Net sales were $25 million in the fourth quarter, with gross profit of $10 million and gross margin2 of 40.3%
Net loss of $4 million, adjusted EBITDA margin1 of 2% and adjusted EBITDA1 of $0.4 million for the fourth quarter
Cash flows provided by operating activities of $0.3 million and adjusted free cash flow1 was $2 million for the fourth quarter
Cash and marketable securities3 at $16 million, with Bitcoin Exchange-Traded Fund (BTC) at $3.4 million at quarter-end on initial investment of $3.0 million
Strengthening our product mix driven by the launch of Heat & Eat meal solutions and Genuine Tea which continues to exceed expectations
Leadership transition accompanied by an operational review focused on product evolution and customer experience nearing completion
MONTREAL, Nov. 27, 2025 (GLOBE NEWSWIRE) — Goodfood Market Corp. (“Goodfood“, “the Company“, “us“, “we” or “our“) (TSX:FOOD), a leading Canadian online meal solutions company, today announced financial results for the 13 weeks and 52 weeks ended September 6, 2025.
“The results this year reflect a macro environment that remains challenging. Consumer discretionary spend continues to face pressure, and meal-kit demand across North America has not stabilized, yet the business demonstrates ongoing resilience. We maintained a solid gross margin2 of 42% and delivered positive Adjusted EBITDA1 for both the full year and the fourth quarter, along with $2.2 million in annual adjusted free cash flow1. These results reflect the flexibility of our cost structure and the disciplined approach our teams brought to operations throughout the year, in the face of top line headwinds,” said Neil Cuggy, President and Chief Operating Officer of Goodfood.
“We do not expect meaningful near-term improvement in food input inflation, labour costs, packaging, logistics or compliance expenses and we expect these pressures will persist through Fiscal 2026. Our operational review is focused on building an even more disciplined, flexible and margin-resilient business. We are refining our product lineup, tightening costs, and strengthening the customer experience with a clear eye on sustainable profitability and cash flow stability. Goodfood has strong assets and a committed team, and this ongoing operational review will guide sharper, more focused execution going forward,” said Selim Bassoul, Chair of the Board of Goodfood.
“Looking ahead, we remain realistic about the growth outlook for traditional meal kits, as the category continues to contract across North America and globally, and we remain realistic about cost pressures remaining elevated. With that in mind, we are positioning the business to operate profitably without relying on a macro recovery. Both our Heat & Eat products recently launched and Genuine Tea are helping improve our product mix, and we are working to strengthen this foundation as we move forward. While we are approaching the future with prudence, we continue to pursue select acquisitions that strengthen our platform and improve our cost and margin structure,” said Neil Cuggy, President and Chief Operating Officer of Goodfood.
__________________________
1 Please refer to the “Metrics and Non-IFRS Financial Measures” section of this news release for corresponding definitions.
2 Gross margin is defined as gross profit divided by net sales.
3 Cash and marketable securities is defined as the sum of cash, cash equivalents and marketable securities.
RESULTS OF OPERATIONS – FISCAL 2025 AND 2024
The following table sets forth the components of the Company’s consolidated statement of loss and comprehensive loss:
(In thousands of Canadian dollars, except per share and percentage information)
For the 52 and 53 weeks ended
September 6, 2025
September 7, 2024
($)
(%)
Net sales
$
120,879
$
152,838
$
(31,959
)
(21
)%
Cost of goods sold
70,480
89,860
(19,380
)
(22
)%
Gross profit
$
50,399
$
62,978
$
(12,579
)
(20
)%
Gross margin
41.7%
41.2%
N/A
0.5 p.p.
Selling, general and administrative expenses
45,363
54,843
(9,480
)
(17
)%
Depreciation and amortization
5,957
7,381
(1,424
)
(19
)%
Reorganization and other related net costs (gains)
1,789
(1,327
)
3,116
N/A
Net finance costs
5,375
5,514
(139
)
(3
)%
Loss, before income taxes
$
(8,085
)
$
(3,433
)
$
(4,652
)
136%
Income tax expense
10
–
10
N/A
Net loss, being comprehensive loss
(8,095
)
(3,433
)
(4,662
)
136%
Basic and diluted loss per share
$
(0.09
)
$
(0.05
)
$
(0.04
)
80%
VARIANCE ANALYSIS FOR FISCAL 2025 COMPARED TO FISCAL 2024
The decrease in net sales is driven by the decrease in active customer and order rates, driving lower orders partially offset by an increase in average order value. The decrease in active customers can be explained mainly by a decrease in marketing spend and incentive offerings, uncertainties regarding economic outlook and consumer spending driving customers towards spending more carefully and trading down, as well as a more pronounced seasonality in Fiscal 2025. The decrease in net sales was partially offset by Genuine Tea’s net sales in Fiscal 2025.
The decrease in gross profit is driven by lower net sales and higher shipping and packaging costs driven by lower orders compared to the same period last year. This was partially offset by improved average order value as well as decreased credits and incentives as a percentage of net sales. Gross margin increased slightly by 0.5 percentage points mainly driven by higher average order value and lower labour costs partially offset by higher shipping costs.
The decrease in selling, general and administrative expenses is primarily due to lower marketing spend, wages and salaries as well as other general and administrative expenses. Selling, general and administrative expenses as a percentage of net sales increased by 1.6 percentage points from 35.9% to 37.5% primarily driven by lower net sales.
The reorganization and other related net costs in Fiscal 2025 relate to severance related costs compared to net gains in Fiscal 2024 mainly due to reversal of impairment resulting from a sublease agreement.
The decrease in depreciation and amortization is mainly driven by derecognition of right-of-use assets due to sublease agreements.
The increase in net loss is primarily driven by lower profitability as a result of lower net sales as well as restructuring activities partially offset by lower selling, general and administrative expenses and improved gross margin.
RESULTS OF OPERATIONS – FOURTH QUARTER OF FISCAL 2025 AND 2024
The following table sets forth the components of the Company’s consolidated statement of loss and comprehensive loss:
(In thousands of Canadian dollars, except per share and percentage information)
For the 13 and 14 weeks ended
September 6, 2025
September 7, 2024
($)
(%)
Net sales
$
25,034
$
34,063
$
(9,029
)
(27
)%
Cost of goods sold
14,947
21,072
(6,125
)
(29
)%
Gross profit
$
10,087
$
12,991