EMERGE Commerce (ECOM) Q4 2025 earnings summary

Executive summary

• Achieved 43% year-over-year revenue growth to CAD 27.7 million for 2025, with Q4 revenue up 35% to CAD 7.1 million compared to Q4 2024.

• Returned to positive Adjusted EBITDA for the year at CAD 1.5 million, a CAD 1.9 million improvement year-over-year, driven by the Tee 2 Green acquisition and improved performance at truLOCAL.

• Generated CAD 2.8 million in annual cash flow from operations, up from CAD 129,000 in 2024 and exceeding management expectations.

• Net income improved to CAD 290,000 for 2025, compared to a net loss of CAD 506,000 in 2024.

• Results were in line with preliminary guidance and driven by strong performance in both Grocery and Golf verticals.

Financial highlights

• Full-year gross profit rose 25% to CAD 9.9 million; Q4 gross profit increased 17% to CAD 2.5 million.

• Cash position at year-end was CAD 4.1 million, up CAD 1 million from the prior year.

• Adjusted EBITDA for Q4 was CAD 205,000, marking the fifth consecutive quarter of positive results.

• Gross Merchandise Sales (GMS) for 2025 reached CAD 39 million, up from CAD 32.05 million in 2024.

• Excluding a CAD 650,000 non-cash inventory adjustment, gross margin was 38.1% versus 41% in 2024.

Outlook and guidance

• Management expects continued strong revenue growth in Q1 2026, with Viral Loops contributing from March 10, 2026.

• Q2 2026 will be the first full quarter to include Viral Loops, coinciding with peak golf season.

• Q1 is seasonally softer for golf but strong for truLOCAL, with elevated marketing spend anticipated.

• Focus remains on profitable organic growth, expanding EBITDA margin, and deploying capital into accretive opportunities.