Innovative Food Holdings, Inc. Reports Financial Results for Second Quarter of 2025

Keysecond quarter reported datapoints:

Revenue of $21.1 million, +26.9% vs. Q2 2024GAAPnetincome(loss)fromcontinuingoperations*of $59 thousand vs. ($60) thousand inQ2 2024GAAPnetincome(loss)fromcontinuingoperations*perfullydilutedshareof$0.001vs. ($0.001) in Q2 2024Non-GAAP adjusted EBITDA of $228 thousand vs. $859 thousand in Q2 2024, with declines driven by the cheese conversion businessSubsequent Events: Announced exit of cheese conversion business, and entered into agreement to sell Pennsylvania warehouse with intent to relocate national airline distribution business to Broadview, IL location*

*Continuing operations shown here do not yet incorporate the results of the above Subsequent Events

BROADVIEW, Ill., Aug. 13, 2025 (GLOBE NEWSWIRE) -- Innovative Food Holdings, Inc. (OTCQB: IVFH) (“IVFH” or the “Company”), a national seller of gourmet specialty foods to professional chefs, today announced financial results for the second quarter ended June 30, 2025.

Bill Bennett, Chief Executive Officer of IVFH, remarked, “In Q2 2025, revenue increased 26.9%. However, after the end of the quarter, we announced our strategic decision to exit the cheese conversion business, sell our Pennsylvania facility, and relocate our remaining profitable airline catering business to our Chicago warehouse. Excluding the cheese conversion business, Q2 revenue grew 13.5%, with acquisitions driving the majority of the year-over-year growth, since they did not contribute revenue in the prior comparable period. After an initial period of declines in these acquisitions as we’ve been working through the transition, our weekly revenues have stabilized throughout Q2, and we continue to optimize the team and implement our operational playbook.”

“The remaining core business revenue, excluding our acquisitions, was roughly flat year-over-year,” Mr. Bennett continued. “Within that core business, our airline catering business grew 26.1%, which was offset by a 4.9% decline in Digital Channels, an improvement from the 6.8% decline in Q1. Within Digital Channels, we continue to see strong growth with our new national distributor partner announced last year, and triple-digit growth in our Amazon sales channel. These growth initiatives were offset by continued softness in our largest customer, driven by continued increased competition within that customer’s marketplace. Returning this business to growth through significant catalog expansion remains a key initiative for the entire management team.”

Mr. Bennett also remarked, “GAAP gross margin for Q2 was 21.0%, down 294 basis points from Q2 2024, primarily due to a product mix shift toward the lower-margin cheese conversion business. Excluding that business, gross margin increased 66 basis points year-over-year to 24.6%, reflecting continued progress in optimizing our cost structure and product mix, as well as passing through tariff-related price increases to customers.”

Mr. Bennett continued, “GAAP gross margin for Q2 was 21.0%, down 294 basis points from Q2 2024, primarily due to a product mix shift toward the lower-margin cheese conversion business. Excluding that business, gross margin increased 66 basis points year-over-year to 24.6%, reflecting continued progress in optimizing our cost structure and product mix, as well as passing through tariff-related price increases to customers.”

“GAAP net income from continuing operations improved by approximately $119 thousand vs. Q2 2024, driven by a large decline in stock-based compensation in 2025. Adjusted EBITDA, a non-GAAP metric, declined by $631 thousand versus Q2 2024. Our recent strategic actions directly address the primary source of profit pressure in the quarter and represent a deliberate pivot toward higher-margin, scalable operations. Had these actions been in place during Q2, earnings performance would have been meaningfully stronger. We remain focused on high-performing areas such as airline and broadline distribution and our asset-light drop ship business, which continue to show strong potential for scalable, profitable growth,” Mr. Bennett concluded.

