Agrify Corporation (AGFY): Business Model Canvas [Dec-2025 Updated]

You're defintely looking at a completely new Agrify Corporation. They didn't just tweak their model; they executed a hard pivot in 2025, shedding the capital-heavy cultivation hardware for an asset-light strategy focused on high-margin brand IP licensing and federally compliant hemp-derived THC beverages. This shift is clear in the Q3 2025 numbers: total revenue hit approximately $4.04 million, with brand licensing already contributing $532,000, but the big question is whether their still-high operating loss of $8.9 million can shrink fast enough to match the new, leaner revenue profile. Let's dive into the full Business Model Canvas to see how this pivot maps near-term risks to clear actions for investors and strategists.

Agrify Corporation (AGFY) - Canvas Business Model: Key Partnerships

The core of Agrify Corporation's (AGFY) new strategy-which led to its rebranding as RYTHM, Inc. (RYM) in September 2025-is built on a tight network of strategic partnerships, especially with Green Thumb Industries Inc. (GTI). This isn't just about capital; it's a deep operational and financial integration that secures brand intellectual property (IP), financing, and distribution, which is defintely a smarter, asset-light model for a consumer packaged goods (CPG) company.

Green Thumb Industries Inc. (GTI) for Financing and Brand IP Licensing

The relationship with Green Thumb Industries is the single most important partnership for Agrify Corporation's pivot. It's a multi-layered deal that shifted Agrify from a struggling cultivation technology provider to a branded solutions company. The financial backing is substantial, starting with a secured convertible note of up to $20 million from a GTI subsidiary in November 2024, with an initial draw of $10 million. Plus, another Secured Convertible Note for $45 million was issued to GTI's subsidiary, RSLGH, LLC, in August 2025, further solidifying the capital structure.

On the brand side, Agrify acquired a portfolio of GTI's consumer packaged goods brand IP-including RYTHM, Dogwalkers, and Beboe-for a purchase price of $50 million in August 2025. The genius part? Agrify immediately licensed the brands back to GTI Core, LLC, allowing GTI to continue manufacturing and distributing them in their existing markets for a monthly license fee. This gives Agrify a high-margin royalty revenue stream without the operational headache. Also, GTI is an indirect owner of 35% of Agrify's common stock, and GTI's CEO, Ben Kovler, serves as Agrify's Chairman and Interim CEO, so the alignment is total.

Third-Party Manufacturers and Co-Packers for Beverage Production

Agrify's focus on its Señorita hemp-derived THC (HD9) beverage brand means they rely heavily on contract manufacturing, which is the definition of an asset-light model. This avoids the massive capital expenditures and fixed costs associated with owning and operating bottling plants. While the specific third-party co-packers aren't publicly named, this network is responsible for the actual production and canning of the Señorita line, including the popular Mango Margarita flavor. This approach allows for rapid scaling and market entry across the nine U.S. states where the product is currently available.

Venue and Event Operators like The Salt Shed for Exclusive Distribution

To drive brand visibility and consumer trial, Agrify has pursued high-impact, exclusive venue partnerships. The most notable is the deal with The Salt Shed, an iconic Chicago music venue run by 16" on Center. Starting January 11, 2025, Señorita became the exclusive hemp-derived THC beverage partner at the venue. This is a brilliant move for direct consumer access.

Here's the quick math on the potential exposure:

Venue Partner	Key Metric (2025 Est.)	Value Proposition
The Salt Shed (Chicago)	Over 600,000 fans expected	Exclusive on-premise sales at all bars and the RISE retail space.
The Salt Shed (Chicago)	145 shows scheduled	Consistent, high-volume exposure and trial for the Señorita brand.

Retail and Distribution Networks for Consumer Product Placement

Getting the product into consumers' hands requires strong retail and distribution partners. For the Señorita brand, which is Farm Bill compliant, the distribution network is a mix of traditional retail and direct-to-consumer (DTC) channels, which is a huge advantage over state-regulated cannabis products. Key partners include major national and regional liquor retailers, which is where the bulk of the volume is generated.

• Major Retailers: Placement in chains like Total Wine, ABC Fine Wine & Spirits, and Binny's.
• Convenience Stores: An announced goal is to roll out distribution to over 1,000 Circle K stores.
• E-commerce: Direct-to-consumer online sales in the nine U.S. states where the product is legal.

Strategic Investors Who Provided up to $20 Million in Convertible Note Financing

While the GTI financing is the largest and most strategic, Agrify also secured other critical capital from institutional investors to fuel the pivot. A private placement in November 2024 raised gross proceeds of approximately $25.9 million from institutional and other accredited investors. This capital was necessary to fund the acquisition of the Señorita brand and transition the business away from its legacy cultivation hardware. What this estimate hides is the dilution risk, but the cash balance of $35.6 million at the end of the third quarter of 2025 shows the capital is there to execute the new strategy.

