Education
About Us
Working with TipRanks
Follow Us
Goodfood Market Corp (TSE:FOOD)
TSX:FOOD
Top Page
Goodfood Market Corp
(TSX:FOOD)
Select Model
Select Model
Rating:43Neutral
Price Target:
C$0.19
▼(-43.24% Downside)
Action:ReiteratedDate:03/21/26
The score is held down primarily by weak financial performance (declining revenue, ongoing losses, negative equity and debt-related balance-sheet risk) and bearish technicals (price below key moving averages with negative MACD). The earnings call provides partial support due to improved margins and recent positive cash generation/liquidity, but guidance remains cautious amid continued top-line pressure.
Positive Factors
Healthy Gross Margin
Sustained gross margins near the low-40s enhance structural profitability by insulating contribution per order from cost inflation and lower volumes. Higher average order value and less discounting improve unit economics, supporting durable margin recovery and cash generation even before scale returns.
Positive EBITDA and FCF Track Record
Consistent adjusted EBITDA and repeated positive adjusted free cash flow demonstrate improved discipline in operations and capital allocation. This recurring cash profile reduces dependence on external funding and supports runway for executing the 18-month turnaround plan under current volumes.
Improved Liquidity Position
A cash and securities buffer ~ $14.5M and materially lower net debt versus prior year increase near-term financial flexibility. This liquidity supports operational remediation, targeted investments, and conservative M&A criteria, reducing immediate refinancing pressure while management pursues stabilization.
Negative Factors
Meaningful Revenue Decline
A sharp revenue contraction reduces scale benefits and fixed-cost absorption, pressuring operating leverage and long-term profitability. If demand recovery is slow, sustaining margins and cash flow will rely on continued cost cuts or successful portfolio diversification, lengthening the turnaround timeline.
Weak Balance Sheet & Leverage
A deficit equity position and sizable debt materially constrain financial flexibility and raise refinancing and covenant risks. Persistent operating softness or higher rates could force dilutive financing or costly debt restructuring, making long-term recovery dependent on sustained cash generation.
Customer Base Contraction & Category Pressure
A shrinking active customer base and structural weakness in the meal-kit category reduce recurring revenue potential and lifetime value. Intentional lower acquisition now helps margins but risks slower re-expansion later, requiring effective product diversification to offset secular demand headwinds.
Goodfood Market Corp (FOOD) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$19.65M
Dividend YieldN/A
Average Volume (3M)342.79K
Price to Earnings (P/E)―
Beta (1Y)1.57
Revenue Growth-20.91%
EPS Growth-109.64%
CountryCA
Employees570
SectorConsumer Cyclical
Sector Strength84
IndustryPersonal Products & Services
Share Statistics
EPS (TTM)-0.03
Shares Outstanding98,239,360
10 Day Avg. Volume232,314
30 Day Avg. Volume342,794
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)-0.65
Price to Sales (P/S)0.15
P/FCF Ratio38.33
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.09
Revenue Forecast (FY)C$100.50M
Goodfood Market Corp Business Overview & Revenue Model
Company DescriptionGoodfood Market Corp., an online grocery company, delivers fresh meals and grocery products in Canada. The company offers ready-to-eat products, which include bakery, dessert, meat and seafood, drinks, pantry, produce, snacks, dairy, frozen and kitchen essentials. It also offers Yumm, a value meal kit for cost-focused customers. As of August 31, 2021, it had approximately 298,000 active subscribers. Goodfood Market Corp. is based in Saint-Laurent, Canada.
How the Company Makes MoneyGoodfood primarily makes money by selling food and related products directly to consumers through online subscriptions and one-time orders. Its key revenue streams include (1) meal-kit revenue: customers purchase recurring or ad hoc meal-kit boxes, with revenue recognized on delivery; (2) e-grocery/marketplace revenue: customers buy grocery items (e.g., pantry staples, fresh foods, prepared foods and other add-ons where offered) alongside or independent of meal kits; and (3) ancillary fees: delivery/shipping fees or minimum-order-related charges where applicable. Economically, Goodfood’s earnings are driven by (a) order volume and average order value (more meals, more add-ons), (b) customer retention and reactivation (recurring orders reduce customer acquisition cost per order), and (c) product gross margin management through sourcing, pricing, and fulfillment efficiency. The company’s cost structure typically includes food procurement, packaging, labor and operations at fulfillment facilities, last-mile delivery/logistics, marketing/customer acquisition, and technology/overhead; profitability depends on maintaining healthy contribution margins after these costs. Information on specific significant partnerships or their financial contribution is null.
