Innovative Food Holdings reported third‑quarter 2025 revenue of $16.4 million, a 3.5 % year‑over‑year increase driven largely by the recent acquisitions of Golden Organics and LoCo Foods. Adjusted EBITDA fell by $698,000 to $1.2 million, reflecting the underperformance of some newly acquired businesses and the impact of a one‑time share‑based compensation reversal. GAAP gross margin remained steady at 23.5 %, indicating that pricing power in core B2B segments offset the cost pressures from the acquisition integration.
The Digital Channels segment posted a 4.5 % decline for the quarter and a 5.4 % year‑to‑date drop, largely due to softness with the company’s largest digital partner. A new partner, however, generated more than $500,000 in sales, and Amazon delivered triple‑digit year‑over‑year growth, partially offsetting the decline. Local Distribution grew 33 % in the quarter and 54.7 % year‑to‑date, but when acquisitions are excluded the segment fell 21.5 % for the quarter and 10.4 % year‑to‑date, highlighting the organic weakness in that channel.
National Distribution increased 8.1 % year‑to‑date, supported by steady demand from core B2B customers such as U.S. Foods and Gate Gourmet. The growth in this segment underscores the company’s focus on its core distribution business.
Strategic realignment continued with the exit of the cheese‑conversion business, the relocation of airline catering operations to Chicago, and a letter of intent to sell the former Pennsylvania facility. These moves are intended to reduce operating complexity and improve margin profile by concentrating resources on high‑margin B2B food distribution.
Leadership changes were also noted: Gary Schubert took the helm as CEO effective October 3, 2025, and the company consolidated technology and operations under a single leader while Argie Liarakos returned to Artisan. The consolidation is aimed at streamlining operations and accelerating technology integration across the organization.
Overall, the quarter shows modest revenue growth driven by acquisitions but highlights ongoing profitability challenges. The decline in adjusted EBITDA and the organic weakness in Local Distribution signal that the company’s strategic realignment is still in progress. Management’s focus on divesting non‑core assets and streamlining operations suggests a path toward improved profitability as the company consolidates its core B2B business.
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