EMERGE Commerce Hits Profitability on Niche E-Commerce Success

TORONTO, ON – February 10, 2026 – EMERGE Commerce Ltd. (TSXV: ECOM) today signaled a significant financial turnaround, releasing strong preliminary results for the fourth quarter and full year 2025 that showcase substantial growth and a successful return to profitability. The Toronto-based e-commerce portfolio company reported a 43% year-over-year surge in full-year revenue to $27.6 million and a dramatic swing in profitability, posting an expected Adjusted EBITDA of $1.5 million, a $2 million improvement from the previous year's loss.

The preliminary figures point to a company hitting its stride after a period of strategic realignment. Fourth-quarter revenue climbed 32% to $7.0 million compared to the same period in 2024. More notably, Adjusted EBITDA for the quarter is projected to be between $200,000 and $250,000, a massive leap from just $12,000 a year prior. This performance also bolstered the company's balance sheet, with its cash position growing to $4.1 million by year-end.

A Strategic Turnaround to Profitability

The impressive 2025 results mark a pivotal moment for EMERGE, validating its "EMERGE 3.0" strategy focused on centralization, operational synergy, and a disciplined approach to generating positive cash flow. The company has successfully shifted from a period of accumulating brands to optimizing its existing portfolio, a move that is now clearly paying dividends.

The full-year Adjusted EBITDA of $1.5 million stands in stark contrast to the $473,000 loss reported for 2024. This turnaround demonstrates a fundamental improvement in the company's operational health and its ability to generate sustainable earnings from its collection of niche e-commerce brands.

"With these results, we can now confidently say that EMERGE has delivered on its 3 core operational objectives for 2025, achieving organic revenue growth, positive Adj. EBITDA and positive cash flow for the full year," said Ghassan Halazon, EMERGE founder and CEO, in the company's press release. Halazon's comments underscore the successful execution of a plan that prioritized financial stability and profitable growth over expansion at any cost. This disciplined approach appears to have resonated with a market that has become more discerning about the profitability of tech and e-commerce ventures.

Mastering the Micro-Markets of Grocery and Golf

EMERGE's success is rooted in its deep focus on two specific and resilient consumer verticals: premium groceries and golf. Rather than competing in the hyper-competitive general e-commerce space, the company has carved out leadership positions within these dedicated micro-markets.

The grocery vertical is anchored by truLOCAL, a Canadian meat and seafood subscription service that connects consumers with local farmers. The brand has effectively tapped into the powerful "Buy Canadian" sentiment, which has driven significant customer acquisition. This focus on domestic supply chains also insulates the business from potential cross-border trade disruptions and tariffs, providing a layer of stability. The fourth quarter was particularly strong, buoyed by record Business-to-Business (B2B) sales exceeding $1 million, nearly doubling the B2B performance from the previous year as companies turned to truLOCAL for corporate holiday gifting.

In the golf vertical, EMERGE operates a portfolio including UnderPar, JustGolfStuff, and its recent acquisition, Tee 2 Green (T2G). This segment has proven to be what the company describes as "recession-friendly," offering value-conscious consumers discounted access to tee times, apparel, and equipment. The strategic acquisition of T2G in mid-2025 was a standout success, with the new addition reportedly exceeding management's expectations in its first quarter under EMERGE's ownership by leveraging targeted digital advertising and cross-brand synergies.

A Hybrid Model Driving Growth and Resilience

Underpinning the company's performance is a sophisticated hybrid business model that blends subscription services, marketplace offerings, and traditional retail. This diversified approach creates multiple revenue streams and customer touchpoints, fostering a more resilient and integrated ecosystem than a single-model business could achieve.

The subscription model of truLOCAL provides a predictable, recurring revenue base and fosters long-term customer relationships. In contrast, the marketplace model of UnderPar, which offers discounted tee times, thrives on transaction volume and seasonal demand. This is complemented by the direct-to-consumer retail of golf equipment and apparel through JustGolfStuff and Tee 2 Green.

This blend allows EMERGE to capture a wider share of its customers' wallets and leverage data across its brands for effective cross-promotion. For example, a customer who buys a discounted round of golf on UnderPar can be marketed to with offers for new apparel from JustGolfStuff. This synergy is a core component of the "EMERGE 3.0" strategy, transforming a collection of separate businesses into a cohesive and efficient commercial engine. The growth in truLOCAL's B2B channel further illustrates this flexibility, adapting a consumer subscription brand for a lucrative wholesale and corporate market.

A Solid Foundation for the Road Ahead

While the announced results are preliminary and subject to final audit, they paint a picture of a company on solid financial footing. The strengthened cash position of $4.1 million provides the resources and flexibility to pursue further growth, including the potential reactivation of its merger and acquisition program, with a stated focus on acquiring cash-flow positive businesses that can be integrated into its existing verticals.

The company operates in competitive fields, with other subscription meat services and golf booking platforms vying for consumer attention. However, EMERGE's focused strategy, proven ability to integrate acquisitions successfully, and strong brand positioning within its Canadian niches appear to have given it a distinct edge. The consumer trends toward supporting local businesses and seeking value in leisure activities continue to provide strong tailwinds for its core brands.

Investors and market watchers will be looking forward to the release of the audited full-year results, expected in late April 2026, which will provide a complete and finalized picture of this successful year. Based on this preliminary report, EMERGE has successfully navigated the challenging e-commerce landscape to build a profitable and growing enterprise.