Goodfood Market Corp., a leading Canadian online meal solutions company, announced Tuesday its financial results for the 13 weeks ended December 6, 2025, with net sales dropping by 21% from a year ago while gross profit declined by 15%.
There was a net loss of $3 million compared to $2 million in the same period last year.
“The first quarter marks a clear step in stabilizing the business in a still-challenging operating environment, and despite these conditions, we delivered a 42.3% gross margin, positive adjusted EBITDA and $1.2 million of adjusted free cash flow. These results reflect tighter cost controls, improved execution and a
deliberate focus on cash and margins,” said Selim Bassoul, Executive Chairman of Goodfood.
“We are managing the business with a clear-eyed view of the market. The meal solutions category,
particularly meal kits, remains under pressure, and we are not assuming a near-term recovery. Our focus
is building a simpler, more resilient operating model that performs consistently at current volumes.
“Our operational review is nearing completion and is focused on sharpening execution, prioritizing profitable demand and deploying capital where returns are strongest. We are tightening decision-making and accountability across the organization and aligning the business around cash flow and margin performance.
“With the leadership transition almost complete, our priorities are clear: protect margins, generate cash and allocate capital with discipline. Alongside organic improvements, we will remain highly selective on acquisitions that strengthen our platform, improve our cost and margin structure and align with our longterm strategy.”
The company said the decrease in net sales is driven by the decrease in active customer driving lower orders partially offset by an increase in average order value. The decrease in active customers can be explained mainly by lower demand and lesser marketing and incentive offerings.
“The decrease in gross profit is driven mainly by a decrease in net sales as well as higher fulfilment and shipping costs and production labour costs driven by lower fixed cost absorption as a result of lower orders. This decrease was mostly offset by lower incentives as a percentage of net sales as well as an increase in average order value compared to the same quarter last year. Gross margin increased by 2.7% mainly due to improved average order value and lower incentives as a percentage of net sales,” it said.
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