ConferenceCall
The Company’s management will hold an investor call on August 13, 2025 at 4:00 PM Eastern Time to discuss the Company's results for the second quarter ended June 30, 2025. At the end of the meeting, the Company will host a question-and-answer session with investors. All interested participants may attend the call on the web or by phone. The Company encourages those who wish to ask questions to join the call virtually through Zoom, rather than on the phone, as Zoom’s “raise hand” feature makes it easier for management to identify questioners. Details for the meeting are as follows:

Join Zoom Meeting: https://us02web.zoom.us/j/88130956199?pwd=Txoke4cMYgis7QqVl5PEjGjraRezoc.1

Meeting ID: 881 3095 6199

Passcode: 987526

One tap mobile +17193594580, 88130956199# US

AboutInnovativeFoodHoldings,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 world’s best artisan food makers with top 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-LookingStatements
This 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, 2024 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/.

InvestorandMediacontact:
Gary Schubert
Chief Financial Officer Innovative Food Holdings, inc. [email protected]

(As Reported)
Innovative Food Holdings, Inc.
Consolidated Balance Sheets June 30, December 31, 2025 2024 (unaudited) ASSETS Current assets Cash and cash equivalents $1,553,555 $2,330,880 Accounts receivable, net 6,916,597 9,039,232 Inventory, net 5,901,009 6,290,488 Other current assets 338,237 238,526 Assets held for sale 5,941,933 5,941,933 Current assets - discontinued operations - 49,315 Total current assets 20,651,331 23,890,374 Property and equipment, net 1,678,212 1,584,878 Right of use assets - operating leases, net 581,504 705,476 Right of use assets - finance leases, net 464,507 524,273 Amortizable intangible assets, net 381,216 424,372 Tradenames and other unamortizable intangible assets 217,000 217,000 Total assets $23,973,770 $27,346,373 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Accounts payable and accrued liabilities $4,187,591 $6,653,622 Accrued separation costs - related parties, current portion 225,559 334,532 Accrued interest 83,207 91,347 Deferred revenue 345,800 349,600 Stock appreciation rights liability 1,125,887 1,353,150 Notes payable, current portion 197,347 190,052 Lease liability - operating leases, current 242,975 239,660 Lease liability - finance leases, current 84,786 147,797 Contingent liability, current 54,430 54,430 Total current liabilities 6,547,582 9,414,190 Note payable, net of discount 8,599,293 8,692,674 Accrued separation costs - related parties, non-current 400,000 457,692 Lease liability - operating leases, non-current 344,843 467,569 Lease liability - finance leases, non-current 76,919 139,591 Total liabilities 15,968,637 19,171,716 Commitments & Contingencies (see note 18) Stockholders’ equity Common stock: $0.0001 par value; 500,000,000 shares authorized; 57,196,294 and 56,009,032 shares issued, and 54,351,997 and 53,164,735 shares outstanding at June 30, 2025 and December 31, 2024, respectively 5,717 5,598 Common stock to be issued; 433,687 and 738,032 shares at June 30, 2025 and December 31, 2024, respectively 42 74 Additional paid-in capital 45,722,436 45,520,121 Treasury stock: 2,644,297 shares outstanding at June 30, 2025 and December 31, 2024 (1,141,372) (1,141,372)Accumulated deficit (36,581,690) (36,209,764)Total stockholders’ equity 8,005,133 8,174,657 Total liabilities and stockholders’ equity $23,973,770 $27,346,373

