EMERGE Commerce Ltd. , a premium, Canadian brand portfolio, announced Wednesday its financial results for the three months ended March 31, 2025, indicating increased gross merchandise sales and revenue.
Q1 2025 Financial Highlights
For the first quarter of 2025, compared to the first quarter of 2024:
- Gross Merchandise Sales increased to $8.0M vs. $7.4M, an increase of 7%
- Revenue increased to $5.0M vs. $4.7M, an increase of 8%
- Gross profit of $1.94M vs. $1.96M, a decrease of 1%
- Adjusted EBITDA improved to positive $32K vs. loss of $191K
- Net loss from continuing operations improved to $20K vs. $82K
- Cash on hand at March 31, 2025 was $2.7M
“Q1 2025 was our fourth consecutive quarter of organic revenue growth. Notably, we delivered positive Adjusted EBITDA for the first time under our EMERGE 2.0 strategy, reflecting our improved topline and our streamlined overhead expenses in place, now that the previously announced cost reductions have taken full effect,” said Ghassan Halazon, Founder and CEO, EMERGE.
“Our business model is uniquely positioned to thrive in the current macro backdrop. truLOCAL is a benefactor of the “Support LOCAL” movement sweeping the country, while our discount golf business continues to strengthen in this weakening economy as customers seek out more deals. We are also pleased to share that Q2-to-date, our first quarter including Tee 2 Green results, is exceeding management’s expectations on both revenue growth and profitability overall. Special thanks to our team, Board, and trusted partners on yet another quarter of disciplined execution and sustained operational excellence.”
EMERGE is a premium, Canadian e-commerce and retail brand portfolio. Its subscription, marketplace, and retail businesses provide its members with access to offerings across its grocery and golf verticals. truLOCAL is its flagship Canadian meat and seafood subscription service, connecting local farmers with a health-conscious audience. Its golf vertical includes its discounted tee-times/ experiences brand, UnderPar, and its discounted golf apparel and equipment brands, JustGolfStuff and Tee 2 Green.
On January 15, EMERGE completed the asset sale of Carnivore Club for a total purchase price of $500,000. Carnivore Club was a legacy, non-core asset.
On April 4, EMERGE closed the acquisition of all the issued and outstanding shares of Tee 2 Green Ltd. It said T2G is a profitable, discount golf apparel and equipment business with a 38-year track record of operations, focused on the Canadian market. T2G achieved revenue of $6.4M, Adjusted EBITDA of $1M and net income of $700K in 2024 (unaudited).
“EMERGE utilized the cash proceeds from the Carnivore Club transaction, as well as the previously announced sale of the premium, dormant SHOP domains to Shopify towards closing the T2G acquisition,” it said.
“For Q2 2025, EMERGE management expects to achieve double-digit revenue growth, and strong positive Adjusted EBITDA positive,” said the company. “truLOCAL, our Canadian meat and seafood subscription brand, continues to be a benefactor of the “Buy Canadian” sentiment. Our discounted golf experiences and products vertical is continuing to gain from the weakening macro climate given the recession-friendly nature of the business model, with golf season now in full swing.
“Q2 is the first time EMERGE will include T2G’s results. The addition of T2G, starting Q2 2025, is expected to substantially enhance the Company’s revenue, profitability and cash flow profile, and in the process, strengthen its balance sheet, and potentially improve its cost of capital over time.”
The following financial information has been summarized from the Company’s unaudited condensed consolidated interim financial statements (excluding GMS and Adjusted EBITDA):
| Three months ended March 31, | |||
| 2025$ | 2024$ | ||
| Gross Merchandise Sales1 | 8,008,570 | 7,396,134 | |
| Total revenue | 5,028,958 | 4,654,024 | |
| Adjusted EBITDA1 | 32,299 | (191,851) | |
| Net loss from continuing operations | (21,609) | (82,088) | |
| Net income | 403,120 | 485,808 | |
| Basic and diluted loss per share from continuing operations and total | (0.00002) | (0.00066) | |
| Total assets | 6,585,339 | 7,995,766 | |
| Long-term liabilities | 1,104,733 | 8,235,160 | |
| 1 Non-GAAP Financial Measure. Refer to section “Non-GAAP Financial Measures” for additional information. |
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