E-commerce company EMERGE Commerce Ltd. reported higher revenue, gross profit and adjusted EBITDA in the second quarter, while its cash position also improved year over year.
The Toronto-based company said Thursday that revenue for the three months ended June 30 rose 7.4 per cent to $9.11 million from $8.48 million a year earlier, marking its ninth consecutive quarter of year-over-year revenue growth. Adjusted EBITDA increased 7.3 per cent to $1.03 million from $958,000, the seventh consecutive quarter of positive adjusted EBITDA.
Gross profit increased 14.8 per cent to $3.55 million from $3.09 million, while gross margin rose to 39 per cent from 36.5 per cent.
EMERGE also reported net income of $199,662 for the quarter, compared with $200,086 a year earlier. Its cash position stood at $4.8 million as of June 30, up from $3.5 million a year earlier.
“Q2 was our strongest quarter in years, across both revenue and Adjusted EBITDA, with positive cash flow generation on full display. The 2026 golf season launched with strength, while Viral Loops contributed meaningfully to our improved gross margins and positive cash flow in its first full quarter under EMERGE. Importantly, all three of our verticals drove positive Adjusted EBITDA. Q2 also provides a more representative view of the underlying business, with T2G having been acquired in early April 2025. We are especially pleased that the business achieved positive cash flow overall in both Q2 and year-to-date, as we continue to build a stronger, more durable EMERGE,” said Ghassan Halazon, founder and CEO of EMERGE.
The quarter included the company’s first full quarter of ownership of Viral Loops, which was acquired March 10, 2026. EMERGE said the referral marketing platform contributed to improved gross margins and positive cash flow.
Gross merchandise sales rose to $11.82 million in the quarter from $11.44 million a year earlier. For the first six months of 2026, revenue was $15.02 million, compared with $13.51 million in the same period of 2025, while adjusted EBITDA increased to $1.15 million from $990,315.
The company said it expects another quarter of revenue growth and positive adjusted EBITDA in the third quarter.
Management also expects the year-over-year improvement in gross margin seen in the second quarter to continue into the third quarter. EMERGE attributed part of the improvement to higher margins from Viral Loops and the conclusion of fair-value inventory accounting at Tee 2 Green, or T2G, which the company said adversely affected gross margins for most of 2025.
EMERGE said it continues to make targeted investments across its portfolio and at its headquarters to support organic and acquisition-related growth.
The company noted that the third quarter is seasonally strong for its golf business, particularly T2G, while its truLOCAL business typically experiences a slower period during the summer holiday season. Viral Loops has less pronounced seasonality, it said.
Debt refinancing is also a priority. EMERGE said it is making progress toward refinancing its senior debt and believes its improved financial position puts it in a stronger position to obtain a lower-cost, longer-term financing facility.
The company identified four near-term priorities: driving organic growth, finding synergies and savings to improve profitability, exploring ways to increase cash flow and reduce interest expense, and pursuing accretive strategic or tuck-in acquisitions.
EMERGE operates e-commerce businesses across direct-to-consumer and business-to-business segments. Its direct-to-consumer portfolio includes grocery and golf businesses, while its business-to-business segment includes Viral Loops.
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