Goodfood Market Corp Earnings Call Summary
Earnings Call Date:Jan 20, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Apr 15, 2026
Earnings Call Sentiment Neutral
The call conveyed a cautious but constructive tone: meaningful operational and margin improvements, positive adjusted EBITDA and free cash flow, and liquidity of roughly $14.5M are clear positives. However, the company faces significant top-line pressure (net sales down 21%), a contracting active customer base, elevated leverage and higher fulfillment/shipping costs. Management is prioritizing discipline, cash generation, portfolio diversification and strict M&A criteria, and expects a multi-quarter turnaround (target ~18 months). Overall, positives around cash generation and margin resilience are partially offset by persistent revenue weakness and balance-sheet concerns.Q1-2026 Updates
Positive Updates
Positive Adjusted EBITDA and Free Cash Flow
Adjusted EBITDA was positive at $1.0M (down from $1.6M a year ago) and adjusted free cash flow was $1.2M for the quarter, demonstrating the business can generate cash at lower volumes.
Operating Cash Flow Turned Positive
Cash flows from operating activities were positive at $1.4M, and capital expenditures were low (~$160k), supporting disciplined cash generation.
Material Gross Margin Improvement
Gross margin improved to 42.3% from 39.6% year-over-year, an increase of 270 basis points (2.7 percentage points), driven by higher average order value and lower incentives.
Higher Net Sales per Active Customer
Net sales per active customer increased meaningfully year-over-year as the company prioritized profitable demand and reduced discounting and incentives.
Portfolio Diversification Progress
Adjacencies such as the 'Genuity/Genuine Tea' business and other 'heat-and-eat' offerings are performing well, contributing to higher basket values and helping diversify revenue away from core meal-kits.
Strong Liquidity Management
Quarter-end cash and marketable securities totaled approximately $14.5M (cash $11.8M + marketable securities $2.7M), and management emphasized liquidity preservation and disciplined capital allocation.
Sustained Free Cash Flow Track Record
Company reported positive adjusted free cash flow in 7 of the past 9 quarters, indicating improved financial discipline and recurring cash generation capability.
Remediated Regulatory Issue
CFIA-identified issues at the Montreal facility were addressed and the licence was reinstated, demonstrating corrective action and regulatory responsiveness.
Negative Updates
Significant Revenue Decline
Net sales fell to $27.5M from $34.7M year-over-year, a decline of 21%, driven by fewer active customers and lower order rates.
Customer Base Contraction
Active customers ended the quarter at approximately 66,000; management intentionally reduced marketing and incentives which lowered near-term customer counts and volumes.
Reduced Profitability on a Relative Basis
Adjusted EBITDA decreased from $1.6M to $1.0M (a ~37.5% decline year-over-year) and net loss widened to $2.6M from $1.7M (net loss increased ~53%), reflecting top-line weakness and lower scale.
Elevated Leverage and Balance Sheet Pressure
Management noted that leverage is elevated and interest expense is a meaningful drag on cash flow; preservation of liquidity and balance-sheet protection are top priorities.
Higher Fulfillment and Shipping Costs
Gross margin gains were partially offset by higher fulfillment and shipping costs and lower fixed cost absorption on reduced volumes; additional CFIA and inter-regional shipping costs are expected to impact Q2.
Persistent Category Weakness
Management stated the meal-kit category remains under pressure with muted customer demand and said they are not assuming a near-term recovery, planning instead for stabilization over a longer timeframe.
Regulatory Disruption (Resolved but Material)
A CFIA-related licence suspension at the Montreal facility occurred during the quarter (now reinstated), which imposed remediation costs and operational disruption.
