The Fresh Factory Reports Record Billed Revenue and Expands Capabilities in Q2 2025

Executive Summary

• The Fresh Factory reported its highest-ever quarterly billed revenue of $11.0M (CAD $15.8M) for Q2 2025, marking a 49% year-over-year increase from Q2 2024.
• The company achieved positive EBITDA of $0.8M (CAD $1.1M) in Q2 2025, a 166% increase from the prior year period, and recorded a net income of $177,988 compared to a net loss in Q2 2024.
• Operational highlights include a 269% year-over-year increase in production units to 19.1M, the completion of the new Downers Grove facility, and the securing of a 10-year lease for a 154,000 sq. ft. facility in Chicago set to open in January 2026.

Key Details

• Q2 2025 Financial Performance:
  • Billed Revenue: $11.0M (CAD $15.8M), up 49% from $7.4M (CAD $10.6M) in Q2 2024.
  • EBITDA: $0.8M (CAD $1.1M), up 166% from $0.3M (CAD $0.4M) in Q2 2024.
  • Net Income: $177,988 (CAD $254,269), compared to a net loss of $113,584 (CAD $162,263) in Q2 2024.
  • Adjusted Gross Margins: $4.0M (CAD $5.7M), up 43% from $2.8M (CAD $4.0M) in Q2 2024.
  • Adjusted Gross Margin Percentage: 36% in Q2 2025 vs. 38% in Q2 2024.
  • Operating Profit: Increased by $0.3M (CAD $0.5M) on a dollar basis; decreased to 16% from 19% on a percentage basis due to higher facilities and maintenance costs at the new facility.
• H1 2025 Financial Performance:
  • Billed Revenue: $21.6M (CAD $30.9M), up 37% from $15.8M (CAD $22.6M) in H1 2024.
  • Adjusted EBITDA: $1.9M (CAD $2.7M), up 58% from H1 2024.
• Operational Metrics:
  • Production Volume: 37.8M units in H1 2025 (up 232% from H1 2024).
  • Q2 2025 Production: 19.1M units (up 269% from Q2 2024 and 22% from Q1 2025).
• Strategic Developments:
  • Completed construction at the new Downers Grove facility, including an expanded R&D lab.
  • Secured a 10-year lease for a 154,000 sq. ft. facility in the southwest suburbs of Chicago, operational in January 2026.
  • Expanded capabilities for better-for-you snacks and pastries; launched a salad dressing line extension with an existing account.
  • Mike Weglarz assumed roles of Chief Financial Officer and Head of Strategic Growth as part of a planned succession.
  • Initiated measurement of Scope 1 and Scope 2 emissions for 2024; continued composting 100% of food waste.
• Corporate Governance:
  • Board approved an amendment to the rolling 10% stock option plan to remedy a clerical error regarding the maximum number of shares issuable.
  • Shareholder and TSXV approval required for the Amended Plan, to be presented at the annual and special meeting expected on October 9, 2025.

Notable Quotes

• "We're proud to deliver another record quarter with strong revenue growth, positive EBITDA, and sustained momentum across our platform," said Bill Besenhofer, CEO and co-founder of The Fresh Factory. "With our Downers Grove facility complete and expanded capabilities in place, we're entering the next stage of growth as we scale operations, deliver greater value for our brand partners, and unlock new opportunities."