Toronto-based e-commerce portfolio EMERGE Commerce Ltd. reported strong financial results for the fourth quarter and full year ended December 31, 2024, highlighting significant gains in revenue, profitability, and operational streamlining, while setting the stage for further growth through a key acquisition.
EMERGE is a premium Canadian e-commerce brand portfolio, operating subscription, marketplace, and retail businesses in grocery and golf. Its flagship brands include truLOCAL, UnderPar, JustGolfStuff, and most recently, Tee 2 Green.
“2024 was a transformative year for EMERGE,” said Ghassan Halazon, Founder and CEO of EMERGE. “We executed against our stated priorities with precision. We delivered on our promise to re-ignite organic revenue growth, we streamlined the business under our more focused EMERGE 2.0 strategy, we drastically improved profitability, we substantially reduced our debt, and we grew our cash position year-over-year without a capital raise.”
Fourth Quarter 2024 Highlights
In Q4 2024, EMERGE generated revenue of $5.6 million, up from $5.1 million in Q4 2023. When excluding Carnivore Club, which was sold in January 2025, revenue rose to $5.3 million from $4.6 million, representing a 15% increase. Gross profit for the quarter grew to $2.2 million from $2.1 million, while adjusted EBITDA improved sharply to ($11,000) compared to ($345,000) a year earlier.
Net income from continuing operations was $287,828, a significant turnaround from a loss of $10.7 million in Q4 2023. Overall net income came in at $287,828, compared to a loss of $17.5 million the previous year. EMERGE ended 2024 with $3.1 million in cash, up from $2.5 million.
“Perhaps nowhere was our progress more evident than in Q4, where we delivered double-digit revenue growth, close to breakeven Adjusted EBITDA and positive net income,” said Halazon. “Our stellar results in Q4 were the culmination of the team’s hard work all year long.”
Full-Year 2024 Financial Performance
For the full year, EMERGE posted revenue of $20.4 million, up from $19.6 million in 2023. Excluding Carnivore Club, annual revenue was $19.3 million compared to $17.7 million, reflecting 9% growth. Gross profit rose to $8.2 million from $7.6 million. Adjusted EBITDA improved to a loss of $463,828 from a deeper loss of $1.78 million.
Net loss from continuing operations narrowed to $1.1 million, a marked improvement over the $15.6 million loss in 2023. The total net loss also decreased significantly to $505,740, down from $21.3 million the prior year.
Carnivore Club Divestiture
On January 15, 2025, EMERGE completed the sale of Carnivore Club for $500,000. The company had been phasing out the non-core asset throughout 2024 to focus on its larger, more profitable operations. Future financial reporting starting in Q1 2025 will classify Carnivore Club as discontinued operations.
Acquisition of Tee 2 Green
On April 4, 2025, EMERGE closed the acquisition of Tee 2 Green Ltd. (T2G), a Canadian discount golf apparel and equipment company with a 38-year operating history. T2G reported unaudited 2024 revenue of $6.4 million, adjusted EBITDA of $1 million, and net income of $700,000. EMERGE financed the acquisition using proceeds from the Carnivore Club sale and the previously disclosed sale of dormant SHOP domains to Shopify.
“T2G is expected to be highly synergistic with EMERGE’s extensive golf business, which includes UnderPar and JustGolfStuff, along with a 400,000+ golf subscriber database,” the company said in its announcement.
Debt Refinancing and Improved Terms
Coinciding with the T2G acquisition, EMERGE also announced an amendment to its credit agreement with its existing lender, extending the maturity date by 18 months with an option for an additional 6-month extension. The company expects recent and anticipated interest rate cuts to drive “meaningful cash savings.”
Operational Outlook for 2025
Looking ahead, management says it sees “continued operational momentum year-to-date.” The company’s flagship subscription brand, truLOCAL, is benefitting from the “Buy Canadian” movement, contributing to strong revenue growth and profitability. EMERGE also expects continued strength from its golf vertical given the recession-friendly nature of discount-based models.
“The addition of Tee 2 Green, starting Q2 2025, is expected to substantially enhance the Company’s revenue, profitability and cash flow profile, and in the process, strengthen its balance sheet, and potentially improve its cost of capital over time,” the company noted.
Strategic Priorities
EMERGE outlined three top priorities moving forward:
- Accelerate revenue growth
- Extract further operational efficiencies and synergies
- Opportunistically enhance cash flow and reduce interest expenses
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