Goodfood Market Corp., a leading Canadian online meal solutions company, announced Tuesday its financial results for the 13 weeks and 26 weeks ended March 8, 2025, showing strong sales and gross profit.
“I am pleased to report that Goodfood delivered positive Adjusted EBITDA for a ninth consecutive quarter, as our solid operational foundations and the flexibility of our cost structure enabled successfully navigating a persistently challenging consumer demand environment across Canada,” said Jonathan Ferrari, Chief Executive Officer of Goodfood Market Corp. “Despite macroeconomic headwinds impacting consumer behavior and driving more cautious spending, our focus on product innovation, operational discipline, and cost efficiency drove continued profitability on an Adjusted EBITDA basis.
“We also reached a record basket size this quarter, as customers continued to upgrade recipes and add more meals to their baskets. The success of our new Value Plan, which has served as a great entry point for new customers, combined with our ongoing investments in digital enhancements that are reducing friction and improving ease-of-use of new features like protein customization helped drive these record order values. In addition to our focus on driving more value for our customers in these challenging times, we are also finding new ways to bring delicious and healthy convenience to their homes. In recent weeks, we launched our new line of Heat & Eat meals which were made available in select geographies and are off to a strong start with Goodfood members rating our meals with a score of 4.6 out of 5. Heat & Eat meals provide Goodfood with a new growth avenue and expand our target addressable market as we work to expand their availability across the country.
“Looking ahead, our priorities remain clear: to generate sustainable cash flows, de-risk our balance sheet as we did with the repayment in shares of our convertible debentures, maintain strong cost discipline, and scale our digital food platform with differentiated offerings, developed internally or through acquisitions as previously done with Genuine Tea, that meet the evolving needs of our customers. We are encouraged by the progress we have made and confident in our teams’ ability to create long-term value.”
Key results include:
- Net sales were $31 million in the second quarter of 2025, with gross margin reaching 42.6% for a gross profit of $13 million
- Net loss of $2 million, adjusted EBITDA margin of 4.5% and adjusted EBITDA of $1 million for the quarter
- Cash flows used in operating activities of $1 million and adjusted free cash flow was negative $1 million for the second quarter of 2025
- Cash balance and marketable securities at $19 million, with balance sheet further de-risked with repayment of 2025 Debentures on March 31, 2025
- Attained B Corp certification, joining global community of forward-thinking companies using business as a force for good
- Genuine Tea, Goodfood’s first acquisition, performing well and benefitting from “Buy in Canada” movement, as it looks to further build pipeline of deals and complete more acquisitions to expand its platform
“Goodfood’s core purpose is to create experiences that spark joy and help our community live longer on a healthier planet. As a food brand with a strong following from Canadians coast to coast, we are focused on growing the Goodfood brand through our meal solutions including meal kits and prepared meals, with a range of exciting Goodfood branded add-ons to complete a unique food experience for customers,” said the company.
“In recent quarters, our focus has been and continues to be on further growing cash flows, deleveraging and creating experiences that spark joy in Canadians’ kitchens. We are pleased to have now reported nine consecutive quarters of positive adjusted EBITDA. The consistent adjusted EBITDA generated has led to significant deleveraging, with net leverage now standing at 3.83 on a trailing twelve months basis.
“To scale our efforts and capture an increasing share of the Canadian meal solutions market and grow our customer base, we first aimed to build customer acquisition cost efficiencies. We have also made and continue to make investments in our digital product to elevate the customer experience by reducing friction and enhancing ease of use. Combined with reactivations of previous Goodfood members, these initiatives have driven a double-digit percentage reduction of our customer acquisition costs year-over-year and improved the profitability and unit economics of customers.”
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