• Goodfood Market Corp. (PNK:GDDFF) reported an EPS of -0.01426, slightly above estimates.
• The firm’s revenue was $35 million, falling just short of the expected $36 million, yet they achieved a gross margin of 39.6%.

Goodfood Market Corp. (PNK:GDDFF) stands out as a leading Canadian online meal solutions provider, offering a selection of meal kits and ready-to-eat meals to meet the demand for convenient food options. Despite facing intense competition, Goodfood has carved a niche for itself within the Canadian food market, and its Q1 2025 earnings highlight its financial standing during these turbulent times.

On January 21, 2025, Goodfood reported an earnings per share (EPS) of -0.01426, slightly trailing the estimate of -0.01427. Although the company’s revenue reached $35 million, it fell short of the anticipated $36 million. Goodfood accomplished a gross profit of $14 million, reflecting a gross margin of 39.6%.

The company incurred a net loss of $1.7 million but maintained an adjusted EBITDA of $2 million, yielding an adjusted EBITDA margin of 4.7%. This performance signals that Goodfood is successfully generating positive cash flow from its daily operations, even amidst challenging consumer demand circumstances within Canada. The company also reported cash flows from operating activities totaling $2 million and adjusted free cash flow of $2 million for the quarter.

Goodfood’s financial stability is complemented by a solid cash reserve of $21 million, having successfully executed the acquisition of Genuine Tea and fully repaid a term loan. The total net debt to adjusted EBITDA ratio is 2.64, highlighting a manageable debt load compared to earnings. The current ratio stands at a modest 1.04, indicating a slightly favorable short-term financial position, with current assets exceeding current liabilities.

Despite reporting a negative price-to-earnings (P/E) ratio of -10.96, Goodfood’s price-to-sales ratio of 0.25 signifies that the market currently values the company at only 25 cents for every revenue dollar. The enterprise value to sales ratio reads 0.48, while the enterprise value to operating cash flow ratio is 9.81, revealing how operational cash flow measures up against the overall company valuation.