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:49Neutral
Price Target:
C$0.30
▼(-12.06% Downside)
The score is held back primarily by weak financial performance—declining revenue, ongoing losses, and especially negative equity with meaningful leverage. Offsetting this somewhat, the latest earnings commentary shows improving margins and recurring cash-generation efforts, while technicals are mixed (some longer-term improvement but weak near-term trend). Valuation is constrained by losses and no dividend support.
Positive Factors
Gross margin improvement
Sustained gross-margin expansion reflects better pricing, higher average order values and lower discounts, which structurally raise per-order profitability. If maintained, this margin buffer helps absorb volume shocks, supports operating leverage and shortens the path to consistent operating profitability.
Recurring positive cash generation
A recurring pattern of positive adjusted EBITDA and frequent positive free cash flow demonstrates the business can generate cash even with lower volumes. This durable cash-generation ability improves liquidity, reduces reliance on external funding and provides flexibility to prioritize margin-preserving initiatives.
Revenue mix diversification and higher AOV
Expanding beyond core meal kits into groceries and heat-and-eat products increases addressable market and basket size, reducing dependency on a single category. Over months this structural diversification can stabilize revenue, improve margin mix and create cross-sell synergies that support durable growth.
Negative Factors
Sustained revenue decline and shrinking customer base
A meaningful, persistent drop in sales and active customers erodes scale, weakens fixed-cost absorption and pressures long-term profitability. Recovering customer counts may require sustained investment or incentives, lengthening the timeline to regain operating leverage and stable top-line growth.
Negative shareholders' equity and high net debt
A deficit equity position combined with sizable debt materially limits financial flexibility and raises refinancing and covenant risk. This structural balance-sheet weakness constrains strategic choices, increases vulnerability to higher rates or shocks, and may force dilutive or disruptive financing solutions.
Elevated leverage and extended turnaround horizon
Needing roughly 18 months to stabilize implies prolonged execution risk: sustained discipline required to protect liquidity, manage interest costs and restore demand. The extended timeline raises the chance of funding stress or margin pressure before scale benefits re-emerge, limiting strategic flexibility.
Goodfood Market Corp (FOOD) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$26.52M
Dividend YieldN/A
Average Volume (3M)342.79K
Price to Earnings (P/E)―
Beta (1Y)1.46
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)N/A
Revenue Forecast (FY)N/A
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 generates revenue primarily through its subscription-based meal kit service, where customers pay for weekly deliveries of curated meal kits. Additionally, the company earns income from its grocery delivery service, providing a wide range of grocery items beyond meal kits. Key revenue streams include direct sales of meal kits, add-on grocery items, and partnerships with various food brands for featured products. The company's innovative approach to e-commerce and meal preparation, along with strategic marketing efforts and customer retention strategies, further contribute to its earnings.
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
Overall financial statements remain weak: revenue is down (TTM ~-5.9%) with ongoing net losses and negative operating profit. Balance sheet risk is the biggest overhang with negative shareholders’ equity (≈-$29.6M) and sizable debt relative to assets, limiting flexibility. Cash flow is mixed—TTM operating cash flow is near breakeven and free cash flow is negative—though margins/EBITDA show some improvement versus earlier years.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 | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 120.88M | 152.84M | 168.56M | 268.59M | 379.23M |
| Gross Profit | 50.40M | 62.98M | 65.38M | 68.06M | 116.09M |
| EBITDA | 4.46M | 10.74M | 892.00K | -98.39M | -18.30M |
| Net Income | -8.10M | -3.43M | -16.46M | -121.76M | -31.79M |
Balance Sheet | |||||
| Total Assets | 41.76M | 52.31M | 57.81M | 129.85M | 255.26M |
| Cash, Cash Equivalents and Short-Term Investments | 15.77M | 24.01M | 24.93M | 36.88M | 125.53M |
| Total Debt | 51.80M | 59.87M | 59.15M | 108.42M | 100.08M |
| Total Liabilities | 69.03M | 78.39M | 81.25M | 141.03M | 157.39M |
| Stockholders Equity | -27.27M | -26.08M | -23.44M | -11.18M | 97.88M |
Cash Flow | |||||
| Free Cash Flow | 464.00K | 6.87M | -11.09M | -97.42M | -35.11M |
| Operating Cash Flow | 1.98M | 7.49M | -9.35M | -58.98M | -16.36M |
| Investing Cash Flow | -4.77M | 773.00K | 1.96M | -37.67M | -18.01M |
| Financing Cash Flow | -8.88M | -9.18M | -4.57M | 8.00M | 55.50M |
Goodfood Market Corp Technical Analysis
Negative
0.34
Price Trends
0.29
Negative
0.29
Negative
0.23
Positive
Market Momentum
>-0.01
Positive
38.52
Neutral
4.79
Positive
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 0.31, above the 50-day MA of 0.29, and above the 200-day MA of 0.23, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 38.52 is Neutral, neither overbought nor oversold. The STOCH value of 4.79 is Positive, 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$39.98B | 23.31 | 25.66% | 3.58% | 19.92% | -18.34% | |
73 Outperform | C$536.99M | 17.13 | 10.19% | 5.98% | 1.35% | -1.11% | |
68 Neutral | $963.68M | 29.54 | 3.64% | 3.51% | 1.38% | -64.10% | |
62 Neutral | C$883.60M | 31.34 | 57.97% | 5.07% | -2.54% | -10.57% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
49 Neutral | C$26.52M | -2.76 | ― | ― | -20.91% | -109.64% |
* Consumer Cyclical Sector Average
TSE:FOOD
Goodfood Market Corp
0.27
-0.18
-39.77%
TSE:PZA
Pizza Pizza Royalty
15.69
3.47
28.41%
TSE:QSP.UN
Restaurant BrndLP
91.50
5.32
6.18%
TSE:JIVA
PlantX Life Inc.
0.02
-0.19
-92.50%
TSE:MTY
MTY Food Group
42.41
-6.43
-13.17%
TSE:AW
A & W Food Services of Canada Inc.
36.05
3.52
10.83%
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.