Agrify Corporation (AGFY) - Canvas Business Model: Key Activities

The core Key Activities for Agrify Corporation have radically shifted in 2025, moving from a capital-intensive hardware model to a high-margin, brand-focused consumer packaged goods (CPG) strategy. Your focus should be on two primary, high-growth activities: manufacturing and selling hemp-derived beverages, and managing a newly acquired portfolio of brand intellectual property (IP).

Manufacturing and marketing of hemp-derived THC (HD9) beverages.

This is the new engine of the business, anchored by the Señorita brand of THC Margaritas, which Agrify acquired in late 2024. The activity involves the precise formulation, co-packing, and aggressive marketing of these hemp-derived Delta-9 THC (HD9) products. This is a high-volume, low-dose play in the alcohol-alternative space, so flavor and consistency are critical operational tasks.

The direct result of this activity is clear in the Q3 2025 financials: Hemp-Derived Products revenue contributed a strong $3.51 million to the quarter's total revenue of approximately $4.04 million. That's the quick math on the pivot's success-it's now the dominant revenue stream.

Key operational tasks for the Señorita brand include:

• Sourcing and processing compliant hemp-derived Delta-9 THC.
• Managing co-packer relationships for scalable, consistent beverage production.
• Executing digital and retail marketing campaigns to position the product as a low-calorie, all-natural alcohol alternative.

Managing and licensing a portfolio of acquired brand intellectual property (IP).

This is the high-margin, asset-light side of the business. In August 2025, Agrify acquired a major portfolio of cannabis brand IP, including RYTHM, Dogwalkers, and Beboe, from Green Thumb Industries. The key activity here is not manufacturing, but rather the management and immediate licensing of this IP back to the seller, Green Thumb Industries, for a recurring royalty fee.

This activity provides a stable, high-margin revenue stream. For the third quarter of 2025, Brand Licensing and Royalty Revenue totaled $532,000. This is pure, recurring income, which is defintely a strategic advantage. It's a smart way to monetize brand equity without the capital expenditure of cultivation or manufacturing.

Q3 2025 Revenue from Core Key Activities (Continuing Operations)

Key Activity Segment	Q3 2025 Revenue (Approx.)	% of Total Q3 2025 Revenue ($4.04M)
Hemp-Derived Products (HD9 Beverages)	$3.51 million	86.9%
Brand Licensing and Royalty Revenue	$532,000	13.2%
Other (Extraction Equipment & Service)	<$0.01 million	<0.1%
Total Revenue from Continuing Operations	$4.04 million	100%

Note: The sum of the two major segments is $4.042 million, indicating the remaining revenue from other activities like extraction equipment is negligible or slightly negative due to rounding in reported figures, confirming the complete focus shift.

Direct-to-consumer (DTC) and retail sales execution.

The success of the HD9 beverage segment relies heavily on effective sales execution across two distinct channels. Agrify must maintain a dual-path distribution model to capture market share quickly. For the Señorita brand, this means navigating both traditional retail shelves and the more complex, but higher-margin, direct-to-consumer online channel.

The company must manage logistics to ensure the Señorita THC Margarita, currently available in 9 states, can be safely and legally shipped and sold online direct to consumers in compliance with evolving hemp-derived product laws. If onboarding new retail partners takes 14+ days, market penetration risk rises.

Researching regulatory arbitrage opportunities for hemp-derived products.

This is a strategic, not just an operational, activity. The entire HD9 beverage strategy is an execution of regulatory arbitrage-capitalizing on the legal distinction between hemp-derived Delta-9 THC (which is federally legal under the 2018 Farm Bill if the product contains less than 0.3% Delta-9 THC by dry weight) and state-regulated cannabis. The key activity is continuous legal and market research to identify new states or product formats where this loophole can be exploited for rapid, low-barrier entry.

The goal is to position the company ahead of material change, as the CEO stated, by focusing on THC products that are available outside of the traditional, expensive dispensary channel.

Continuing to service and sell specialized extraction equipment.

While the focus has shifted dramatically, Agrify still maintains its legacy extraction division. This involves the B2B sale and servicing of specialized equipment for hydrocarbon, ethanol, and solventless extraction. This activity provides a necessary, though now minor, B2B revenue stream and maintains a foothold in the broader cannabis/hemp supply chain. It's a residual activity, but still a key resource that generates revenue and helps the company manage its technical expertise.

Agrify Corporation (AGFY) - Canvas Business Model: Key Resources

Brand IP Portfolio

The company's most critical resource is now its intellectual property (IP), specifically a portfolio of established cannabis and hemp-derived consumer brands. This shift happened in August 2025 when Agrify Corporation acquired a significant brand IP portfolio from Green Thumb Industries (GTI) for a consideration of US$50 million, paid via a convertible note.

This IP portfolio is the engine for the new branded consumer products focus, generating high-margin licensing and royalty revenue. The portfolio includes several well-known names, plus the internally developed hemp-derived THC beverage brand, Señorita, acquired in December 2024.

