Goodfood Market (FOOD) investor relations material

Executive summary

• Q2 2026 performance was negatively impacted by a temporary CFIA license suspension, leading to lower order rates, reduced active customers, and decreased sales.

• Strategic reset underway, focusing on simplifying operations, enhancing product offerings, and disciplined cost management.

• CEO and President voluntarily forwent base salaries for fiscal 2026 to reinforce accountability during transformation.

• Cost discipline measures included reduced marketing and headcount, with a focus on margin protection and core profitability.

• Outgoing CFO recognized for financial stewardship during a period of transition.

Financial highlights

• Net sales for Q2 2026 were $22.5 million, down 26% year-over-year, with active customers at 59,000, reflecting the license disruption and reduced marketing.

• Gross profit was $7 million, with a gross margin of 30.6%, a 12 percentage point decline from Q2 2025.

• Adjusted EBITDA was negative at -$1 million, with margin falling to -4.4% from 4.5% a year ago.

• Net loss widened to $6.8 million from $2.4 million in the prior year quarter.

• Cash and marketable securities at quarter-end totaled $9.4 million, down 51% year-over-year.

Outlook and guidance

• No assumption of near-term demand recovery; focus remains on cash generation, liquidity preservation, and disciplined capital allocation.

• Product revamp and operational simplification aimed at stabilizing top and bottom lines, with selective expansion into adjacent food categories.

• Management is actively evaluating financial alternatives to enhance long-term value.