Shares in recent ASX IPO Sea Forest Ltd (ASX: SEA) have edged 3% higher today after the company reported a sharp lift in revenue, highlighting early signs of commercial traction for its seaweed-based livestock feed business.
The company, which counts surfing champion Mick Fanning among its early backers, listed on the ASX in November 2025 with a bold mission: to reduce methane emissions from cattle using a proprietary seaweed feed additive.
Now, investors are starting to see the first signs of that story playing out.
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Revenue growth starts to accelerate
Sea Forest reported revenue of $1.1 million for the March quarter, up 92% on the previous quarter.
Whilst the absolute number is still small, the growth rate stands out and is exactly what investors are hoping to see as the business starts to scale commercial volumes of its SeaFeed™ product across its customer base.
Importantly, this growth is being driven by contracted supplementation volumes, meaning customers are actively adopting the product rather than just trialling it.
The company also reported more than 130,000 head of cattle under agreement, a figure that has continued to grow following new supply deals signed after the quarter, giving some visibility into future demand.
A bigger opportunity beyond cattle
During the quarter, the company partnered with global fashion brand Theory to launch a low-carbon wool collection, using its methane-reducing feed in sheep.
While wool is expected to be a smaller revenue contributor initially, it highlights that Sea Forest's technology has applications beyond just cattle.
This matters because the long-term investment case for early-stage investors is tied to the size of the total addressable market, and bigger is usually better.
Still early days
Despite the strong growth, Sea Forest remains in the early stages of its commercial journey.
The company reported operating cash outflows for the quarter and ended with around $8.4 million in cash, although it also holds additional liquidity in short-term investments.
That's typical for a business in scale-up mode, but it does mean execution will be critical to ensure the company has a strong foundation for future capital raises.
Investors will be watching whether the company can continue new converting agreements into sustained revenue growth while managing its cash position.
Foolish bottom line
Sea Forest's latest update shows early signs of traction, with strong revenue growth and increasing customer adoption. But as a recent IPO, the story is still unfolding, and the key test will be whether this early momentum can translate into scalable, profitable growth over time.
