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 revenue growth, driven by strong performances in both grocery and golf verticals, especially Tee 2 Green and truLOCAL.

• Adjusted EBITDA turned positive at $261,000, a $514,000 improvement year-over-year, and marked the third consecutive quarter of positive Adjusted EBITDA; year-to-date adjusted EBITDA reached $1.25 million versus a loss of $485,000 last year.

• Net income from continuing operations improved to CAD 20,000 from a net loss of CAD 700,000; excluding non-cash adjustments, net income would have been CAD 190,000.

• Cash position increased to CAD 4.1 million as of September 30, 2025, up from CAD 1.6 million a year ago, supported by strong operating cash flow of CAD 920,000 in Q3.

• Streamlined capital structure with 24.5 million warrants expired unexercised, 2.7 million out-of-the-money warrants exercised, and significant debt reduction.

Financial highlights

• Gross merchandise sales (GMS) rose 27% to CAD 9.3 million from CAD 7.3 million year-over-year.

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

• Adjusted EBITDA improved by approximately $500,000 to $260,000 from a loss of $250,000 in the prior year.

• Cash generated from operations in Q3 was CAD 920,000, compared to a cash outflow of CAD 411,000 last year.

• 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 the Q4 holiday season anticipated to drive high sales volumes, especially for truLOCAL and UnderPar.

• Full-year 2025 is on track for strong revenue growth, positive adjusted EBITDA, and positive cash flow for the first time under the new operating model.