• RYTHM (core brand, now company name)
• Dogwalkers (pre-rolls)
• Beboe (lifestyle products)
• Señorita (hemp-derived THC beverages)
• incredibles (edibles)
• &Shine, Doctor Solomon's, and Good Green (other brands)

Financial Capital and Liquidity

Cash is the fuel for scaling a new branded strategy, and Agrify has a necessary runway. The company's liquidity position was bolstered by a post-IPO funding round in May 2025, raising $30 million, and a secured convertible note financing of up to $20 million from Green Thumb Industries in November 2024.

As of September 30, 2025, the company reported a cash balance of $35.6 million, which is the capital base supporting the expansion of the Señorita beverage line and new brand licensing initiatives. Here's the quick math on the runway: the operating loss from continuing operations for Q3 2025 was $8.9 million, so the current cash provides a cushion, but profitability must improve fast.

Experienced Leadership Team

The leadership team is a key human resource, specifically the strategic alignment with GTI. Ben Kovler, the Chairman and Interim Chief Executive Officer of Agrify, is also the Chairman and CEO of Green Thumb Industries, Inc. This dual role ensures a deep understanding of the cannabis multi-state operator (MSO) landscape and the consumer packaged goods (CPG) sector. This is a huge advantage for securing and managing licensing deals.

The team also includes new board members, Peter Shapiro and Sanjay Tolia, appointed in February 2025, and a new CFO, Brad Asher, appointed in March 2025, signaling a clear shift in expertise toward branded solutions and financial discipline.

Licensing Agreements with Major MSOs

The core of the new business model relies on a critical contractual resource: the licensing agreement with Green Thumb Industries (GTI). This agreement, a Trademark and Recipe License Agreement, was executed in August 2025.

It allows GTI Core, LLC, a GTI subsidiary, to continue to manufacture and distribute the newly acquired brands (like RYTHM, Dogwalkers, and Beboe) in the regulated cannabis markets. This arrangement immediately turns the brand IP into a revenue stream, which totaled $532,000 in Brand Licensing and Royalty Revenue for Q3 2025.

This is a pure-play licensing model, minimizing capital expenditure (CapEx) and operational complexity for Agrify. The table below outlines the dual nature of the brand IP resource:

Resource Type	Key Asset	2025 Fiscal Impact
Intellectual Property	Brand IP Portfolio (RYTHM, Dogwalkers, Beboe, Señorita)	Acquired for $50 million; drives licensing revenue.
Contractual/Financial	GTI Licensing Agreement	Generated $532,000 in royalty revenue in Q3 2025.

Specialized Extraction Technology and Patents

While Agrify sold its legacy cultivation hardware business (Vertical Farming Units or VFUs) in December 2024, the company's historical expertise and some related intellectual property in extraction remain a resource, though a secondary one.

The company previously offered a comprehensive extraction product line, including hydrocarbon, ethanol, solventless, post-processing, and lab equipment. This technical background, even if the physical assets were sold, provides credibility and a foundation for quality control in the branded concentrates and extracts that GTI licenses and produces. It's defintely a knowledge resource that underpins the value of the licensed 'recipes' and 'brands' that rely on high-quality input materials.

Agrify Corporation (AGFY) - Canvas Business Model: Value Propositions

The core value Agrify Corporation now delivers is a strategic, two-pronged approach: high-growth, asset-light consumer brands and specialized B2B extraction technology. This pivot, cemented by the sale of the capital-intensive cultivation business in January 2025, has shifted the company's focus entirely to higher-margin revenue streams.

Here's the quick math: in the third quarter of 2025, the new Hemp-Derived Products segment drove $3.51 million in revenue, which is the engine for the consumer-facing value propositions. That's a massive sequential jump, so the strategy is defintely working to drive top-line growth.

For Consumers: Federally Compliant, Hemp-Derived THC Beverages (Regulatory Arbitrage)

You get a federally compliant, psychoactive alternative to alcohol, which is a game-changer for access. Agrify Corporation's flagship Señorita brand, a hemp-derived Delta 9 THC (HD9) beverage, bypasses most state-specific cannabis regulations because its THC content is below the 0.3% threshold.

This regulatory arbitrage allows for broader distribution across state lines and online direct-to-consumer sales, which traditional cannabis cannot touch. The US cannabis beverage market is valued at approximately $1.45 billion in 2025, and this strategy positions Agrify Corporation to capture a piece of that high-growth pie.

The company is already executing on this, securing an exclusive partnership with Chicago's Salt Shed music venue in January 2025, which anticipates an audience of over 600,000 music fans for the year.

For Licensees: Established, Recognized Cannabis Brand IP (e.g., RYTHM) for Local Markets

For licensed cannabis operators (licensees) in state-regulated markets, Agrify Corporation offers instant brand equity. They acquired major brand intellectual property (IP) like RYTHM and Dogwalkers in August 2025. Instead of building a brand from scratch, local multi-state operators (MSOs) can license these established, recognized names to sell products in their specific state. This is a much faster path to market.