Company Guidance
Management's guidance is to assume continued near‑term pressure on the meal‑kit category and to prioritize protecting margins, generating cash and running the business with discipline at current volumes; key Q1 metrics cited were net sales of $27.5M (down 21% YoY from $34.7M), ~66k active customers, gross profit $11.6M and gross margin 42.3% (up 270 bps from 39.6%), adjusted EBITDA $1.0M (vs $1.6M), net loss $2.6M (vs $1.7M), operating cash flow $1.4M, capex ≈$160k and adjusted free cash flow $1.2M (positive FCF in 7 of the last 9 quarters); balance sheet metrics include cash $11.8M plus marketable securities $2.7M (≈$14.5M–$15M) and net debt down 21% YoY, operational review to be completed in the next 100 days with management targeting a turnaround over roughly the next 18 months, and M&A limited to deals that are immediately accretive to cash flow and margin.Goodfood Market Corp Financial Statement Overview
Summary
Weak overall fundamentals: revenue has been declining and the company remains net-loss making, with cash flow recently near breakeven/negative and a balance sheet constrained by negative shareholders’ equity and sizable debt. Positives include relatively strong gross margin (~41%) and slightly positive EBITDA, suggesting cost structure improvements, but the financial profile is still high risk.Income Statement
TTM (Trailing-Twelve-Months) revenue declined ~5.9% and profitability remains weak, with a net loss (about -7.9% margin) and negative operating profit. A positive is that gross margin is relatively stable/healthy (~41%), and EBITDA is slightly positive, indicating some underlying operating improvement versus the heavier losses seen in prior years (notably 2022). However, the company has not yet converted this into consistent operating and bottom-line profitability, and the overall revenue trajectory has been down for multiple years.34
Negative
Balance Sheet
The balance sheet is pressured by negative shareholders’ equity (TTM equity around -$29.6M), which meaningfully weakens financial flexibility and raises refinancing risk. Total debt remains sizable (TTM ~$58.5M) relative to the asset base (~$39.1M). While leverage has come down substantially from 2022 levels, the company is still operating with a deficit equity position, leaving it more exposed if operating performance softens or funding costs rise.18
Very Negative
Cash Flow
Cash generation weakened materially in TTM (Trailing-Twelve-Months): operating cash flow is near breakeven (~$0.2M) and free cash flow is negative (~-$1.0M), a notable deterioration versus the prior annual period where free cash flow was positive. The company’s cash flow is also not consistently tracking earnings quality—recent results show limited cash support for the income statement—creating higher dependency on liquidity management and potential external funding if the negative free cash flow persists.28
Negative
| Breakdown | TTM | Aug 2025 | Aug 2024 | Aug 2023 | Nov 2022 | Aug 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 113.75M | 120.88M | 152.84M | 168.56M | 268.59M | 379.23M |
| Gross Profit | 47.03M | 50.40M | 62.98M | 65.38M | 68.06M | 116.09M |
| EBITDA | 3.21M | 4.46M | 10.74M | 892.00K | -98.39M | -18.30M |
| Net Income | -8.99M | -8.10M | -3.43M | -16.46M | -121.76M | -31.79M |
Balance Sheet | ||||||
| Total Assets | 39.06M | 41.76M | 52.31M | 57.81M | 129.85M | 255.26M |
| Cash, Cash Equivalents and Short-Term Investments | 14.52M | 15.77M | 24.01M | 24.93M | 36.88M | 125.53M |
| Total Debt | 58.46M | 51.80M | 59.87M | 59.15M | 108.42M | 100.08M |
| Total Liabilities | 68.70M | 69.03M | 78.39M | 81.25M | 141.03M | 157.39M |
| Stockholders Equity | -29.64M | -27.27M | -26.08M | -23.44M | -11.18M | 97.88M |
Cash Flow | ||||||
| Free Cash Flow | -1.02M | 464.00K | 6.87M | -11.09M | -97.42M | -35.11M |
| Operating Cash Flow | 173.00K | 1.98M | 7.49M | -9.35M | -58.98M | -16.36M |
| Investing Cash Flow | -3.19M | -4.77M | 773.00K | 1.96M | -37.67M | -18.01M |
| Financing Cash Flow | -6.45M | -8.88M | -9.18M | -4.57M | 8.00M | 55.50M |
Goodfood Market Corp Technical Analysis
Negative
0.34
Price Trends
0.27
Negative
0.27
Negative
0.24
Negative
Market Momentum
-0.01
Positive
28.07
Positive
23.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FOOD, the sentiment is Negative. The current price of 0.34 is above the 20-day moving average (MA) of 0.24, above the 50-day MA of 0.27, and above the 200-day MA of 0.24, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 28.07 is Positive, neither overbought nor oversold. The STOCH value of 23.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:FOOD.
Goodfood Market Corp Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | C$46.63B | 50.42 | 25.66% | 3.58% | 19.92% | -18.34% | |
73 Outperform | C$523.65M | 16.65 | 10.35% | 5.98% | 1.35% | -1.11% | |
66 Neutral | C$890.81M | 7.28 | 3.64% | 3.51% | 1.38% | -64.10% | |
62 Neutral | C$858.73M | 16.42 | 27.32% | 5.07% | -2.54% | -10.57% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
43 Neutral | C$19.65M | -2.15 | 32.72% | ― | -20.91% | -109.64% |
* Consumer Cyclical Sector Average
TSE:FOOD
Goodfood Market Corp
0.20
-0.10
-34.43%
TSE:PZA
Pizza Pizza Royalty
15.70
2.82
21.87%
TSE:QSP.UN
Restaurant BrndLP
101.04
8.70
9.43%
TSE:JIVA
PlantX Life Inc.
0.02
-0.10
-86.96%
TSE:MTY
MTY Food Group
39.00
-2.43
-5.86%
TSE:AW
A & W Food Services of Canada Inc.
35.77
5.87
19.62%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.