Goodfood Market Corp., a leading Canadian online meal solutions company, announced Thursday financial results for the 13 weeks and 52 weeks ended September 6, 2025, indicating results reflect a challenging environment.
“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 EBITDA for both the full year and the fourth quarter, along with $2.2 million in annual adjusted free cash flow. 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.
“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.”
“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.
Key financial results:
● Net sales were $25 million in the fourth quarter, with gross profit of $10 million and gross margin of
40.3%
● Net loss of $4 million, adjusted EBITDA margin 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 securities at $16 million, with Bitcoin Exchange-Traded Fund (BTC) at $3.4
million at quarter-end on initial investment of $3.0 million
● Strengthening 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
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, explained the company.
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, it said.
“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,” explained Goodfood.
“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.”
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