Montréal-based online grocer and meal delivery company Goodfood says its business is stabilizing despite declining sales and the recent loss of both of its co-founders.
The company reported $27 million CAD in net sales for the fiscal period that ended December 6, 2025, a 21 percent decrease from the same period last year. Goodfood attributed the drop to lower demand and fewer marketing incentives, but claimed it was partially offset by larger average orders.
Those same factors contributed to Goodfood’s slightly improved gross margin (the percentage of revenue remaining after direct costs), which increased from 39.6 percent in Q1 2025 to 42.3 percent in Q1 2026.
“Our focus is building a simpler, more resilient operating model that performs consistently at current volumes.”
Selim Bassoul
Executive Chairman
Goodfood executive chairman Selim Bassoul said the first quarter and its improved gross margin “marks a clear step in stabilizing the business.”
“The meal solutions category, particularly meal kits, remains under pressure, and we are not assuming a near-term recovery,” Bassoul said in a statement. “Our focus is building a simpler, more resilient operating model that performs consistently at current volumes.”
Despite the improved margins, Goodfood still posted a nearly $2.6 million net loss, 53 percent greater than a year ago. The loss amounts to three cents per diluted share, according to the company.
Bassoul became executive chairman after Goodfood co-founder Neil Cuggy announced his intent to leave the company in December. Cuggy was handling day-to-day operations in the months following the abrupt departure of fellow co-founder, CEO Jonathan Ferrari, in August. Ferrari’s departure triggered a “formal operating review” of Goodfood, intended to keep the company competitive and get through its “next critical phase.”
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Bassoul said in the Q1 earnings report that both the review and leadership transition are nearly complete, and that the company’s priorities are to protect margins, generate cash, and allocate capital with discipline. Bassoul added that, alongside its organic improvements, Goodfood “will remain highly selective” on acquisitions that strengthen its platform and improve its cost and margin structure.
Goodfood has described itself as Canada’s top meal-delivery company, but its customer base has steadily declined since a boom during the COVID-19 pandemic; it once boasted of $79 million in net sales for Q4 2021. At its peak, the company’s stock was trading at $13. Following its earnings report on Tuesday, $FOOD dropped roughly 5 percent, and was trading at just $0.32 per share.
The earnings report dropped just over a week after the Canadian Food Inspection Agency lifted a nine-day suspension of Goodfood’s safe food licence. The suspension affected Goodfood’s Montréal facility; its Calgary facility maintained operations during the suspension.
In October 2025, a class-action lawsuit was filed against Goodfood for not disclosing its delivery fee charges in the prices displayed on its website. The proposed class action, if it proceeds, would represent all Québec residents who have paid delivery fees to Goodfood since October 2022. The lawsuit has yet to be ratified, and the accusations have not yet been proven in court.
Feature image courtesy Goodfood.