EMERGE Commerce (ECOM) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered 8% revenue growth to CAD 5 million, marking the fourth consecutive quarter of positive organic revenue growth.

• First positive adjusted EBITDA of CAD 32,000 under the EMERGE 2.0 strategy, compared to a loss of CAD 191,000 in Q1 2024.

• Net loss from continuing operations improved to CAD 20,000 from CAD 82,000 year-over-year.

• Sale of Carnivore Club for CAD 500,000 in January 2025, now classified as discontinued operations.

• Acquisition of T2 Green Limited (T2G) closed in April 2025, expected to be highly synergistic and accretive from Q2 onward.

Financial highlights

• Gross merchandise sales (GMS) grew 8.3% year-over-year to CAD 8 million.

• Gross profit was CAD 1.94 million, slightly down from CAD 1.97 million year-over-year.

• Net income was CAD 0.4 million, down from CAD 0.48 million in the same quarter last year.

• Cash on hand as of March 31, 2025, was CAD 2.7 million.

• Basic and diluted loss per share from continuing operations was $(0.00002), improved from $(0.00066) year-over-year.

Outlook and guidance

• Q2 2025 trends are stronger than expected, with management anticipating accelerated double-digit revenue growth and strong positive adjusted EBITDA.

• T2G's inclusion from Q2 is expected to enhance revenue, profitability, and cash flow, strengthening the balance sheet and potentially improving cost of capital.

• Top priorities for 2025 include accelerating revenue growth, extracting operational efficiencies, and reducing interest expense.