EMERGE Commerce (ECOM) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue grew 58% year-over-year to CAD 7 million, marking the sixth consecutive quarter of positive organic growth, driven by strong performances in both grocery and golf segments, especially Tee 2 Green.

• Adjusted EBITDA improved to $261,000, a $514,000 positive swing year-over-year, and year-to-date adjusted EBITDA reached $1.25 million, compared to a loss of $485,000 in 2024.

• Net income from continuing operations was $26,000, compared to a net loss of $730,000 in Q3 2024; excluding a non-cash inventory adjustment, net income would have been $193,000.

• Cash position increased to $4.1 million as of September 30, 2025, up $2.5 million year-over-year, supported by strong operating cash flow.

Financial highlights

• Gross merchandise sales (GMS) grew 27% to $9.3 million, up from $7.3 million in Q3 2024.

• Gross profit was $2.4 million, or $2.6 million excluding a non-cash inventory increment, with gross margin at 37% versus 40% last year.

• Positive cash flow from operations of $919,000 in Q3, compared to an outflow of $414,000 in Q3 2024.

• Year-to-date operating cash flow reached $2.5 million, versus a negative $411,000 in the first nine months of 2024.

• For the nine months ended September 30, 2025, total revenue was $28.7 million, up from $22.8 million in the prior year period.

Outlook and guidance

• Management expects double-digit revenue growth and positive adjusted EBITDA in Q4 2025, with strong holiday season performance anticipated at truLOCAL and UnderPar.

• On track to achieve full-year 2025 objectives: strong revenue growth, positive adjusted EBITDA, and positive cash flow for the first time under the new operating model.