Q1 Adj. EBITDA(1) improved to $122K (6th consecutive quarter of positive Adj. EBITDA)
Cash grew YoY to $4.1M from $2.7M
Q2 2025 Outlook: Continued revenue growth and positive Adj. EBITDA(1) expected
TORONTO, May 28, 2026 /CNW/ - EMERGE Commerce Ltd. (TSXV:ECOM) ("EMERGE" or the "Company"), an acquirer and operator of profitable e-commerce brands and technologies, today announced its financial results for the three months ended March 31, 2026. Copies of the interim Financial Statements and MD&A are available on the Company's profile on SEDAR at www.sedar.com.
Q1 2026 Financial Highlights
For the first quarter of 2026, compared to the first quarter of 2025:
Q1 revenue grew to $5.9M vs. $5.0M, an increase of 17.5% YoY, marking the 8th consecutive quarter of YoY revenue growth
Q1 Gross profit grew to $2.1M vs. $1.9M, an increase of 6.2% YoY
Q1 Adj. EBITDA(1) improved to $122K vs. $32K, marking the 6th consecutive quarter of positive Adj. EBITDA(1)
Cash position grew to $4.1M (March 31, 2026) vs. $2.7M (March 31, 2025), an increase of $1.4M YoY
Viral Loops was acquired on March 10, 2026 and contributed from the day of closing. Q2 is Viral Loops first full quarter under EMERGE ownership. Viral Loops achieved approximately $1.3M Revenue and $800K Adj. EBITDA(1) in 2025 (unaudited).
Ghassan Halazon, Founder and CEO, EMERGE, "Our Q1 results marked another strong quarter of revenue growth and positive Adjusted EBITDA(1), despite being the most seasonal quarter for our golf business. During the quarter, we also completed the strategic acquisition of Viral Loops that we expect will be immediately accretive to earnings and cash flow. Looking ahead, Q2 is expected to be the strongest quarter of the year in terms of revenue and Adj. EBITDA(1), with the 2026 golf season now in full swing, along with the inclusion of Viral Loops in its first full quarter under EMERGE."
Q1 2026 Strategic Highlights
Debt Refinancing
On February 18, 2026, EMERGE amended its existing credit facility, extending the maturity to October 2027. The outstanding balance currently stands at $5.85M, with pricing unchanged at the greater of 9.0% per annum and TD Prime Rate + 6.55%. The Company remains in good standing with existing lender, which it has worked with since November 2019.
The amendment does not preclude the Company from refinancing its credit facility at a cheaper rate, at any time, should it secure more favourable terms.
Viral Loops Acquisition and Concurrent Private Placement
On March 6, 2026, EMERGE closed an upsized non-brokered private placement for aggregate gross proceeds of $2.7M at a price of $0.10 per unit. Each unit consisted of one common share and one-half of one common share purchase warrant, with each whole warrant exercisable at $0.15 per share until March 6, 2028.
Subsequently, on March 10, 2026, EMERGE completed the acquisition of Viral Loops, a profitable B2B referral technology company with a 10-year operating history. Viral Loops represents the Company's first acquisition under EMERGE B2B, a vertical established to enhance EMERGE's overall financial profile and support its D2C Grocery and Golf businesses.
For the year ended December 31, 2025, Viral Loops generated approximately CA$1.3M revenue and approximately $800K Adj. EBITDA(1) (unaudited). The acquisition consideration included $2.1M in cash paid at closing and an additional deferred cash payment of $200K payable on the one-year anniversary of closing. The purchase price equates to a ~2.9x 2025 Adj. EBITDA(1) multiple.
Outlook
For Q2 2026, EMERGE expects to deliver another quarter of revenue growth and positive Adjusted EBITDA(1). The Company is also making some investments at the HQ level and across its portfolio to drive and support current and future growth.
Q2 2026 is a seasonally strong quarter overall, including peak season for the golf business, particularly at Tee 2 Green ("T2G"). Q2 will also be the first full quarter to include Viral Loops results, expected to contribute positive Adj. EBITDA(1) and cash flow.
EMERGE acquired T2G on April 5, 2025, and Viral Loops on March 10, 2026.
Top Priorities
The Company's top priorities in the near-term are to i) continue to drive organic growth, ii) extract synergies to drive profitability, iii) explore avenues to enhance cash flow and reduce interest expense; and iv) explore accretive strategic/ tuck-in acquisition opportunities
Conference Call
Management will host a conference call on Thursday, May 28 at 9:00 am ET to discuss its first quarter results. To access the conference call, please dial (416) 945-7677 or (888) 699-1199 and provide conference ID 35050.
Alternatively, the conference call can be accessed online at: https://app.webinar.net/01GRbq8ezN5
Selected Financial Highlights
The tables below set out selected financial information and should be read in conjunction with the Company's consolidated financial statements and MD&A for the three and twelve months ...
