Goodfood Reports Third Quarter of 2025 Results with Net Sales of $31 million, Gross Profit of $14 million and Adjusted EBITDA Superscript 1 of $3 million

Executive Summary

• Goodfood Market Corp. reported financial results for the third quarter (13 weeks) and year-to-date (39 weeks) ended June 7, 2025, showing a decline in net sales but maintaining positive Adjusted EBITDA for the quarter.
• Net sales decreased 20% year-over-year to $30.7 million in Q3, driven by a reduction in active customers due to economic uncertainty and tariff concerns, partially offset by higher average order values.
• The company highlighted strategic growth initiatives, including the launch of "Heat & Eat" meal solutions in Quebec, the continued success of its first acquisition, Genuine Tea, and a Bitcoin treasury strategy that contributed to its balance sheet.

Key Details

• Q3 Fiscal 2025 Financials (13 weeks ended June 7, 2025):
  • Net Sales: $30.7 million (down 20% from $38.6 million in Q3 2024).
  • Gross Profit: $13.6 million with a Gross Margin of 44.3% (up from 44.0% in Q3 2024).
  • Net Income: $0.054 million (down from $0.307 million in Q3 2024).
  • Adjusted EBITDA: $2.65 million (down from $3.56 million in Q3 2024) with an Adjusted EBITDA Margin of 8.6%.
  • Cash Flow: Operating cash flow of $0.6 million; Adjusted Free Cash Flow of $0.16 million.
• Year-to-Date Financials (39 weeks ended June 7, 2025):
  • Net Sales: $95.8 million (down 19% from $118.8 million in the same period of 2024).
  • Net Loss: $(4.0) million (compared to a net loss of $(0.3) million in the prior year period).
  • Adjusted EBITDA: $5.7 million (down from $8.6 million in the prior year period).
• Balance Sheet & Capital Structure:
  • Cash and Cash Equivalents: $13.7 million.
  • Marketable Securities: $3.2 million (including a Bitcoin ETF investment with an initial investment of $3.0 million).
  • Total Debt: $40.4 million (primarily convertible debentures); Total Net Debt: $23.5 million.
  • Total Net Debt to Adjusted EBITDA ratio: 3.82 (up from 2.12 in the prior year).
• Operational Updates & Strategy:
  • Heat & Eat Launch: Launched meal solutions in Quebec, reaching a $1 million run-rate revenue without advertising; planned for scaling in early Fiscal 2026.
  • Genuine Tea Acquisition: The company's first acquisition is outperforming expectations with strong sales growth; the team has leased a new, larger facility for expansion.
  • Customer Metrics: Despite a decline in active customers, the average basket size and net sales per active customer reached all-time highs.
  • Product Strategy: Introduction of a new "Value plan" starting at $9.99 per portion and increased protein customization options.
  • Sustainability: Received B Corp certification; focus on reducing food waste and carbon emissions.
• Conference Call: Scheduled for July 22, 2025, at 8:00 AM Eastern Time.

Notable Quotes

• "In the third quarter, we continued to execute with discipline and delivered solid profitability metrics. Our gross margin held strong at over 44%, and we reported another quarter of positive Adjusted EBITDA, marking two and half years of positive Adjusted EBITDA performance." — Jonathan Ferrari, CEO
• "We are particularly encouraged by the early success of our Heat & Eat meals, which have reached $1 million in run-rate revenue without advertising... This performance underscores the early product-market fit and growth potential of this new category." — Jonathan Ferrari, CEO