Cruz Foam Achieves Positive Revenue, Expands Commercial Growth
Cruz Foam, one of the very first graduates of the Santa Cruz Works Accelerates program, has reached a defining milestone in its journey: achieving positive revenue. This accomplishment underscores the company’s steady progress from an early-stage innovation into a scaling commercial venture driving impact in sustainable materials.
In the second quarter of 2025, Cruz Foam crossed into profitability on a gross margin basis while reducing operating expenses and narrowing its overall cash burn. For a company that set out to replace petroleum-based foams with ocean-friendly alternatives, achieving positive revenue marks a pivotal step forward.
Several strategic moves helped propel Cruz Foam this quarter. The company welcomed seasoned executive Matt Lenzen as Vice President of Sales. With nearly three decades of experience in packaging and supply chain leadership, Lenzen is driving partnerships with key converter and distributor partners including Atlantic Packaging, UN1F1ED Packaging, and Victory Foam. Early results are promising: revenue growth accelerated, supported by the successful onboarding of Tempest, a major block-and-brace customer, and growing traction in food, beverage, and pharmaceutical insulation. New use cases are also emerging, such as veterinary and specialty applications.
The Product team played a critical role in broadening market reach, producing essential samples and educating customers on material properties. Their leadership in the wine industry stood out, with the introduction of five tailored products to a major West Coast distributor, driving significant new orders. At the same time, the team streamlined design and conversion processes through technical collaborations with Mathias Die Company.
Cruz Foam’s R&D and Commercial Operations teams made strong advances in material science and process improvement. They demonstrated that up to 50% recycled content can be incorporated without performance loss, explored humidity resilience using chitosan, and initiated trials in injection molding—opening an entirely new vertical. Operationally, new blending equipment was installed to reduce waste and improve cost of goods sold, while further equipment upgrades are planned for recycling and safety.
On the partnership and expansion front, Cruz Foam is evaluating the establishment of a dedicated West Coast manufacturing site, with Reno emerging as a promising candidate due to its strategic logistics advantages. Internationally, interest is building through potential collaborations with AMC Industrie in France, supported by Cruz Foam’s debut at Paris’s Édition Spéciale by Luxe Pack.
The company also notched a major milestone in environmental compliance, securing TUV OK industrial compostable certification. This recognition, especially influential in Europe, validates Cruz Foam’s commitment to measurable sustainability and strengthens its position with global brands seeking certified alternatives.
Marketing and visibility efforts further reinforced this momentum. Cruz Foam participated in high-profile events such as SF Climate Week and NASA’s Innovation Forum, while launching collaborative campaigns for Earth Month with other sustainable material leaders. Media interest continues to grow, with a strong pipeline of storytelling expected in the coming quarters.
From humble beginnings in Santa Cruz to the global stage, Cruz Foam’s trajectory is a testament to persistence, innovation, and mission-driven leadership. Achieving positive revenue is more than a financial milestone—it is proof that sustainable solutions can compete, scale, and thrive.
