BuildDirect Reports Second Quarter 2025 Financial Results

Executive Summary

• BuildDirect reported Q2 2025 revenue of $16.86M, a 4.2% increase year-over-year, with gross margins expanding to 39.9% (up 170 bps).
• The company generated $0.6M in adjusted EBITDA and $0.14M in net income for the quarter, marking the 14th consecutive quarter of positive adjusted EBITDA performance.
• The release highlights a subsequent C$7.0 million private placement closed on August 1, 2025, providing capital for organic growth and M&A.

Key Details

• Q2 2025 Financial Performance:
  • Revenue: $16,860,359 (vs. $16,182,846 in Q2 2024).
  • Gross Profit: $6,723,013 (Gross Margin: 39.9% vs. 38.2% in Q2 2024).
  • Adjusted EBITDA: $602,473 (vs. $578,326 in Q2 2024).
  • Net Income: $138,458 (vs. Net Loss of $517,029 in Q2 2024).
  • Cash Flow from Operating Activities: $529,253 (vs. $88,952 in Q2 2024).
• Segment Performance (Q2 2025):
  • E-Commerce: Revenue of $3,655,890 (22% of total), Gross Profit of $1,824,305 (49.9% margin).
  • Pro Centers: Revenue of $13,204,469 (78% of total), Gross Profit of $4,898,708 (37.1% margin).
• Balance Sheet Highlights (as of June 30, 2025):
  • Cash and Cash Equivalents: $4,070,963 (up from $2,347,491 at Dec 31, 2024).
  • Working Capital: $3,604,114 (up from $2,712,617 at Dec 31, 2024).
  • Total Assets: $29,582,247.
  • Total Liabilities: $27,088,440.
  • Shareholders' Equity: $2,493,807.
• Subsequent Event (Financing):
  • On August 1, 2025, BuildDirect closed a non-brokered private placement for gross proceeds of C$7.0 million.
  • Issued 6,087,173 common shares at C$1.15 per share.
  • Participants included Sun Mountain Partners, IFCM Microcap Fund, and existing major shareholders.
• Six-Month Performance (H1 2025):
  • Revenue: $31,949,205 (vs. $31,772,698 in H1 2024).
  • Adjusted EBITDA: $1,252,577 (vs. $1,082,566 in H1 2024).
• Outlook:
  • Management intends to expand the Pro Center footprint in the U.S. and Canada.
  • Pursuing selective accretive M&A opportunities in flooring and building materials.
  • Leveraging e-commerce platforms for operational efficiency.

Notable Quotes

• "Our Q2 results highlight the resilience of our business model as revenue grew 4.2% year-over-year and gross margins expanded to nearly 40%, marking another quarter of positive adjusted EBITDA," said Shawn Wilson, CEO of BuildDirect.
• "With the successful completion of our C$7 million financing, backed by a strong group of strategic investors and long-term shareholders, we are well-positioned to accelerate growth both organically and through disciplined M&A."