Star Metro - The Fresh Factory Reports Record Billed Revenue of $11.7M, Positive EBITDA & Continued Operational Expansion in Q3 2025

CAROL STREAM, IL / ACCESS Newswire / November 28, 2025 / The Fresh Factory B.C. Ltd. (TSXV:FRSH)(FRA:Q4Z) ("The Fresh Factory" or the "Company"), a mission-driven company for fresh, clean-label, and better-for-you food and beverage brands, is pleased to announce financial results for the third quarter ending September 30, 2025 ("Q3 2025").

"Q3 was a pivotal quarter for us, highlighted by record revenue, positive EBITDA, and meaningful progress in scaling our snacks platform," said Bill Besenhofer, CEO and co-founder. "With new lines online, a significantly larger facility secured, and enhanced liquidity from our credit facility, we're positioned to grow alongside our partners and accelerate innovation across categories."

Financial and Operational Highlights: YTD 2025 vs. YTD 2024

• Billed revenue of $33.4M ($47.7M CAD) for YTD 2025 vs. $23.9M ($34.2M CAD) for YTD 2024, an increase of 40%, was mainly attributed to the addition of new customers and increased sales through existing customers.

• Adjusted EBITDA of $2.5M ($3.6M CAD) for YTD 2025 was favorable $1.4M ($2.0M CAD) vs. YTD 2024, an increase of 77%.

• Adjusted Gross Margins of $12.5M (CAD $17.8M) in YTD 2025, a 40% increase from $8.9M (CAD $12.8M) in YTD 2024.

• The Company reported net income of $126,003 for the first nine months of 2025, compared to a net loss of $165,031 in the same period of 2024.

• The Company produced 64.4M units for YTD 2025, a 229% increase from YTD 2024.

Financial and Operational Highlights: Q3 2025 vs Q3 2024

• Record Billed Revenue: $11.7M (CAD $16.7M) in Q3 2025 vs. $8.1M (CAD $11.6M) in Q3 2024, a 44% increase.

• Adjusted EBITDA: $0.66M (CAD $0.9M) in Q3 2025 vs. $0.75M (CAD $1.0M) in Q3 2024.

• Net Income: $(0.33)M (CAD $(0.48)M) in Q3 2025 compared to a net income of $0.05M (CAD $0.08) in Q3 2024. The decrease in net income was driven by higher facilities and maintenance expenses associated with the ramp-up of expanded snacking capacity, increased labor needs to support higher production volumes, and a one-time $0.2M loss on the disposal of equipment, which does not reflect ongoing operating performance.

• Adjusted Gross Margins: $4.1M (CAD $5.9M) in Q3 2025, a 31% increase from $3.1M (CAD $4.5M) in Q3 2024.

Strategic Areas of Focus

The Fresh Factory is building a platform to serve emerging food and beverage brands in the fresh-food sector with an emphasis on better-for-you products. The Company has established the following three key areas of focus on which it will report on a quarterly basis moving forward.

Execution: Focus on safety, high-quality operations, and strong margins.

• Adjusted gross margin dollars increased to $4.1M (CAD $5.9M) for Q3 2025, compared to $3.1M (CAD $4.5M) for Q3 2024.

• Adjusted gross margins, as a percentage, were 35% for Q3 2025, versus 39% for Q3 2024. This decline was driven by shifts in product mix and higher labor costs required to support increased production volumes.

• Operating profit on a dollar basis decreased by $100,165 (CAD $143,093) for Q3 2025 vs Q3 2024.

• Operating profit on a percentage basis decreased to 12% in Q3 2025, compared to 19% in Q3 2024, driven by higher facilities and maintenance costs tied to the expanded production capacity and the ramp-up of new manufacturing operations, which increased costs ahead of full revenue absorption.

• The Company achieved positive EBITDA of $0.4M (CAD $0.5M) in Q3 2025.

Growth: Invest in and grow with the right brands across diversified channels.

• Billed revenue for Q3 2025 was $11.7M (CAD $16.7M), compared to $8.1M (CAD $11.6M) in Q3 2024.

• The Company's Q3 2025 billed revenue grew 44% YOY, driven by increased demand from existing strategic partners across a variety of categories.

• The Company produced 29.9M units in Q3 2025, a 227% increase from Q3 2024 and a 56% increase from Q2 2025.

• During Q3 2025, the Company expanded production with increased snack-bites capacity and new sachet-pouch-filling capabilities.

• The Company secured a 10-year lease for a 154,000-square-foot facility in the southwest suburbs of Chicago. This facility will support future scale, consolidate operations, and allow for significant production capacity across condiments and dips, beverages, and hot-fill categories.

• During the quarter, the Company secured a three-year, $4.0M revolving asset-based lending facility, providing additional financial flexibility to support working capital and operational growth.

Sustainability: Become a market leader in sustainability.

• The Company advanced its sustainability initiatives by installing high‑efficiency HVAC systems to reduce energy consumption in its newly leased facility.

• The Company continued to compost 100% of its food waste, reinforcing its commitment to minimizing environmental impact.

The Company received approval from the TSX Venture Exchange (the "TSXV") to proceed with the renewal of its normal course issuer bid ("NCIB"). The NCIB will allow the Company to continue to purchase outstanding subordinate voting shares of the Company ("Shares").

Under the NCIB, the Company may acquire up to an aggregate of 993, 161 Shares over the 12-month period commencing on December 2, 2025, and ending on December 1, 2026, representing approximately 10% of the Company's public float as at the date hereof. Additionally, under the NCIB, the Company may not acquire more than 2% of the issued and outstanding Shares in any 30-day period.

