Adj. EBITDA improved to $261K, an increase of $514K YoY
Cash position grew to $4.1M, an increase of $2.5M YoY
TORONTO, Nov. 26, 2025 /CNW/ - EMERGE Commerce Ltd. (TSXV:ECOM) ("EMERGE" or the "Company"), a portfolio of premium brands, today announced its financial results for the three months ended September 30, 2025. Copies of the interim Financial Statements and MD&A are available on the Company's profile on SEDAR at www.sedar.com.
Q3 2025 Financial Highlights
For Q3 2025, compared to Q3 2024:
Revenue grew to $7.0M vs. $4.4M, an increase of 58% YoY, marking the 6th consecutive quarter of revenue growth. Both grocery and golf verticals achieved positive organic growth
Gross profit grew to $2.4M vs. $1.8M. Excluding $167K fair value of inventory adjustment related to T2G, a non-cash item, gross margin would be approximately 37% vs. 40%
Adj. EBITDA(1) improved to $261K vs. Adj. EBITDA loss of $254K, an increase of $514K YoY, marking the 3rd consecutive quarter of positive Adj. EBITDA(1)
Net Income improved to $26K vs. net loss of $730K. Excluding $167K fair value of inventory adjustment related to T2G, a non-cash item, net income would be $193K
Cash flow from operations of $919K vs. ($411K) in Q3 2024, an increase of $1.3M YoY
Cash position grew to $4.1M (September 30, 2025) vs. $1.6M (September 30, 2024), a $2.5M increase YoY
Ghassan Halazon, Founder and CEO, EMERGE commented, "Q3 was another statement quarter for EMERGE. We delivered 58% year-over-year revenue growth, our third consecutive quarter of positive Adjusted EBITDA(1), and most importantly, exceptional cash flow generation, even in what is typically a more seasonal quarter for some of our brands. Both our grocery and golf verticals exhibited positive organic growth once again, and our cash position continued to strengthen, fueled by our overall sales growth as well as T2G's cash-flow friendly deal structure. These results reflect the continued discipline of our team, Board, and partners. As we enter the peak Q4 holiday season, we remain focused on operational efficiency, profitable growth, and prudent capital management."
Q4 2025 Outlook
For Q4 2025, EMERGE management expects to achieve another quarter of strong YoY revenue growth, and positive Adjusted EBITDA(1).
The Q4 holiday season is generally a high sales volume quarter, particularly at truLOCAL, including for B2B/ corporate gifting orders, as well as at UnderPar as golf courses introduce discounted pre-season (2026) offers.
EMERGE is now on track to achieve its full-year objectives of strong revenue growth, positive Adjusted EBITDA(1) and positive cash flow for 2025.
See "Forward-Looking Statements" below for important disclosure with respect to expectations and forward-looking information.
Warrants Update
On November 24, 2025, approximately 12.2M debenture warrants, with an exercise price of $0.25, expired unexercised, and were de-listed. In July 2025, approximately 12.3M warrants, with an exercise price of $0.10, expired unexercised.
Combined, approximately 24.5M warrants have expired unexercised between July and November 2025. At this time, the Company expects to enter 2026 with zero warrants outstanding, resulting in a more streamlined capital structure.
In addition, approximately 2.7M out-of-the-money warrants were exercised at $0.10, raising approximately $270K in cash proceeds in July 2025. In parallel, EMERGE CEO, Ghassan Halazon, voluntarily exercised approximately 91K stock options at $0.11, well in advance of their October 2027 expiry.
Acquisition Pipeline
Building off our success in acquiring and accelerating T2G, which continued to perform exceptionally in Q3, EMERGE is selectively advancing accretive acquisition opportunities, specifically in grocery and golf verticals, as well as in adjacent B2B / e-commerce enablement technologies that can help super-charge the overall portfolio. EMERGE's focus is exclusively on profitable acquisition candidates with $750K-$2M in Adj. EBITDA, with a long-standing track record of revenue stability and cash flow generation.
Debt Update
EMERGE maintains a longstanding relationship with our existing lender dating back to November 2019 and remains in good standing. The recent interest rate cuts, and the anticipated upcoming rate reductions, are expected to result in meaningful cash savings. The Company anticipates that its materially improved profitability, cash position and leverage profile could be helpful for purposes of accessing cheaper, longer-term debt refinancing options in the future.
Top Priorities
The Company's top priorities in the near-term are to i) continue to drive organic revenue growth, ii) extract synergies to drive profitability, iii) explore accretive strategic/ tuck-in acquisition opportunities; and iv) explore avenues to enhance cash flow and reduce interest expense.
Conference Call
Management will host a conference call on Wednesday, November 26 at 9:00 am ET to discuss its Q3 2025 results. To access the conference call, please dial (416) 945-7677 or (888) 699-1199 and provide conference ID 94603
Alternatively, the conference call can be accessed online at: https://app.webinar.net/Dn57y4lyr0M
Selected Financial Highlights:
The tables below set out selected financial information and should be read in conjunction with the Company's consolidated financial statements and MD&A for the three and nine months ended September 30, 2025, which are available on SEDAR.
The following financial information has been summarized from the Company's unaudited condensed consolidated interim financial statements (excluding Gross Merchandise Sale ("GMS") and Adjusted EBITDA):
Three months ended Sept 30,
Nine months ended Sept 30,
2025
2024
2025
2024
