Fresh Factory loses $330,000 (U.S.) in Q3 2025
Executive Summary
- Record Q3 2025 billed revenue of US$11.7 M (up 44% YoY) and positive EBITDA of US$0.4 M, the first profitable quarter in the year.
- Secured a three‑year US$4.0 M revolving asset‑based lending facility and signed a 10‑year lease for a 154,000 sq ft manufacturing space to support capacity expansion.
- Renewed its Normal Course Issuer Bid (NCIB) authorizing repurchase of up to 3.7 M subordinate voting shares (≈10% float) over the next 12 months.
Key Details
- Revenue & Profitability
- Q3 2025 billed revenue: US$11.7 M (CA$16.7 M), vs. US$8.1 M in Q3 2024 (+44%).
- Adjusted EBITDA Q3 2025: US$0.66 M (CA$0.90 M); positive EBITDA for the quarter of US$0.40 M.
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Net income Q3 2025: –US$330,000 vs. +US$50,000 in Q3 2024; loss driven by higher facilities/maintenance costs and a one‑time US$200,000 equipment disposal loss.
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Year‑to‑Date (YTD) 2025 vs. 2024
- Billed revenue YTD: US$33.4 M vs. US$23.9 M (+40%).
- Adjusted EBITDA YTD: US$2.5 M vs. US$1.1 M (+77%).
- Adjusted gross margin YTD: US$12.5 M vs. US$8.9 M (+40%).
- Net income YTD: +US$126,003 vs. net loss of –US$165,031 in 2024.
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Units produced YTD: 64.4 M (↑229% YoY).
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Financing
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Three‑year revolving asset‑based lending facility: US$4.0 M committed, providing additional working‑capital flexibility for growth initiatives.
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Operational Expansion
- New lease: 154,000 sq ft facility in Chicago suburbs (10‑year term) to consolidate operations and increase capacity across condiments, dips, beverages, and hot‑fill categories.
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Production upgrades: added snack‑bite capacity and new sachet‑pouch‑filling lines; unit production Q3 2025 rose 227% YoY to 29.9 M units.
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Capital Management – NCIB
- TSX‑V approval to renew Normal Course Issuer Bid.
- Authorization to repurchase up to 993,161 shares (≈10% of float) between 2 Dec 2025 and 1 Dec 2026; max 2% in any 30‑day period.
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Purchases will be executed via open market transactions through Clarus Securities Inc.; proceeds sourced from working capital.
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Sustainability Initiatives
- Installed high‑efficiency HVAC systems in the new facility to lower energy use.
- Continued 100% composting of food waste.
Notable Quotes
“Q3 was a pivotal quarter for us, highlighted by record revenue, positive EBITDA and meaningful progress in scaling our snacks platform,” said Bill Besenhofer, CEO & Co‑founder. “With new lines on‑line, a significantly larger facility secured and enhanced liquidity from our credit facility, we're positioned to grow alongside our partners and accelerate innovation across categories.”