Revenue of $12.2 million, -19.0% vs. Q1 2025
GAAP net income from continuing operations of $343 thousand vs. $254 thousand in Q1 2025
GAAP net income from continuing operations per fully diluted share of $0.006 vs. $0.005 in Q1 2025
Non-GAAP adjusted EBITDA of $441 thousand vs. $593 thousand in Q1 2025
BROADVIEW, Ill., May 20, 2026 (GLOBE NEWSWIRE) -- Innovative Food Holdings, Inc. (OTCQB:IVFH) ("IVFH," the "Company," "we," "our" or "us"), a national seller of gourmet specialty foods to professional chefs, today reported financial results for the quarter ended March 31, 2026. For the first quarter of 2026, revenue was $12.2 million compared with $15.0 million in the prior-year period. The revenue decline reflected known transition-related and competitive headwinds across Digital Channels, National Distribution, and Local Distribution. These results primarily relate to ongoing marketplace transition activity within Digital Channels, competitive pressures within National Distribution, and customer attrition within Local Distribution.
Despite the lower revenue base, the Company continued to make progress improving operational discipline and simplifying the business. Operating income increased to $351 thousand compared with $260 thousand in Q1 2025, while net income from continuing operations increased to $343 thousand compared with $254 thousand in the prior-year period. Adjusted EBITDA was $441 thousand for Q1 2026 compared with $593 thousand in Q1 2025. Selling, general and administrative expenses declined approximately $888 thousand year over year, net cash used in operating activities improved significantly to $234 thousand from an approximate outflow of $1 million in the same period last year, and the Company materially strengthened its balance sheet following the sale of its former Pennsylvania facility.
Gary Schubert, Chief Executive Officer of IVFH, stated, "Q1 was not a revenue recovery quarter. Revenue remained under pressure across several parts of the business, and we still have meaningful work ahead of us. What we believe is important, however, is that the business is becoming operationally healthier and financially simpler. During the quarter, we reduced selling, general and administrative expenses meaningfully, improved operating income despite lower revenue, generated positive income from continuing operations, and materially strengthened the balance sheet. Those are important foundational steps as we continue rebuilding the business.
"The most significant strategic development during the quarter was the completion of the sale of our former Mountain Top, Pennsylvania facility. The transaction eliminated effectively all of the companies debt and associated interest expense of approximately $850 thousand per year, released restricted cash, reduced balance sheet complexity, and sharpened management's focus on the continuing operations that will drive IVFH's future performance. At March 31, 2026, current liabilities declined to $3.3 million compared with $12.4 million at December 31, 2025, while stockholders' equity increased to $8.1 million from $6.2 million.
"Digital Channels remained our largest business segment, representing approximately 54.5% of first quarter revenue. Digital revenue declined year over year, primarily reflecting the ongoing transition from a legacy marketplace environment to a newer platform environment at our largest digital partner, combined with broader marketplace competitiveness. While the transition has taken longer than expected, we believe we are nearing the end of the most disruptive phase of that migration and its' continued drag on year over year comparability.
"At the same time, we are beginning to see encouraging operational improvements within Digital Channels. During Q1, we materially increased new item setup activity, supported in part by our AI-enabled HUB platform. While newly added items typically take time to build discoverability and recurring purchasing patterns, we believe improving item throughput, item maintenance, and overall marketplace uptime are important building blocks toward stabilizing and rebuilding Digital performance into the future.
"National Distribution revenue also remained under pressure during the quarter primarily due to competitive dynamics and airline menu-cycle changes. Our focus remains on the areas we can directly control: execution, fulfillment reliability, customer responsiveness, procurement discipline, and competitiveness. We believe recent operational and leadership changes have improved execution and strengthened customer relationships, and we are seeing an improving pipeline of bid opportunities as we move through 2026.
