EMERGE Commerce Ltd., a Canadian portfolio of premium brands, announced Wednesday its financial results for the three months ended June 30.
EMERGE is a Canadian e-commerce and retail portfolio of premium brands. Its subscription, marketplace, and retail businesses provide members with access to offerings across grocery and golf verticals. truLOCAL is the flagship Canadian meat and seafood subscription service, connecting local farmers with a health-conscious audience. Its golf vertical includes discounted tee-times/ experiences brand, UnderPar, and discounted golf apparel and equipment brands, JustGolfStuff and Tee 2 Green.
Q2 2025 Financial Highlights
For the second quarter of 2025, compared to the second quarter of 2024:
- Revenue grew to $8.5M vs. $4.98M, an increase of 70% YoY, marking the 5th consecutive quarter of revenue growth. Both grocery and golf verticals achieved positive organic growth
- Gross profit grew to $3.1M vs. $2.1M. Excluding $382K fair value of inventory adjustment in relation to T2G, a non-cash item, gross margin would be approximately 41.0% vs. 41.3%
- Adj. EBITDA improved to $958K vs. ($40K), an increase of $1M YoY, marking the 2nd consecutive quarter of positive Adj. EBITDA and our strongest result since re-focusing EMERGE around Grocery and Golf verticals
- Net Income from continuing operations improved to $201K vs. ($623K). Excluding $382K fair value of inventory adjustment in relation to T2G, a non-cash item, net income from continuing operations would be $583K
- Cash flow from operations of $2M vs. ($0.2M) in Q2 2024
- Cash position grew to $3.5M (June 30, 2025) vs. $2.7M (March 31, 2025) and $2.2M (June 30, 2024). Cash grew quarter-over-quarter, despite the $1.1M spent to close the T2G acquisition in early Q2
“Q2 was a break-through quarter for the Company. We drove exceptional revenue growth, profitability and cash flow generation,” said Ghassan Halazon, Founder and CEO, EMERGE.
“We closed the transformative acquisition of T2G, and subsequently super-charged that brand, historically a low growth business, to high double-digits in its first quarter under EMERGE, leveraging our digital ads playbook and cross-brand synergies with our golf portfolio.
“We also continued to drive positive organic growth at truLOCAL, a benefactor of the “Buy Canadian” consumer sentiment. Special thanks to our team, Board, and trusted partners on a standout quarter of operational execution and strategic precision. We plan to remain disciplined, focused and opportunistic in the quarters and years ahead.”
On April 4, EMERGE closed the acquisition of Tee 2 Green, a profitable, discount golf apparel and equipment business with a 38-year track record of retail operations, focused on the Canadian market. T2G achieved revenue of $6.4M, Adjusted EBITDA of $1M and net income of $700K in 2024 (unaudited).
EMERGE utilized the cash proceeds from the Carnivore Club asset sale, as well as the previously announced sale of the premium, dormant SHOP domains to Shopify towards closing the T2G acquisition.
T2G’s first quarter under EMERGE ownership, Q2 2025, delivered exceptional organic revenue growth and profitability, exceeding management’s expectations. The strong performance was fueled by EMERGE’s targeted digital advertising and cross-brand synergies within its golf vertical. Cash flow generated by T2G in its first quarter under EMERGE comfortably exceeded the $1.1M upfront cash payment made by EMERGE to complete the transaction, said the company.
Q3 2025 Outlook
For Q3 2025, EMERGE management is seeing continued operational momentum QTD, and expects to achieve another quarter of double-digit revenue growth, and positive Adjusted EBITDA, it said.
truLOCAL is expected to continue to be a benefactor of the “Buy Canadian” sentiment. Its discounted golf experiences and products vertical is expected to continue to gain from the weakening macro climate given the recession-friendly nature of the business model, it added.
Acquisition Pipeline
“Building off our early success acquiring and accelerating T2G, EMERGE is selectively advancing accretive acquisition opportunities, specifically in the grocery and golf verticals, where we have amassed deep expertise, bench strength, brand awareness and substantial customer databases. EMERGE’s focus is exclusively on profitable acquisition candidates with $750K-$2M in Adj. EBITDA, with a long-standing track record of revenue stability and cash flow generation,” it explained.
Top Priorities
The company said its top priorities in the near-term are to i) continue to drive organic revenue growth, ii) extract synergies to drive profitability, iii) explore accretive tuck-in acquisition opportunities in the grocery and golf verticals; and iv) opportunistically explore avenues to enhance cash flow and reduce interest expense.
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