Colabor Group (GCL) Q2 2025 earnings summary

Executive summary

• Sales rose 5.1% year-over-year to $169.5 million in Q2 2025, driven by the Alimplus acquisition and major account growth, while wholesale revenues declined 1.8% due to restaurant industry headwinds and less favorable contract renewals.

• Net loss was $2.3 million (loss of $0.02/share) in Q2 2025, compared to net earnings of $1.7 million ($0.02/share) in Q2 2024, mainly due to lower adjusted EBITDA and higher amortization and non-recurring costs.

• Adjusted EBITDA from continuing operations was $5.4 million (3.2% margin), down from $9.7 million (6.0% margin) in Q2 2024.

• Completed acquisition of Alimplus and Tout-Prêt for up to $49.75 million, expanding presence and customer base in Quebec, with integration and synergy realization progressing as planned.

• Cybersecurity incident in July 2025 disrupted legacy operations and internal IT systems, with most operations restored and ongoing forensic investigation.

Financial highlights

• Q2 2025 consolidated sales reached $169.5 million, up from $161.2 million in Q2 2024.

• Distribution revenues increased 7.5% year-over-year, driven by acquisition and organic growth; wholesale revenues declined 1.8%.

• Adjusted EBITDA margin dropped to 3.2% from 6.0% year-over-year.

• Cash flow from operations was $4.5 million, down from $5.0 million year-over-year; CapEx was $700,000.

• Gross margin decreased to around 16% from 18.6% year-over-year.

Outlook and guidance

• Margin improvement anticipated through disciplined product/customer mix and realization of acquisition synergies, with focus on profitability and debt reduction in the second half of 2025.

• Annual CapEx expected to be no more than $2 million, slightly lower than last year.

• Seasonal trends and increased local vacationing expected to benefit restaurant and food service volumes in Q3 and Q4.

• Leverage expected to remain temporarily elevated post-acquisition, with plans to deleverage over the next year.

• Acquisition expected to drive differentiation and growth in a competitive market.