Goodfood Market (FOOD) Q1 2025 earnings summary

Executive summary

• Achieved eighth consecutive quarter of positive adjusted EBITDA, reaching $1.6 million with a 4.7% margin, up 1.1 percentage points year-over-year.

• Net sales for Q1 2025 were $34.7 million, down 14% year-over-year, with gross profit of $13.7 million and gross margin of 39.6%, up 0.2 percentage points.

• Adjusted free cash flow was $1.9 million, positive in five of the last eight quarters.

• Net loss improved to $1.7 million from $2.0 million in Q1 2024, with EPS at $(0.02).

• Closed the acquisition of Genuine Tea, diversifying product offerings and supporting a next-generation brand strategy.

Financial highlights

• Active customers ended the quarter at 106,000, down from 124,000 last year but up from 101,000 in Q4 2024.

• Net sales per active customer remained stable at $327 year-over-year.

• Cash flows from operations were $2.2 million, with cash and cash equivalents at $21 million at quarter end.

• Selling, general, and administrative expenses fell 14% year-over-year, driven by lower marketing spend and wages.

• Adjusted EBITDA increased 13% year-over-year, reflecting improved cost management.

Outlook and guidance

• Expecting customer count stability in Q2, potential upside in Q3, and typical seasonal patterns in Q4.

• Focus remains on growing cash flows, sustainable profitability, and strategic capital allocation, including further M&A and Bitcoin accumulation.

• Industry research projects Canadian meal kit household penetration to rise from 3.5% to 4.2% by 2029.

• Continued investment in digital capabilities, product variety, and customer acquisition cost efficiencies.

• Strategic initiatives include new value plans, protein customization, and sustainability efforts.