Innovative Food Holdings Reports Q1 2025 Financial Results

Innovative Food Holdings ( (IVFH) ) has released its Q1 earnings. Here is a breakdown of the information Innovative Food Holdings presented to its investors.

Innovative Food Holdings, Inc. is a national seller of gourmet specialty foods, connecting artisan food makers with professional chefs across the United States. The company operates in the specialty food industry, focusing on providing unique and hard-to-find ingredients for culinary professionals.

In the first quarter of 2025, Innovative Food Holdings reported a revenue increase of 26% compared to the same period in 2024, reaching $19.5 million. This growth was driven by the integration of recent acquisitions and the establishment of a new retail sales channel, which contributed $3.7 million in revenue.

Despite the revenue growth, the company experienced a decline in gross margin by 157 basis points to 22.9%, primarily due to a shift towards lower-margin retail business. The GAAP net income from continuing operations showed a loss of $0.4 million, contrasting with a gain of $1.4 million in the previous year. Adjusted EBITDA also decreased to $346 thousand from $486 thousand in Q1 2024.

Strategically, the company announced a new cheese business partnership with an international airline and relocated its LoCo Foods business to Denver. The management emphasized the importance of expanding their legacy drop ship business and stabilizing new acquisitions to drive future growth.

Looking ahead, Innovative Food Holdings remains focused on enhancing its operational models and capitalizing on growth opportunities. The management is optimistic about achieving profitability in its cheese business and is committed to building a sustainable business model in a dynamic food industry landscape.