(As Reported)
Innovative Food Holdings, Inc.
Consolidated Statements of Operations
(unaudited) For the Three For the Three For the Six For the Six Months Ended Months Ended Months Ended Months Ended June 30, June 30, June 30, June 30, 2025 2024 2025 2024 Revenue $21,103,134 $16,624,289 $40,651,700 $32,142,441 Cost of goods sold 16,669,281 12,642,401 31,732,040 24,355,620 Gross margin 4,433,853 3,981,888 8,919,660 7,786,821 Selling, general and administrative expenses 4,189,316 3,834,301 8,898,293 7,813,140 Total operating expenses 4,189,316 3,834,301 8,898,293 7,813,140 Operating income (loss) 244,537 147,587 21,367 (26,319) Other income (expense): Interest expense, net (187,927) (209,487) (397,093) (424,937)Gain on sale of assets - - - 1,807,516 Gain on sale of subsidiary - - - 21,126 Other leasing income 1,900 1,900 3,800 3,800 Total other income (expense) (186,027) (207,587) (393,293) 1,407,505 Net income (loss) before taxes 58,510 (60,000) (371,926) 1,381,186 Income tax expense - - - - Net income (loss) from continuing operations $58,510 $(60,000) $(371,926) $1,381,186 Net (loss) from discontinued operations $- $(43,324) $- $(58,636) Consolidated net income (loss) $58,510 $(103,324) $(371,926) $1,322,550 Net income (loss) per share from continuing operations - basic $0.00 $(0.001) $(0.01) $0.028 Net income (loss) per share from continuing operations - diluted $0.00 $(0.001) $(0.01) $0.027 Net (loss) per share from discontinued operations - basic $- $(0.00) $- $(0.00) Net (loss) per share from discontinued operations - diluted $- $(0.00) $- $(0.00) Weighted average shares outstanding - basic 54,785,684 49,702,026 54,376,253 49,708,112 Weighted average shares outstanding – diluted 54,785,684 51,117,570 54,376,253 51,123,656

(As Reported)
Innovative Food Holdings, Inc.
Consolidated Statements of Cash Flows
(unaudited) For the Six For the Six Months Ended Months Ended June 30, June 30, 2025 2024 Cash flows used in operating activities: Net income (loss) $(371,926) $1,322,550 Adjustments to reconcile net income (loss) to net cash used in operating activities: Gain on disposition of assets - (1,807,516)(Gain) Loss on sale of subsidiaries - (21,126)Depreciation and amortization 218,474 168,562 Amortization of right of use asset 123,972 8,421 Amortization of discount on notes payable 2,568 2,568 Stock based compensation 202,402 208,504 Value of stock appreciation rights (227,263) 531,748 Provision for credit losses 28,310 35,855 Changes in assets and liabilities: Accounts receivable, net 2,094,325 (926,416)Inventory and other current assets, net 289,768 199,167 Accounts payable and accrued liabilities (2,473,041) (3,037,522)Accrued separation costs - related parties (166,665) (287,911)Deferred revenue (3,800) 128,319 Operating lease liability (119,411) (8,421)Net cash used in operating activities (402,287) (3,483,218) Cash flows from investing activities: Acquisition of property and equipment (208,886) (15,857)Cash received from disposition of asset, net of loan payoff - 2,101,185 Net cash provided by (used in) investing activities (208,886) 2,085,328 Cash flows from financing activities: Principal payments on debt (88,654) (43,548)Principal payments financing leases (126,813) (94,841)Cash received from line of credit 500,000 - Principal payments on line of credit (500,000) - Net cash used in financing activities (215,467) (138,389) Decrease in cash and cash equivalents (826,640) (1,536,279) Cash and cash equivalents at beginning of period 2,380,195 5,422,335 Cash and cash equivalents at end of period - continuing operations $1,553,555 $3,767,097 Cash and cash equivalents at end of period - discontinued operations $- $118,959 Cash and cash equivalents at end of period $1,553,555 $3,886,056 Supplemental disclosure of cash flow information: Cash paid during the period for: Interest $409,271 $456,062 Taxes $- $- Non-cash investing and financing activities: Reclassify fixed assets as held for sale $- $5,941,933 Principal and accrued interest paid from escrow to Maple Mark Bank $- $353,815 Issuance of common stock under compensation plans $74 $- Issuance of common stock from common stock to be issued $37 $- Issuance of stock for cashless exercise of options $8 $2 Capitalized interest on financing lease $1,130 $-

