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

Core Insights - Innovative Food Holdings, Inc. reported a revenue increase of 3.5% year-over-year for Q3 2025, reaching $16.4 million, primarily due to acquisitions [2][4] - The company is undergoing a strategic realignment to address challenges in certain business areas, particularly in the Digital Channels segment, which saw a decline of 4.5% for the quarter [2][3] - The company has taken decisive actions to correct operational inefficiencies, including exiting non-core activities and relocating operations to enhance efficiency [3][5] Financial Performance - Revenue for Q3 2025 was $16.4 million, up 3.5% from $15.87 million in Q3 2024 [4][21] - GAAP net income from continuing operations was $651 thousand, down from $861 thousand in Q3 2024, with diluted earnings per share decreasing from $0.017 to $0.012 [4][16] - Non-GAAP adjusted EBITDA for Q3 2025 was $321 thousand, a decline from $1 million in Q3 2024 [4][21] Operational Developments - The Digital Channels segment experienced a year-to-date revenue decline of 5.4%, attributed to challenges with the largest digital partner, although new partnerships are showing promise [2][3] - Local Distribution revenue increased significantly by 33% in Q3 and 54.7% year-to-date, driven by acquisitions, but excluding these, there was a decline of 21.5% for the quarter [2][3] - The company is focused on improving reliability and price competitiveness in digital foodservice distribution to enhance customer satisfaction [3][5] Strategic Initiatives - The company has clarified leadership roles and consolidated teams to improve operational efficiency and accountability [3][5] - A Letter of Intent for the sale of a former facility in Pennsylvania has been entered, indicating a focus on divesting non-core assets [3][5] - The company aims to build a sustainable operational foundation to support long-term growth and profitability [5]