"Local Distribution remains the most challenged part of the business, although the rate of decline moderated compared with the fourth quarter of 2025. Our focus continues to be rebuilding customer confidence through service reliability, fulfillment execution, procurement discipline, and accountability. We are beginning to see early signs of stabilization, including improved operational execution and the addition of new customers, although rebuilding this segment will take time.
"Our key message for 2026 is disciplined execution and operational stabilization. We are continuing to pursue new customers, expand vendor and item relationships, improve fulfillment consistency, strengthen item maintenance workflows, and operate the business with greater accountability and efficiency. We believe the operational foundation of the business is improving, but our next challenge is converting that operational discipline into sustainable long-term growth."
About Innovative Food Holdings, Inc.At IVFH, we help make meals special. We provide access to foods that are hard to find, have a compelling story, or are on the forefront of food trends. Our gourmet foods marketplace connects the variety of artisan food makers with professional chefs nationwide. We curate the assortment, experience, and tech enabled tools that help our professional chefs create unforgettable experiences for their guests. Additional information is available at www.ivfh.com.
Forward-Looking StatementsThis 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 underlying assumptions prove incorrect, actual results may vary materially from those described herein, which include words such as "should," "could," "will," "anticipate," "believe," "intend," "plan," "might," "potentially," "targeting," or "expect," or similar expressions. Additional factors that could also cause actual results to differ materially relate to current conditions and expected future developments, international crises, environmental and economic issues and other risk factors described in the Company's public filings. As a result, readers are cautioned not to place undue reliance on these forward-looking statements and should understand that these statements are not guarantees of performance or results and that there are a number of risks, uncertainties and other important factors, many of which are beyond the Company's control, that could cause the Company's actual results to differ materially from those expressed in these statements, including, among others: economic factors affecting consumer confidence and discretionary spending; cost inflation/deflation and commodity volatility; competition; reliance on third party suppliers and interruption of product supply or increases in product costs; and changes in the Company's relationships with vendors and customers. The Company does not intend to update these forward-looking statements.
For a detailed discussion of these risks, uncertainties and other factors that could cause the Company's actual results to differ materially from those anticipated or expressed in any forward-looking statements, see the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025 filed with the Securities and Exchange Commission ("SEC"). Additional risks and uncertainties are discussed from time to time in current, quarterly and annual reports filed by the Company with the SEC, which are available on the SEC's website at https://www.sec.gov/.
(As Reported)
Innovative Food Holdings, Inc.
Consolidated Balance Sheets
March 31,
December 31,
2026
2025
ASSETS
Current assets
Cash and cash equivalents
$
1,231,164
$
927,468
Cash, restricted
-
507,517
Accounts receivable, net
5,303,526
5,300,190
Inventory, net
3,128,986
3,473,604
Other current assets
95,500
144,143
Asset held-for-sale - discontinued operations
-
6,144,793
Current assets - discontinued operations
17,281
281,699
Total current assets
9,776,457
16,779,414
Property and equipment, net
1,265,742
1,273,310
Right of use assets - operating leases, net
443,493
512,389
Right of use assets - finance leases, net
51,711
205,340
Amortizable intangible assets, net
316,480
338,059
Indefinite-lived intangible assets
217,000
217,000
Other noncurrent assets
40,000
40,000
Noncurrent assets - discontinued operations
-
215,509
Total assets
$
12,110,883
$
19,581,021
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities
$
2,824,850
$
3,035,799
Accrued separation costs - related parties, current portion
19,759
109,236
Stock appreciation rights liability
733
16,143
Notes payable, current portion
67,022
66,026
Lease liability - operating leases, current
294,679
285,534
Lease liability - finance leases, current
23,427
48,866
Current liabilities - discontinued operations
20,771
8,877,624
Total current liabilities
3,251,241
12,439,228
Note payable non-current, net of discount
199,633
216,947
Accrued separation costs - related parties, non-current
400,000
400,000
Lease liability - operating leases, non-current
158,659
234,963
Lease liability - finance leases, non-current
-
52,683
Total liabilities
4,009,533
13,343,821
