Goodfood Market Corp., a leading Canadian online meal solutions company, announced Tuesday financial results for the 13 weeks and 39 weeks ended June 7, 2025.
“In the third quarter, we continued to execute with discipline and delivered solid profitability metrics. Our gross margin held strong at over 44%, and we reported another quarter of positive Adjusted EBITDA, marking two and half years of positive Adjusted EBITDA performance. These results were driven by our ongoing focus on operational efficiency and product innovation, which also enabled us to return to positive adjusted free cash flow this quarter. Notably, despite the year-over-year decline in net sales, our customers’ average basket size and net sales per active customer reached all-time highs — a testament to the value our customers are placing on our offerings,” said Jonathan Ferrari, Chief Executive Officer of Goodfood.
“We are particularly encouraged by the early success of our Heat & Eat meals, which have reached $1 million in run-rate revenue without advertising and are currently available only in Quebec. This performance underscores the early product-market fit and growth potential of this new category. In addition, our Bitcoin treasury strategy continues to show promising momentum, contributing positively to our financial performance and balance sheet flexibility this quarter. Finally, Genuine Tea — our first acquisition — is performing well and expanding our reach within high-quality, next generation consumer brands. Together, these initiatives reinforce our strategy of building a differentiated platform of next-generation food brands for Canadian consumers.”
Key financial results:
● Net sales were $31 million, with gross margin reaching 44.3% for a gross profit of $14 million for this
quarter
● Net income of $0.1 million, adjusted EBITDA margin of 8.6% and adjusted EBITDA of $3 million for the quarter
● Cash flows provided by operating activities of $1 million and adjusted free cash flow1 was $0.2 million for the quarter
● Cash balance and marketable securities at $17 million, with Bitcoin Exchange-Traded Fund (BTC) at $3.2 million at quarter-end on initial investment of $3.0 million
● Launch of Heat & Eat meal solutions providing additional delicious options to customers in Quebec; ready for scaling phase in early Fiscal 2026
● Genuine Tea, Goodfood’s first acquisition, continuing to outperform expectations, with sales displaying strong growth and the lease of a new, bigger facility setting the team for further expansion and success
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