MILKIFY
Quarter ended June 30, 2026

Q2 2026 Investor Update

Record consumer sales, growing clinical demand, expanded production capacity, and continued preparation for the donor milk launch.

Prepared July 23, 2026Houston, TexasConfidential
Quarter summary

Q2 highlights

Net sales
$583K
+3.6% vs Q1 · +8.2% YoY
Gross profit
$378K
-0.1% vs Q1 · -2.1% YoY
Gross margin
64.8%
-2.4 pp vs Q1 · -6.8 pp YoY
Quarter-end cash
$1.410M
June 30, 2026
Consumer operations

Demand again reached production limits

Q2 net sales were $583.0K, the strongest sales quarter in company history. Revenue increased 3.6% from Q1 2026 and 8.2% year over year.

Milkify reached maximum capacity and took several products out of stock again during May and June. The new freeze-dryer has been delivered and is now being installed. It should provide incremental capacity relief as it is commissioned.

Milkify Medical

Clinical and family interest grew with virtually no advertising

Milkify Medical received 64 request-information submissions during Q2. Monthly volume increased from 9 in April to 21 in May and 34 in June.

Healthcare professionals represented 34 of the 64 inquiries, or 53%. This group included nurses, physicians, dietitians, and other medical professionals. The remaining 30 inquiries came from families.

Since its paid launch in May, the Medical storefront generated $5.1K in Q2 net sales after discounts and returns. July generated another $6.6K in order value through July 23, bringing launch-to-date order value to approximately $11.7K.

Institutions are also increasingly reaching out to learn more about mother's own milk fortification and potential inpatient workflows.

July sales are a subsequent event after the June 30 quarter end. Q2 sales use net figures after recorded discounts and returns.

Family story

The Maestas family fortification journey

Jen and Rick Maestas used freeze-dried mother's own milk fortification for their daughter Kiana at Children's Hospital Colorado with Milkify's support and clinical guidance. They were the first family in that neonatal intensive care unit to use this approach. Kiana was discharged after a 128-day hospital stay.

Jen and Rick have since developed parent-facing resources focused on reducing the operational burden placed on families who pursue mother's own milk fortification. They will help Milkify develop and manage a future family support community as ambassadors. The community has not launched yet.

The Maestas family hopes their experience can make fortification easier for other families and care teams.
The Maestas family shares Kiana's hospital feeding journey and the role of freeze-dried breast milk.
Accessible video summary

The vertical video shows preparation of freeze-dried breast milk in a neonatal intensive care setting, with Kiana visible in an incubator in the background. The family describes using freeze-dried breast milk as part of Kiana's hospital feeding and fortification plan.

Production and launch readiness

Additional capacity is arriving as the donor milk program advances

Now
Freeze-dryer installationDelivered and being installed after Q2 capacity constraints.
November
Pasteurizer deliveryTiming moved to accommodate a homogenizer modification requested after clinician feedback.
Q4 target
Donor milk launchFinal timing depends on commissioning, validation, and launch readiness.

Homogenizer modification

Milkify elected to add a homogenizer modification to the high-temperature, short-time pasteurizer based on feedback from neonatal intensive care unit nurses. We believe homogenization will add meaningful value and improve usability for inpatient care.

Clinical evidence

Publication and recruitment milestones

Boston Children's Hospital

Boston Children's first case series involving Milkify has been approved for publication. We will circulate it once we are permitted to share it. The Phase II study is currently recruiting.

Rady Children's Hospital and UC San Diego

The case study was published in the American Journal of Perinatology Reports. Since publication, Milkify has seen an increasing number of institutions reach out to learn more about Milkify Medical and human milk fortification.

Commercialization support

Milkify is benefiting from Alma Life Sciences' biotech operating and reimbursement experience. This update intentionally keeps the reimbursement discussion high-level.

American Academy of Pediatrics

Milkify is confirmed to participate in the American Academy of Pediatrics conference in October 2026.

Shipping and fulfillment

Milkify transitioned to a new FedEx third-party logistics partner

The decision followed shipment-level rate analysis using March through May shipping activity. The analysis compared 3,205 shipments from the prior arrangement with like-for-like FedEx rates.

34.3%
modeled reduction versus prior billed cost
$56.5K
modeled three-month savings
~$226K
annualized at the analyzed run rate

The figures are modeled from historical shipment mix and comparable service levels. Actual savings will depend on shipment mix, service selection, and implementation performance.

Fundraising

Oversubscribed Seed round closed at $2.8M

Milkify closed the Seed round on June 30. QuickBooks Online reports $719.3K of Seed financing inflows during Q2.

Financials

Q2 financial highlights

Gross margin was 64.8%, compared with 67.2% in Q1 2026 and 71.6% in Q2 2025. Shipping, freight, and delivery expense was $176.9K, or 30.3% of net sales. The transition to the new FedEx third-party logistics partner is intended to reduce this pressure going forward.

Operating expenses were $600.7K. Net operating income was negative $222.8K. Quarter-end cash was $1.410M.

MetricQ2 2025Q1 2026Q2 2026vs Q1YoY
Net Sales$538,892$562,675$583,017+3.6%+8.2%
Gross Profit$386,069$378,359$377,967-0.1%-2.1%
Gross Margin71.6%67.2%64.8%-2.4 pp-6.8 pp
Operating Expenses$382,350$566,908$600,728+6.0%+57.1%
Net Operating Income$3,719-$188,548-$222,761-$34,213-$226,481
Net Income-$37,252-$226,269-$257,262-$30,993-$220,010

Q2 capital snapshot

Cash on hand, March 31$1,128,901
Operating cash flow-$173,587
Capital expenditures-$260,864
Seed financing inflows+$719,299
Lease principal-$4,200
Cash on hand, June 30$1,409,548

Rounded line items are shown. The unrounded QBO cash-flow source reconciles exactly to ending cash.

Current risks and mitigants

Launch timing: Q4 depends on November pasteurizer delivery, commissioning, and validation.

Shipping: The new FedEx third-party logistics relationship targets Milkify's largest gross-margin pressure.

Institutional adoption: Inbound clinical interest is growing while evidence, workflow integration, and reimbursement work continue.

How investors can help

Introductions

We welcome introductions to:

  • Neonatal intensive care unit leaders and pediatric clinical teams
  • Hospital innovation and nutrition groups
  • Reimbursement and health-plan leaders interested in human milk fortification and donor milk access

Thank you for your continued support.

Pedro R. Silva
Co-founder, Milkify
pedro@milkify.me · (956) 532-8532