This brand licensing model generates a high-margin, recurring revenue stream for Agrify Corporation. In Q3 2025, the Brand Licensing and Royalty Revenue segment contributed $532,000 to the top line. That's pure margin gold, which is why this value proposition is so important.

For Investors: Asset-Light Model with High-Margin Brand Licensing Revenue

The value proposition for you, the investor, is a leaner, more scalable business model. Agrify Corporation shed the high fixed costs and substantial debt associated with the Vertical Farming Unit (VFU) and Total Turn-Key (TTK) cultivation projects by selling that business in January 2025.

The new model is asset-light, focusing on intellectual property and brand management, not capital-intensive hardware. This shift is reflected in the company's liquidity, with a cash balance of $35.6 million as of September 30, 2025, providing a necessary runway for the new strategy.

The market is clearly reacting to the new focus, with the company's market capitalization standing at approximately $94.36 Million USD as of November 2025.

• Shed capital-intensive hardware and debt.
• Focus on high-margin IP licensing and brand distribution.
• Cash balance of $35.6 million provides operational flexibility.

For Processors: Comprehensive, Specialized Cannabis and Hemp Extraction Equipment

Agrify Corporation continues to provide value to cannabis and hemp processors through its specialized B2B extraction equipment portfolio. This includes comprehensive systems for hydrocarbon, ethanol, solventless, and post-processing extraction.

The value here is in maximizing concentrate quantity and quality for their customers. The extraction division was a key reason Green Thumb Industries Inc. secured up to $20 million in new convertible note financing for the company in late 2024 and early 2025. This B2B equipment is a stable, high-value offering that complements the new consumer-facing brand strategy.

Access to a High-Growth, Fragmented Alternative Beverage Market

The company provides a direct, branded entry point into the rapidly expanding market for THC-infused libations. Analysts project the THC-infused libation industry will expand with a Compound Annual Growth Rate (CAGR) of 19.2% for the rest of the decade. This is a fragmented market, which means there is a significant opportunity for a well-branded, federally compliant product like Señorita to gain market share quickly.

This market is growing because consumers are actively seeking alcohol alternatives that offer a low-calorie, hangover-free experience. Agrify Corporation is positioned to capitalize on this secular trend in consumer behavior.

Value Proposition Segment	Key Offering and 2025 Metric	Strategic Value to Customer/Investor
Consumers	Señorita HD9 Beverages (Hemp-Derived THC)	Federally compliant access to THC; alcohol alternative; available online and in 9 states.
Licensees	Licensed Brand IP (e.g., RYTHM, Dogwalkers)	Instant brand equity for state-level cannabis markets; $532,000 in Q3 2025 Brand Licensing Revenue.
Investors	Asset-Light Business Model	Higher margins, lower capital expenditure; cash balance of $35.6 million (Q3 2025).
Processors	Specialized Extraction Equipment (e.g., PX-30)	Maximizes concentrate quality and yield; supported by Green Thumb Industries' $20 million financing.
Market Access	Alternative Beverage Market Entry	Taps a market valued at $1.45 billion in 2025 with a projected 19.2% CAGR.

Agrify Corporation (AGFY) - Canvas Business Model: Customer Relationships

The Customer Relationship strategy for Agrify Corporation is undergoing a radical shift in late 2025, moving from a high-touch, long-term B2B equipment model to a dual-focus approach: automated direct-to-consumer (DTC) sales for branded products and a new, high-value brand licensing relationship with a major multi-state operator.

This pivot is financially clear: the new Hemp-Derived Products segment drove approximately $3.51 million of the company's roughly $4.04 million in total revenue for the third quarter of 2025 (Q3 2025). The old B2B model is being replaced by scalable, recurring licensing revenue.

Automated and personalized online direct-to-consumer (DTC) sales

The primary customer relationship for the core Hemp-Derived THC (HD9) beverage business is automated and low-cost, focusing on scale and reach. This model is built around the Señorita brand, which Agrify Corporation acquired in late 2024.

Customers acquire the product through an efficient, self-service online channel, or via retail partners in the 9 states where the product is currently available. The relationship is transactional but is personalized through targeted digital marketing and product-level engagement to drive repeat purchases.

• Acquire new customers via digital advertising and social media campaigns.
• Retain customers through automated email marketing and loyalty programs.
• Boost sales by offering the Señorita THC Margarita and other flavors directly online.

High-touch, long-term licensing relationships with major cannabis operators

Agrify Corporation has established a new, high-value, long-term licensing relationship that generates a recurring revenue stream with minimal operational overhead. This is a strategic relationship, not a transactional one, and focuses on intellectual property (IP) management.

The key example is the August 27, 2025, deal where Agrify acquired a portfolio of cannabis brand IP-including RYTHM, Dogwalkers, and Beboe-from Green Thumb Industries Inc. for $50 million. Concurrently, Agrify licensed the IP back to Green Thumb Industries Inc. (GTI Core, LLC) for manufacturing and distribution.

