Core Insights - Innovative Food Holdings, Inc. (IVFH) reported a revenue increase of 26.9% for Q2 2025, reaching $21.1 million compared to $16.6 million in Q2 2024 [2][3][17] - The company announced a strategic exit from the cheese conversion business and plans to relocate its airline catering operations to Chicago [2][3] - Excluding the cheese conversion business, revenue growth was 13.5%, primarily driven by acquisitions [2][3] Financial Performance - GAAP net income from continuing operations improved to $59 thousand in Q2 2025, compared to a loss of $60 thousand in Q2 2024 [3][17] - Adjusted EBITDA decreased to $228 thousand in Q2 2025 from $859 thousand in Q2 2024, largely due to challenges in the cheese conversion business [3][17] - GAAP gross margin for Q2 2025 was 21.0%, down 294 basis points from the previous year, while excluding the cheese conversion business, gross margin increased to 24.6% [2][3] Business Segments - The airline catering business experienced a revenue growth of 26.1%, while Digital Channels saw a decline of 4.9%, although this was an improvement from a 6.8% decline in Q1 [2][3] - The company noted strong growth in its Amazon sales channel and with a new national distributor partner, despite competitive pressures affecting its largest customer [2][3] Strategic Initiatives - The management emphasized a focus on high-performing areas such as airline and broadline distribution, aiming for scalable and profitable growth [2][3] - The company is actively working on catalog expansion to return its largest customer segment to growth [2][3]

This release contains certain forward-looking statements and information relating to the Company that are based on the current beliefs of the Company's management, as well as assumptions made by, and information currently available to, the Company. Such statements, including those related to the Company's growth plans, reflect the current views of the Company with respect to future events and are subject to certain assumptions, including those described in this release. Should one or more of these underlyin ...

Core Viewpoint - Innovative Food Holdings, Inc. (IVFH) is strategically exiting its cheese conversion business, selling its Pennsylvania warehouse, and relocating its profitable operations to Chicago to enhance operational efficiency and financial health [1][2][3]. Group 1: Strategic Decisions - The company has entered into a definitive agreement to sell its Pennsylvania warehouse, expected to close by September 30, 2025, which will eliminate approximately $9 million in debt, making the company virtually debt-free [2]. - Following the sale, IVFH will relocate its remaining profitable operations, primarily its airline and broadline distribution businesses, to its Chicago facility, combining them with Artisan Specialty Foods to leverage operational, supplier, and inventory synergies [3]. Group 2: Financial Impact - The combined effect of exiting the cheese conversion business, selling the warehouse, and relocating operations is projected to improve trailing twelve-month pre-tax income by approximately $2 million [4]. Group 3: Management Commentary - Bill Bennett, a company representative, stated that while the cheese conversion business showed promise, it was determined that it would not scale quickly enough to generate cash flow, allowing the company to eliminate its largest loan and focus on more attractive business segments [5].

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]

Core Viewpoint - Innovative Food Holdings, Inc. (IVFH) is set to hold an investor call on May 15, 2025, to discuss its first quarter financial results for the period ending March 31, 2025 [1][2]. Company Overview - IVFH specializes in gourmet specialty foods, connecting artisan food makers with professional chefs across the nation [3]. - The company aims to enhance meal experiences by providing access to unique and trend-forward food products [3]. Investor Call Details - The investor call will take place at 10:00 am Eastern Time, featuring a question-and-answer session for participants [2]. - Interested parties can join the call via Zoom, which facilitates easier interaction through its "raise hand" feature [2].