• Agrify’s revenue increased by 63.5% YoY to reach USD 19.3 million in Q2 2022, compared to USD 11.8 million in the same period last year. Agrify’s revenue year-to-date also grew by 140.8% to USD 45.4 million compared to the prior year's YTD revenue of USD 18.8 million.

• The growth in the top line was due to increased demand across the company’s product suite including vertical farming units (VFUs), extraction solutions, and cultivation products. Although the company did not report new bookings for the quarter its total bookings stood at USD 420 million as of May 2022 with 4,569 VFUs in operation.

• Agrify’s gross profits improved YoY, reaching 1.6 million (8.3% margin) in Q2 2022 compared to USD 0.5 million (4.5% margin) in the same quarter last year. 

• However, the company reported an operating loss of USD 91.5 million for the quarter which was almost 17x the loss in Q2 2021. The company attributed this to impairment charges of USD 69.9 million and increases in other general and administrative expenses including increases in accounts receivable, loans receivable, inventory obsolescence, and increases in depreciation and amortization. Adjusted EBITDA loss for the quarter also worsened as a result which declined 331.1% YoY to USD 19.4 million. 

Recent operational highlights include: 

<ul><li>Announced a definitive agreement with Ora Pharm , a New Zealand-based medical cannabis producer. (20 VFUs, USD 1.625 million deal value), marking entry into the New Zealand cannabis market.</ul> 

• New product solution launches: Unveiled its new short path, thin film distillation system “CannaBeast 13” in June 2022. This system offers improvements in terms of flexibility, ease of use, and consistency to cannabis operators when extracting cannabis oil.

<ul><li>Announced an agreement with its institutional lender to restructure its credit facility where repayment of an existing credit note is to be paid with a combination of cash and issuance of a new note with a reduced principal amount. The terms of the new agreement are yet to be finalized. Agrify previously raised USD 135 million via a convertible debt facility in March 2022 .</ul> 

<ul><li>The company is revising its previously announced FY2022 revenue guidance range downwards by ~50% to USD 70 million–75 million, citing the downturn in the cannabis industry.</ul>