Here's the quick math: Agrify's relationship with Green Thumb Industries Inc. is now structured to deliver a predictable, sales-based revenue stream.

Relationship Component	Details	Financial Basis
Acquisition Value (IP)	RYTHM, Dogwalkers, Beboe, etc.	US$50 million (via convertible note)
Licensing Fee Structure	Trademark and Recipe License Agreement	Monthly license fee, payable in cash, based on sales of licensed products.
Operational Commitment	Agrify manages IP; Green Thumb Industries Inc. handles manufacturing/distribution.	Low operational cost for Agrify, high-touch account management for the partner.

Brand-building through experiential marketing and venue partnerships

To drive brand awareness and trial for its consumer products, Agrify Corporation is using experiential marketing (marketing that focuses on creating memorable experiences for customers) through exclusive venue partnerships. This is a critical strategy to move the Señorita brand into the mainstream.

The company secured an exclusive partnership on January 11, 2025, to sell its hemp-derived THC beverages at The Salt Shed, a major Chicago music venue. This partnership is defintely high-visibility, positioning the product as an alternative to alcohol for a large consumer base.

This single venue partnership targets an audience of over 600,000 music fans anticipated for the year, providing a direct, high-volume environment for product sampling and brand-building. The goal is to build brand equity before the customer moves to the automated DTC channel.

Dedicated B2B sales and account management for extraction equipment clients

While Agrify Corporation sold its cultivation business in January 2025, it retains a legacy B2B relationship model through its extraction equipment division. This is a high-touch sales process that involves technical consulting and dedicated account management, but its future is uncertain as the company explores alternatives for the business segment.

The relationship is defined by providing a full-service, turnkey solution (Agrify Total Turn-Key Solution), not just selling a box. For example, a 2024 deal with Grotech Farms LLC involved a $500K Turnkey Hydrocarbon Extraction and Lab Equipment Package, including the PX10 Hydrocarbon Extractor and a UL-Compliant C1D1 Explosion Proof Room. This requires deep, long-term technical support and account oversight.

• Provide technical consulting on complex extraction lab build-outs.
• Offer dedicated account management for large-scale equipment purchases.
• Support compliance and installation of specialized equipment like C1D1 rooms.

Agrify Corporation (AGFY) - Canvas Business Model: Channels

You need to understand that Agrify Corporation's channels have fundamentally shifted from a B2B hardware focus to a multi-pronged consumer-packaged goods (CPG) distribution model, plus a high-value brand licensing structure. This pivot, finalized in 2025, is why the Q3 2025 revenue from continuing operations hit approximately $4.04 million, driven overwhelmingly by the new brand strategy. It's a hybrid approach now, balancing direct consumer sales with major partner distribution.

Direct-to-consumer e-commerce platform

The direct-to-consumer (D2C) channel is critical for establishing the Señorita brand's presence and controlling the customer experience, especially in the fragmented hemp-derived THC (HD9) market. Agrify Corporation uses the dedicated e-commerce platform, `www.senoritadrinks.com`, to sell products like the Señorita THC Margaritas.

This channel bypasses traditional, state-regulated cannabis dispensaries, allowing for sales in nine states as of early 2025 where hemp-derived products are legal. Honestly, this D2C channel is the fastest way to scale a consumer brand when you're dealing with a patchwork of state laws.

Traditional retail, grocery, and convenience store distribution networks

The primary volume driver for the Señorita brand is the traditional retail channel, treating the hemp-derived THC beverage as a standard CPG item. This is a massive shift from the old vertical farming unit (VFU) model.

The $3.51 million in Hemp-Derived Products revenue for Q3 2025-which represents the vast majority of the company's top line-comes largely from moving product through third-party distributors into grocery, convenience, and liquor stores. This retail push is defintely where the company is spending its capital, aiming to get Señorita onto shelves right next to non-alcoholic beers and seltzers.

Exclusive on-premise partnerships

Agrify Corporation strategically uses exclusive on-premise partnerships to build brand awareness and drive trial in high-traffic, social settings. This is pure marketing disguised as a sales channel.

A concrete example is the January 2025 partnership with the Chicago music venue, The Salt Shed, where Señorita became the exclusive partner for hemp-derived THC beverages at the venue bars. This kind of deal puts the product directly into the hands of the target consumer, positioning it as a premium alcohol alternative.

B2B sales force for high-value extraction equipment

While the cultivation hardware business was sold in January 2025, Agrify Corporation retained its extraction solutions portfolio, which is sold through a dedicated B2B sales force. This channel targets licensed cannabis and hemp producers, processors, and labs.

These are high-value, complex sales requiring a specialized team. Here's the quick math: with Q3 2025 continuing operations revenue at $4.04 million and Hemp-Derived Products revenue at $3.51 million, the remaining revenue of approximately $0.53 million is primarily attributable to the sale of this specialized extraction equipment and related services. This channel provides a necessary, albeit smaller, revenue stream from the company's legacy technology expertise.

