Goodfood Reports Fiscal Year and Fourth Quarter 2025 Results with Net sales of $121 million and $25 million, Gross Profit of $50 million and $10 million and Adjusted EBITDA Superscript 1 of $6 million and $0.4 million, respectively
Executive Summary
- Goodfood reported Q4 FY 2025 net sales of C$25.0 M, a 27% decline YoY, and a net loss of C$4.1 M; annual net sales fell 21% to C$120.9 M with a net loss of C$8.1 M.
- Adjusted EBITDA turned negative in Q4 (‑C$0.1 M) and dropped to C$0.44 M for the year, while adjusted EBITDA margin slipped to 1.7% (down from 1.5% YoY).
- Cash & marketable securities fell to C$16.0 M (including a BTC‑ETF holding of C$3.4 M); total net debt rose to C$25.1 M, pushing the net‑debt/adjusted‑EBITDA ratio to 4.12×.
Key Details
- Q4 FY 2025 Financial Highlights
- Net sales: C$25,034 k (‑27% YoY)
- Gross profit: C$10,087 k; gross margin 40.3% (up 2.2 p.p.)
- SG&A expenses: C$9,890 k (‑23% YoY)
- Reorganization costs: C$1,789 k (↑ 5,162 k YoY)
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Net loss: C$4,074 k; basic & diluted loss per share $0.04
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FY 2025 Full‑Year Financial Highlights
- Net sales: C$120,879 k (‑21% YoY)
- Gross profit: C$50,399 k; gross margin 41.7% (↑ 0.5 p.p.)
- SG&A expenses: C$45,363 k (‑17% YoY)
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Net loss: C$8,095 k; basic & diluted loss per share $0.09
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Adjusted EBITDA
- Q4: C$437 k (‑C$0.1 M vs prior year); margin 1.7% (↑ 0.2 p.p.)
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FY: C$6,093 k; margin 5.0% (down from 5.9% YoY)
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Cash Flow
- Operating cash flow Q4: +C$346 k (vs –C$932 k prior year)
- Adjusted free cash flow Q4: C$1,713 k (vs –C$1,102 k YoY)
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Annual adjusted free cash flow: C$2,237 k (down from C$7,603 k YoY)
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Liquidity & Capital Structure
- Cash & equivalents: C$12,345 k (down from C$24,010 k)
- Convertible debentures liability: C$40,871 k (down from C$45,405 k)
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Total net debt: C$25,101 k (↑ C$2.6 M YoY)
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Operational Highlights
- Launch of “Heat & Eat” meals and expansion of “Genuine Tea” product line contributed to a modest gross‑margin improvement despite lower sales volume.
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Ongoing leadership transition and operational review aimed at cost discipline, margin resilience, and potential selective acquisitions.
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Outlook & Guidance
- Management expects continued pressure from food‑input inflation, labour, packaging and logistics costs into FY 2026.
- Focus remains on achieving profitable growth without reliance on macro recovery, leveraging new product mix and possible strategic acquisitions.
Notable Quotes
“We maintained a solid gross margin of 42% and delivered positive Adjusted EBITDA for both the full year and the fourth quarter… Our operational review is focused on building an even more disciplined, flexible and margin‑resilient business.” – Neil Cuggy, President & COO
“We are positioning the business to operate profitably without relying on a macro recovery… while we continue to pursue select acquisitions that strengthen our platform.” – Selim Bassoul, Chair of the Board
The release includes a conference call scheduled for Nov 27, 2025 at 8:00 AM ET; full MD&A and financial statements are available on SEDAR+.*