Overview

* Goodfood Q3 revenue drops 20% to C$31 mln

* Co, gross margin inch up to 44.3% from 44%, despite lower net sales

* Heat & Eat meals and Genuine Tea acquisition drive growth

Outlook

* Goodfoodready for scaling phase for Heat & Eat meals in early fiscal 2026

* Company aims to maintain positive cash flows and profitability

* Company acknowledges economic uncertainties impacting customer spending

Result Drivers

* DECREASED ACTIVE CUSTOMERS - Economic uncertainties and reduced incentives led to fewer active customers, impacting net sales

* HEAT & EAT MEALS - New product line contributed positively to sales, reaching $1 mln in run-rate revenue without advertising

* GENUINE TEA ACQUISITION - Acquisition supported net sales growth, outperforming expectations

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat C$31 mln C$30.50

Revenue mln (1

Analyst)

Q3 C$3 mln

Adjusted

EBITDA

Q3 Gross 44.3%

Margin

Q3 Gross C$14 mln

Profit

Analyst Coverage

* The one available analyst rating on the shares is "hold"

* The average consensus recommendation for the online services peer group is "buy."

* Wall Street's median 12-month price target for Goodfood Market Corp ( GDDFF ) is C$0.30, about 36.7% above its July 21 closing price of C$0.19

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)