EMERGE Commerce (ECOM) Q2 2025 earnings summary

Executive summary

• Achieved 70% year-over-year revenue growth to $8.5M in Q2 2025, marking the fifth consecutive quarter of revenue growth and second consecutive quarter of positive adjusted EBITDA.

• Cash position increased to $3.5M at quarter-end, despite a $1.1M outlay for the Tee 2 Green (T2G) acquisition, supported by $2M in cash flow from operations.

• Net income from continuing operations improved to $201K from a net loss of $620K in Q2 2024; excluding a non-cash inventory adjustment, net income would be $583K.

• Strategic focus on grocery and golf verticals, leveraging market-leading brands and a proven acquisition playbook, with T2G delivering immediate synergies and exceeding purchase price within 90 days.

• Q2 is seasonally strong for golf, further boosted by T2G and favorable deal structuring.

Financial highlights

• Revenue rose 70% to $8.5M, up from $4.98M in the prior year, with gross profit at $3.1M; excluding a $0.38M non-cash adjustment, gross profit would be $3.5M with a 41% margin.

• Adjusted EBITDA reached $958K, a $1M improvement year-over-year, compared to a loss of $40K in Q2 2024.

• Gross merchandise sales (GMS) grew 39% to $11.4M year-over-year.

• Cash on hand at June 30, 2025, was $3.5M, up from $2.3M a year earlier.

• T2G generated $6.4M revenue, $1M adjusted EBITDA, and $700K net income in 2024 (unaudited).

Outlook and guidance

• Management expects double-digit revenue growth and positive adjusted EBITDA in Q3 2025, with continued operational momentum in grocery and golf.

• Focus remains on organic growth, extracting synergies, advancing accretive acquisitions, and reducing interest expense.

• truLOCAL is expected to benefit from the buy Canadian movement, with continued organic growth despite seasonal headwinds.

• Golf vertical, including T2G, is projected to maintain strong double-digit growth due to its recession-friendly model.

• Plans to accelerate revenue growth, reactivate accretive M&A, and enhance cash flow and shareholder value.