Goodfood Market (FOOD) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 net sales were $121 million, down 21% year-over-year, with a net loss of $8.1 million and adjusted EBITDA of $6.1 million for the year, marking eleven consecutive quarters of positive adjusted EBITDA.

• Leadership transition with Selim Bassoul joining as Chairman in August 2025, and an operational review focused on product evolution, customer experience, and acquisitions.

• Product mix improved with the launch of Heat & Eat meals and Genuine Tea, supporting basket value growth and diversification.

• Acquisition of Genuine Tea proved growth and margin accretive, supporting the M&A strategy for future growth.

• Achieved positive adjusted free cash flow for the year and in six of the past eight quarters.

Financial highlights

• Fiscal 2025 net sales were $120.9 million, down 21% year-over-year; gross profit was $50.4 million, down 20%.

• Gross margin for fiscal 2025 was 41.7%, up 0.5 percentage points year-over-year; Q4 gross margin was 40.3%, up 2.2 points.

• Adjusted EBITDA for the year was $6.1 million (5.0% margin), down from $9 million (6% margin) year-over-year.

• Adjusted free cash flow for the year was $2.2 million, down from $7.6 million; Q4 adjusted free cash flow was $1.7 million, up from negative $1.1 million.

• Cash and marketable securities at year-end totaled $16 million, including $3.4 million in Bitcoin ETF holdings.

Outlook and guidance

• Operational review underway, focusing on product evolution, customer experience, and acquisitions, with continued cost structure resilience amid ongoing meal kit demand challenges.

• Heat-and-knead/Heat & Eat product line nearing $4 million in annualized sales and growing rapidly.

• No expectation of near-term improvement in input inflation, labor, packaging, or logistics costs; cost pressures expected to persist through fiscal 2026.

• M&A strategy to build a portfolio of cash flow-generating businesses leveraging existing infrastructure.

• Headwinds in meal kit demand expected to persist, with stabilization not yet visible in North America.