Licensed manufacturing and distribution by partners like Green Thumb Industries Inc. (GTI)

This is the newest and arguably most strategic channel, creating a high-margin, recurring revenue stream. In August 2025, Agrify Corporation (which changed its name to RYTHM, Inc. in September 2025) acquired a portfolio of brand intellectual properties (IPs)-including RYTHM, Dogwalkers, and Beboe-from Green Thumb Industries Inc. (GTI) for $50 million.

Immediately, Agrify Corporation licensed these brands back to GTI for manufacturing and distribution across GTI's extensive multi-state operator (MSO) network. This is a pure licensing channel, where Agrify receives a monthly license fee, payable in cash, based on sales of products using the licensed IP. GTI, which owns 35% of Agrify's common stock, acts as a powerful, built-in distribution partner for the newly acquired brands.

Channel Type	Product/Service	Q3 2025 Revenue Contribution (Est.)	Primary Function
Direct-to-Consumer (D2C)	Señorita HD9 Beverages	Embedded in the $3.51 million CPG figure	Market penetration, brand building, and direct customer data collection.
Traditional Retail & Grocery	Señorita HD9 Beverages	Bulk of the $3.51 million CPG figure	Volume sales and broad market accessibility via third-party distributors.
Exclusive On-Premise	Señorita HD9 Beverages	Minor, but high-visibility sales	Brand positioning as an alcohol alternative (e.g., The Salt Shed venue).
B2B Sales Force	Extraction Equipment & Services	Approximately $0.53 million	High-value, complex sales to licensed cannabis/hemp processors.
Licensed Distribution	RYTHM, Dogwalkers, Beboe, etc. Brand IP	Future recurring license fees (post-August 2025)	High-margin, recurring revenue via GTI's MSO manufacturing and distribution network.

Agrify Corporation (AGFY) - Canvas Business Model: Customer Segments

You're looking at a company that has fundamentally changed its customer focus in 2025, so the old cultivation hardware customers are gone. The new strategy is a hybrid model: a consumer packaged goods (CPG) business driving the top line, plus a high-tech business-to-business (B2B) equipment segment still generating revenue. Honestly, the CPG side is where the action-and the majority of the money-is right now.

Here's the quick math: Agrify Corporation's total revenue from continuing operations in the third quarter of 2025 (Q3 2025) was approximately $4.04 million. The new consumer-facing products accounted for the vast majority of that figure, showing a decisive shift in who the company is built to serve.

US adult-use consumers seeking low-dose, hemp-derived THC beverages.

This is Agrify Corporation's largest and most immediate customer segment, served primarily through the Señorita brand of hemp-derived THC Delta 9 (HD9) beverages. These consumers are looking for a low-calorie, low-sugar, all-natural alternative to alcohol, and they are typically located in states where recreational cannabis is not yet fully legalized, but HD9 products are permitted under the 2018 Farm Bill.

The success of this pivot is defintely clear in the Q3 2025 financials, where revenue from Hemp-Derived Products reached $3.51 million. This customer base is expanding rapidly, driving a 98% sequential revenue surge from Q2 2025 to Q3 2025. The Señorita brand is currently available in nine U.S. states, plus Canada, with a major distribution push underway to over 1,000 Circle K stores.

• Seeking alcohol alternatives (hangover-free, low-calorie).
• Located in HD9-friendly states, expanding access.
• Targeted by the flagship Señorita THC Margarita (e.g., Mango, Paloma, Lime Jalapeño).

Multi-state cannabis operators (MSOs) and licensed producers who need brand IP.

This segment represents a high-margin, B2B licensing model following the acquisition of a significant brand portfolio, including RYTHM, Dogwalkers, and Beboe. Agrify Corporation acts as a brand owner, licensing its intellectual property (IP) to MSOs, who then handle the manufacturing and distribution within their respective state-legal cannabis markets.

This is a strategic, capital-light revenue stream, and it generated $532,000 in Brand Licensing and Royalty Revenue in Q3 2025. The key relationship here is with Green Thumb Industries Inc., which is a major investor and partner in this new model, providing a clear path for brand penetration into regulated state markets.

Cannabis and hemp processors requiring specialized extraction equipment.

Despite the strategic pivot away from cultivation hardware, Agrify Corporation maintains its Extraction Solutions Portfolio, which serves licensed cannabis and hemp processors. These customers are B2B entities that require high-tech systems for converting biomass into concentrates, oils, and distillates-the raw materials for products like the Señorita beverages and other licensed brands.

The portfolio is comprehensive, covering hydrocarbon, ethanol, solventless, and post-processing extraction equipment. While the company's Q3 2025 revenue heavily favors the CPG segment, the extraction division remains a core part of its value proposition to the industry, providing essential tools to maximize concentrate quantity and quality.

Retail and hospitality venues looking for exclusive beverage partnerships.

This is a critical channel strategy that treats venues as a distinct customer segment, aiming for exclusive, high-visibility distribution points. The goal is to drive brand awareness and direct sales of the HD9 beverages in an on-premises setting, positioning them as a premium alcohol alternative.

