EMERGE Reports Strong Q3 2025 Results

Executive Summary

• EMERGE Commerce Ltd. reported Q3 2025 revenue of $7.0 M, up 58% YoY, and achieved its third consecutive quarter of positive Adjusted EBITDA ($261 K).
• Net income turned positive at $26 K (vs. a loss of $730 K in Q3 2024); cash flow from operations was $919 K, boosting the cash balance to $4.1 M.
• Approximately 24.5 M warrants expired unexercised in 2025, leaving the company with zero outstanding warrants entering 2026 and a more streamlined capital structure.

Key Details

• Revenue: $7,011,656 (Q3 2025) vs. $4,430,079 (Q3 2024), +58% YoY.
• Gross Profit: $2,400,000 approx.; gross margin ~34% after excluding a $167 K inventory fair‑value adjustment.
• Adjusted EBITDA: $260,565 (positive) vs. $(253,912) loss in Q3 2024; improvement of $514 K YoY.
• Net Income: $26,326 (Q3 2025) vs. $(730,186) loss in Q3 2024; adjusted for inventory adjustment net income would be ~$193 K.
• Cash Flow from Operations: $919,000 vs. $(411,000) outflow in Q3 2024; cash balance increased to $4.1 M (up $2.5 M YoY).
• Warrants Update:
• 12.2 M warrants @ $0.25 expired Nov 24 2025; 12.3 M warrants @ $0.10 expired Jul 2025 – total ~24.5 M expired unexercised.
• 2.7 M out‑of‑the‑money warrants exercised at $0.10 in July 2025, raising ~$270 K cash.
• CEO voluntarily exercised ~91 K stock options @ $0.11.
• Acquisition Pipeline: Focus on profitable targets with $750 K–$2 M Adj. EBITDA in grocery, golf and B2B e‑commerce enablement sectors; building on recent T2G acquisition.
• Debt Update: Existing lender relationship since Nov 2019 remains strong; anticipated interest‑rate cuts expected to generate cash savings and may support cheaper long‑term refinancing.
• Outlook Q4 2025: Management expects continued YoY revenue growth and positive Adjusted EBITDA, targeting full‑year objectives of strong revenue growth, positive Adj. EBITDA and positive cash flow.
• Conference Call: Held 26 Nov 2025 at 9:00 am ET (Dial: 416‑945‑7677 / 888‑699‑1199, ID 94603; online link provided).

Notable Quotes

“Q3 was another statement quarter for EMERGE. We delivered 58% year‑over‑year revenue growth…most importantly, exceptional cash flow generation…We remain focused on operational efficiency, profitable growth, and prudent capital management.” – Ghassan Halazon, Founder & CEO

All financial figures are unaudited and presented in Canadian dollars unless otherwise noted.