The Company believes that, from time to time, the market price of its Shares does not adequately reflect the Company's underlying value and prospects. At such times, purchasing the Shares represents an appropriate use of its financial resources and is expected to enhance shareholder value.

Purchases subject to the NCIB will be carried out pursuant to open market transactions through the facilities of the TSXV and alternative trading systems or by such other means as may be permitted under applicable securities laws during the term of the NCIB at the prevailing market price of the Shares at the time of purchase. All Shares purchased by the Company under the NCIB will be returned to treasury and cancelled. The actual number of Shares that may be purchased pursuant to the NCIB and the timing of any purchases will be determined by management and the Board of Directors of the Company. The NCIB will be conducted through Clarus Securities Inc., a member of the TSXV, and made in accordance with the policies of the TSXV.

The funding for any purchases pursuant to the NCIB will be from the working capital of the Company. To the Company's knowledge, none of the officers, or other insiders of the Company, or any associates of such persons, or any associate of affiliates of the Company, has any present intention to sell any Shares to the Company pursuant to the NCIB. The Company purchased and cancelled a total of 145,000 Shares in connection with its previously completed NCIB.

This earnings news release should be read in conjunction with the Company's interim financial statements for the third quarter ending September 30, 2025, (the "Interim Financial Statements") and the related Management's Discussion and Analysis (the "MD&A"); both documents are available to download on The Fresh Factory's profile on SEDAR+ at www.sedarplus.ca.

For conversion purposes, this release used $0.70 as the conversion rate from CAD to USD.

All figures in this news release are in US dollars unless otherwise stated.

About The Fresh Factory B.C. Ltd.

The Fresh Factory is a vertically integrated company focused on accelerating the growth of the fresh, clean-label, plant-based food and beverage brands of tomorrow. The Fresh Factory owns or partners with emerging brands in the plant-based space to develop, manufacture, and sell products made from fresh produce and recognizable ingredients. It operates from its centrally located manufacturing facility near Chicago, serving customers across the United States. As a public benefits corporation, The Fresh Factory is ESG-focused, driven to make a lighter, greener impact on the environment and a stronger, positive impact on local communities and the food system as a whole. Learn more about The Fresh Factory at www.thefreshfactory.co and find The Fresh Factory on social media at Instagram, Twitter, and LinkedIn.

Contacts

Bill Besenhofer
Chief Executive Officer and Co-Founder
1-877-495-1638
[email protected]

Susan Xu
Media and Investor Relations
1-877-495-1638
[email protected]

Non-IFRS Measures

There are measures included in this news release that do not have a standardized meaning under international financial reporting standards (IFRS) and therefore may not be comparable to similarly titled measures and metrics presented by other publicly traded companies. The Company includes these measures because it believes certain investors use them as a means of assessing financial performance. Billed revenue, adjusted gross margin, operating profit, EBITDA, and adjusted EBITDA are financial measures that do not have a standardized meaning under IFRS. EBITDA is defined as earnings before interest, taxes, depreciation, and amortization. Adjusted EBITDA refers to earnings before interest, taxes, depreciation, amortization, stock-based compensation, one-time transaction expenses, and change in fair value of derivative liabilities. Adjusted gross margin is defined as billed revenue minus food, packaging, and labor (i.e., COGs). Operating profit is adjusted gross margin less utilities, facilities, and maintenance costs. Billed revenue is a financial measure defined as the revenue billed to customers as opposed to total revenue, which represents billed revenue less trade and variable selling and any production credits and samples.

We prepare and release quarterly unaudited and annual audited financial statements prepared in accordance with IFRS. We also disclose and discuss certain non-GAAP (Generally Accepted Accounting Principles) financial information used to evaluate our performance in this and other earnings releases and investor conference calls as a complement to results provided in accordance with IFRS. We believe that current shareholders and potential investors in the Company use non-GAAP financial measures, such as billed revenue, adjusted gross margin, operating profit, EBITDA, and adjusted EBITDA in making investment decisions about the Company and measuring its operational results.

Management believes that investors and financial analysts measure our business on the same basis, and we are providing the billed revenue, adjusted gross margin, operating profit, EBITDA, and adjusted EBITDA as financial metrics to assist in this evaluation and to provide a higher level of transparency into how we measure our own business.

Forward-Looking Statements

This news release contains "forward-looking statements" or "forward-looking information" (collectively referred to hereafter as "forward-looking statements") within the meaning of applicable Canadian securities legislation. All statements that address activities, events, or developments that the Company expects or anticipates will, or may, occur in the future, including statements about the Company's new product offerings, its ability to execute on its goals, general macro and micro economic impacts of inflation on the business and operation of the Company, the timing pertaining to these goals and receipt of applicable consents and approvals, and Company's business prospects, future trends, plans, and strategies. In some cases, forward-looking statements are preceded by, followed by, or include words such as "may", "will," "would", "could", "should", "believes", "estimates", "projects", "potential", "expects", "plans", "intends", "proposes", "anticipates", "targeted", "continues", "forecasts", "designed", "goal", "anticipate" or the negative of those words or other similar or comparable words. Although the management of the Company believes that the assumptions made and the expectations represented by such statements are reasonable, there can be no assurance that a forward-looking statement herein will prove to be accurate. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, or intended. Risks and uncertainties applicable to the Company, as well as trends identified by the Company affecting its industry, can be found in the final long-form prospectus of the Company dated November 10, 2021, and the Company's continuous disclosure record available on SEDAR+ at www.sedarplus.ca. Such cautionary statements qualify all forward-looking statements made in this news release. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law.

Neither the TSXV nor its Regulation Services provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: The Fresh Factory B.C. Ltd.

View the original press release on ACCESS Newswire

Y.Walker--SMC