A concrete example is the exclusive partnership with The Salt Shed, a major music venue in Chicago, which began in January 2025. This single partnership is anticipated to expose the Señorita brand to over 600,000 music fans annually, demonstrating the value of this customer segment for brand building and volume sales.

Customer Segment	Primary Offering	Q3 2025 Revenue Contribution	Key Actionable Insight
US Adult-Use Consumers	Señorita HD9 Beverages	$3.51 million	The core growth engine; focus is on expanding retail distribution (e.g., Circle K) and new flavors.
MSOs & Licensed Producers	Brand Licensing & IP (RYTHM, Beboe)	$532,000	High-margin, recurring revenue stream; success is tied to MSO partner's execution in state-legal markets.
Cannabis & Hemp Processors	Extraction Solutions Portfolio	Residual/Minimal in Q3 2025 (Focus shifted)	B2B equipment sales; long-term value in maximizing concentrate quality for the entire industry.
Retail & Hospitality Venues	Exclusive Beverage Partnerships	Indirectly via CPG Revenue	Critical for brand building and high-volume, on-premises consumption (e.g., The Salt Shed partnership).

Agrify Corporation (AGFY) - Canvas Business Model: Cost Structure

You're looking at Agrify Corporation's (AGFY) cost structure and, honestly, it tells the story of a high-stakes strategic pivot. The direct takeaway is this: the cost base is still too heavy for the current revenue scale, even after divesting the legacy cultivation business, which is why the operating loss remains significant. The focus is now on creating a high-margin, brand-centric model to drive operating leverage (the rate at which profit grows faster than costs).

Operating Loss from Continuing Operations

The most critical number to focus on is the operating loss. For the third quarter of 2025 (Q3 2025), Agrify Corporation reported an operating loss from continuing operations of $8.9 million. This is the clearest sign that, despite a 98% sequential revenue surge in the quarter, the fixed and semi-fixed costs are still overwhelming the top line. The company is essentially burning cash to fund its transition to a branded consumer packaged goods (CPG) platform.

Here's the quick math: the Q3 2025 revenue was approximately $4.04 million, meaning the operating expenses were more than three times the revenue. This is a classic scaling challenge for a company in a sharp transition.

Selling, General, and Administrative (SG&A) Expenses

Selling, General, and Administrative (SG&A) expenses are the primary driver of the company's high fixed costs, even after management's cost-cutting efforts. For the fiscal year 2024, SG&A was $12.31 million, a reduction from $16.06 million in 2023. This reduction came from cuts in salaries, stock-based compensation, and consulting fees.

Still, the cost remains substantial as the company builds out its new CPG sales and distribution network. For the six months ended June 30, 2025, SG&A expenses were $11.271 million. This suggests the annualized 2025 SG&A will likely exceed the 2024 figure as they ramp up marketing for the new brands.

The SG&A cost is now heavily weighted toward brand building and distribution setup:

• Marketing and advertising for the Señorita brand.
• Salaries and commissions for the new sales team.
• Administrative overhead for SEC compliance and corporate functions.

Cost of Goods Sold (COGS) for Branded Beverage Manufacturing and Distribution

The Cost of Goods Sold (COGS) reflects the direct costs of producing and distributing the hemp-derived products, such as Señorita THC Margaritas. The shift to a brand-centric model is intended to minimize this cost relative to revenue, especially from the licensing stream.

For the three months ended June 30, 2025, the COGS for continuing operations was $1.36 million. This is a critical metric to watch, as the new strategy relies on maintaining a low COGS on the licensing side to drive high gross margins.

The cost structure is dual-natured now:

• Higher COGS for direct sales of manufactured products (like the beverages).
• Minimal COGS for brand licensing and royalty revenue, which is nearly pure profit.

Research and Development (R&D) for New Product Formulations

Agrify Corporation's R&D expenditure has been significantly curtailed as the company shifted away from capital-intensive cultivation technology. R&D for the fiscal year 2024 was only $0.74 million, a sharp decrease from $2.30 million in the previous year.

The R&D focus has moved from hardware innovation (Vertical Farming Units) to formulation science for the branded beverages and other consumer products. This is a defintely smaller, more targeted investment, reflecting the CPG model's priority on marketing over deep-tech development.

Brand IP Acquisition and Maintenance Costs

A major one-time cost was the strategic realignment itself. The company sold its legacy Cultivation business on December 31, 2024, resulting in a loss on disposal of $11.9 million in the fourth quarter of 2024. This is the cost of shedding the old, capital-intensive model to finance the new brand strategy.

The new cost base includes the amortization and maintenance of new brand IP, such as the Señorita brand, which was acquired in December 2024. While the exact maintenance cost is not itemized, the value of the new licensing revenue stream-which totaled $532,000 in Q3 2025-shows the high-margin return on the brand investment.

