Innovative Food Holdings (IVFH) investor relations material

Executive summary

• Revenue for Q1 2026 was $12.2 million, down 19% year-over-year, driven by declines across all distribution channels due to customer attrition, competition, and operational transitions.

• Operating income rose to $351 thousand from $260 thousand in Q1 2025, and net income from continuing operations increased to $343 thousand from $254 thousand.

• Adjusted EBITDA was $441 thousand, down from $593 thousand in Q1 2025, reflecting ongoing operational improvements and cost discipline.

• Discontinued operations, including the specialty cheese business, reported net income of $1.5 million, primarily from a $2.1 million gain on the sale of the Pennsylvania facility.

• Sale of the Pennsylvania facility eliminated nearly all debt, reduced interest expense by $850 thousand annually, and strengthened the balance sheet.

Financial highlights

• Revenue: $12.2 million (down 19% year-over-year).

• Gross margin: 25.6% (down from 26.1% year-over-year).

• Operating income: $351 thousand (up from $260 thousand in Q1 2025).

• Net income from continuing operations: $343 thousand (up 35% year-over-year).

• Adjusted diluted EPS: $0.010 (up from $0.007 in Q1 2025).

Outlook and guidance

• Management expects improved operating cash flows following the facility sale and does not anticipate the need to raise additional capital.

• Inflationary pressures on costs are expected to persist through 2026, with ongoing focus on balancing cost increases with customer pricing.

• Disciplined execution, operational stabilization, and pursuit of new customers and vendor relationships are key 2026 priorities.