08:27 AM EDT, 07/22/2025 (MT Newswires) -- Goodfood Market ( GDDFF ) , a Canadian online meal solutions company, on Tuesday reported in line earnings for the third quarter as sales fell, but still beat expectations.

The company reported net income of less than $0.1 million for the three months ended June 7, compared with $0.3 million, a year-ago. Net income per basic and diluted share was breakeven in Q3 and in the prior-year period. Goodfood said net income was primarily driven by lower profitability as a result of lower net sales partially offset by lower selling, general and administrative expenses.

Net sales for the quarter decreased to $30.7 million versus $38.6 million a year earlier, but it did beat a FactSet forecast of $30.5 million, as per one analyst.

The company said the drop this quarter was due to a decrease in active customer driving lower orders, partially offset by an increase in average order value and also partially offset by Genuine Tea's net sales as well as the impact of Heat-and-Eat sales in the third quarter of fiscal 2025.

"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," said Chief Executive Jonathan Ferrari.

"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,"

Shares of the company closed down 22% to $0.19 on Monday on the Toronto Stock Exchange.