Innovative Food Holdings, Inc. Reports Financial Results for First Quarter of 2025

Core Insights - Innovative Food Holdings, Inc. reported a revenue of $19.5 million for Q1 2025, reflecting a 26.0% increase compared to Q1 2024, with organic revenue growth at 22.9% [3][2] - The company experienced a decline in gross margin by 157 basis points to 22.9%, although gross margin dollars increased by $0.7 million due to an additional $4.0 million in revenue [2][3] - GAAP net income from continuing operations was a loss of $0.4 million, compared to a gain of $1.4 million in Q1 2024, primarily due to a $1.8 million gain from the sale of the Florida headquarters in the previous year [3][2] - Adjusted EBITDA for Q1 2025 was $346 thousand, down from $486 thousand in Q1 2024, with a noted profit headwind of approximately $425 thousand due to the ramp-up of the retail business [3][2] Financial Performance - Revenue for Q1 2025 was $19,548,566, up from $15,518,153 in Q1 2024 [11] - Cost of goods sold increased to $15,062,759 from $11,713,219, resulting in a gross margin of $4,485,807 compared to $3,804,934 in the prior year [11] - Selling, general and administrative expenses rose to $4,708,977 from $3,978,840, leading to an operating loss of $223,170 [11] - The company reported a net loss of $430,436 for Q1 2025, compared to a net income of $1,425,874 in Q1 2024 [11] Growth Initiatives - The first quarter of 2025 marked the integration of recent acquisitions, including Golden Organics and LoCo Food Distribution, and the launch of a new retail sales channel that generated $3.7 million in revenue [2][3] - The company noted triple-digit growth in its Amazon sales channel and single-digit growth in its airline catering and Chicago Artisan businesses [2] - Management emphasized the importance of returning the legacy drop ship business to growth through significant catalog expansion, as it continues to represent the majority of the company's revenues [2] Operational Developments - The company is in the process of stabilizing its new acquisitions and relocating the LoCo business from Fort Collins to Denver [2] - Management expressed confidence in achieving profitability in the cheese business as the year progresses, highlighting a solid foundation and a committed team [2]