The ongoing costs are tied to protecting the brand equity:

• Legal fees for trademark and intellectual property (IP) defense.
• Contractual royalty payments for licensed brands (e.g., RYTHM, Dogwalkers, Beboe).
• Marketing spend to maintain brand relevance and consumer awareness.

To summarize the cost structure for continuing operations, here is a breakdown of key expenses for the most recent periods:

Cost Component	Period	Amount (in millions)	Commentary
Operating Loss from Continuing Operations	Q3 2025	$8.9	Indicates cost base is still too high relative to new revenue scale.
Selling, General, and Administrative (SG&A)	6 Months Ended June 30, 2025	$11.271	High costs reflect investment in CPG sales, marketing, and distribution.
Cost of Goods Sold (COGS)	3 Months Ended June 30, 2025	$1.36	Direct cost of manufacturing and distributing hemp-derived products.
Research and Development (R&D)	Fiscal Year 2024	$0.74	Significantly reduced, now focused on product formulation, not hardware.
Loss on Disposal of Cultivation Business (Contextual Cost)	Q4 2024	$11.9	One-time cost of the strategic pivot to the brand-centric model.

The next step for management is clear: Finance needs to draft a 13-week cash view by Friday to ensure the current cash runway of $35.6 million (as of September 30, 2025) is sufficient to cover these operating losses until the new CPG revenue streams achieve scale and generate positive operating cash flow.

Agrify Corporation (AGFY) - Canvas Business Model: Revenue Streams

Direct sales of hemp-derived products, which generated $3.51 million in Q3 2025

You're looking at a company that has fundamentally changed how it makes money, and the numbers show it. Agrify Corporation's primary revenue stream now comes from the direct sale of consumer-facing products, specifically hemp-derived THC beverages like Señorita THC Margaritas. This is a high-volume, quick-turn consumer packaged goods (CPG) model, which is a massive shift from their old capital-equipment focus.

In the third quarter of 2025 (Q3 2025), this segment generated $3.51 million in revenue from continuing operations. Honestly, this revenue stream is the engine of the new model, driving the vast majority of the top line. It is a clear action: sell products directly to consumers where the regulatory environment allows for hemp-derived cannabinoids.

Brand licensing and royalty fees, totaling $532,000 in Q3 2025

This is where the high-margin opportunity lies. The company is actively monetizing its intellectual property (IP) through brand licensing and royalty agreements, a much less capital-intensive model than building out cultivation facilities. This stream is derived from licensing acquired brand IP, including names like RYTHM, Dogwalkers, and Beboe, for manufacture and distribution by third parties.

The licensing and royalty fees totaled $532,000 in Q3 2025, a crucial, high-margin contribution to the overall revenue mix. This stream typically carries minimal Cost of Goods Sold (COGS), so it's a direct path to improved profitability over time. The new model is defintely focused on recurring, high-margin licensing fees.

Sales and service of specialized cannabis and hemp extraction equipment

To be fair, Agrify Corporation's history is rooted in technology, including extraction equipment. However, the strategic pivot has effectively sidelined this revenue stream in the continuing operations for late 2025. The company sold its capital-intensive cultivation business (Vertical Farming Units, or VFUs) in late 2024, and while the extraction business is still being explored for alternatives, its contribution to the core, continuing revenue is now negligible.

Here's the quick math: the total revenue from continuing operations in Q3 2025 is almost entirely accounted for by the two branded product streams, leaving no material revenue from equipment sales or service in the continuing business. This is a key point for investors: the old hardware model is gone.

Total revenue from continuing operations was approximately $4.04 million in Q3 2025

The total revenue from continuing operations for the quarter ended September 30, 2025, was approximately $4.04 million. This figure represents a massive sequential jump from the prior quarter, but it also clearly maps the new revenue focus.

You can see the clear breakdown of where the money is coming from:

Revenue Stream (Q3 2025)	Amount (in Millions USD)	Percentage of Total Revenue
Direct Sales of Hemp-Derived Products	$3.51 million	86.9%
Brand Licensing and Royalty Fees	$0.532 million	13.1%
Extraction/Equipment Sales & Service (Continuing Ops)	Negligible / Immaterial	~0.0%
Total Revenue from Continuing Operations	$4.04 million	100.0%

The revenue base is now simpler and centered on consumer brands. That's a huge operational change.

The new model is defintely focused on recurring, high-margin licensing fees

The strategic shift is all about moving from a capital-intensive, hardware-based business to an asset-light, brand-centric one. The goal is to maximize the percentage of revenue derived from licensing, which is a recurring, high-margin stream.

• Maximize licensing revenue: The $532,000 in Q3 2025 is just the start of this focus.
• Reduce capital expenditure: Licensing requires far less upfront cash than manufacturing vertical farming units.
• Increase gross margin: Licensing fees have a minimal Cost of Goods Sold (COGS), boosting overall profitability.

The action for management is clear: acquire and license more consumer-facing brands to grow that recurring revenue component, moving the company closer to sustainable profitability.