InnovativeFoodHoldings,Inc.
ReconciliationofGAAPtoNon-GAAPMeasures
Adjusted EBITDA Calculations
(unaudited) Q2 2025Q2 20242025 YTD2024 YTDNet Income (Loss) From Continuing Operations (GAAP)$58,510$(60,000)$(371,926)$1,381,186Depreciation & Amortization (1)110,172$53,366218,474$163,627Interest expense – net187,927$209,487397,093$424,937Income tax provision$-$-$-$-EBITDA (Non-GAAP) (2)$356,609$202,853$243,641$1,969,750Adjustments: Separation Costs$-$-$-$68,791Other Restructuring Costs$17,782$131,887$25,174$180,087Stock Compensation Expense (3)$(186,657)$518,119$(24,861)$740,252Legal Fees - JIT Lawsuit$-$1,811$-$26,325Gain on Sale of Subsidiaries$-$-$-$(21,126)Other Legal & Transactional$40,574$4,664$328,831$41,823Commission on Sale of Asset$-$-$-$147,300Gain on sale of assets$-$-$-$(1,807,516)Adjusted EBITDA (Non-GAAP) (4)$228,308$859,333$572,785$1,345,686Adjustments: Depreciation$(87,275)$(58,302)$(175,318)$(168,562)Interest expense – net$(187,927)$(209,487)$(397,093)$(424,937)Income tax provision$-$-$-$-Adjusted Net Income (Non-GAAP) (5)$(46,894)$591,544$374$752,187 Adjusted Diluted EPS (Non-GAAP)$(0.001)$0.012$0.000$0.015 Weighted-average diluted shares outstanding (Non-GAAP) (6)54,785,68451,117,57054,376,25351,123,656 Q2 2025Q2 20242025 YTD2024 YTDRevenue (GAAP)$21,103,134$16,624,288$40,651,700$32,142,441Gross profit (GAAP)4,433,8533,981,8888,919,6607,786,821Inventory Reserve$-$129,287$-$129,287Adjusted Gross profit (Non-GAAP) (7)$4,433,853$4,111,175$8,919,660$7,916,108Adjusted Gross profit margin % (Non-GAAP)21.01%24.73%21.94%24.63% Q2 2025Q2 20242025 YTD2024 YTDAdjusted EBITDA (Non-GAAP) (4)$228,308$859,333$572,785$1,345,686Interest Expense -net$(187,927)$(209,487)$(397,093)$(424,937)Income Tax Expense - net$-$-$-$-Maintenance Capital Expenditures (8)$(18,860)$(2,639)$(28,081)$(4,045)Adjusted Free Cash Flow (Non-GAAP) (9)$21,521$647,207$147,611$916,704

(1) Includes non-cash depreciation and amortization charges.
(2) Earnings before interest, taxes, depreciation, and amortization.
(3) Includes stock and options-based compensation and expenses.
(4) Adjusted EBITDA is a non-GAAP metric. Management believes that the presentation of Adjusted EBITDA and other non-GAAP financial measures provides useful information to investors because the information may allow investors to better evaluate ongoing business performance and certain components of the Company’s results. In addition, the Company believes that the presentation of these financial measures enhances an investor’s ability to make period-to-period comparisons of the Company’s operating results. This information should be considered in addition to the results presented in accordance with GAAP, and should not be considered a substitute for the GAAP results.
(5) Adjusted Net Income accounts for the impact of non-core expenses including addback for one-time organizational restructure expenses, gains or losses on sale of assets or subsidiaries, tradename impairments, amortization expense, expense on the extinguishment of debt, and stock related expenses in both 2024 and 2023.
(6) GAAP weighted average shares outstanding.
(7) Adjusted Gross profit is gross profit adjusted to remove the impact of inventory reserve adjustments or non-recurring inventory related gains or losses.
(8) Maintenance Capital Expenditures is a component of “Acquisition of property and equipment (GAAP)” on the consolidated statement of cash flows. It represents management’s assumptions of capital spending to maintain the company’s current level of operations. It does not include expenditures on acquisitions (less cash acquired), nor does it include other capital expenditures made to fund growth of the current business.
(9) Adjusted Free Cash Flow is defined as Adjusted EBITDA less interest expense, income tax expense, and maintenance capital expenditures. The company believes adjusted free cash flow is useful to investors in understanding how existing cash flow from operations before working capital changes and non-recurring items after maintenance capital expenditures (which we believe the best proxy for over time is Adjusted EBITDA less interest expense, income tax expense, and maintenance capital expenditures) is utilized as a source of growing our business. Adjusted Free Cash Flow is not a measure of cash available for discretionary expenditures since the company has certain non-discretionary obligations that were not deducted from the measure.