EMERGE Commerce Ltd. reported its strongest quarter in years in the second quarter of 2026, with revenue increasing 7.4% year-over-year to CAD 9.1 million. The Canadian e-commerce company also posted adjusted EBITDA of CAD 1.03 million, up 7.3% from CAD 962,000 in the same period a year earlier.
The results marked the ninth consecutive quarter of positive revenue growth and the seventh consecutive quarter of positive adjusted EBITDA for EMERGE. Gross margin expanded to 39%, compared with 36.5% in Q2 2025, driven by operational efficiencies and the contribution of acquired businesses.
Gross profit rose to CAD 3.5 million, while gross merchandise sales reached CAD 11.8 million. Cash and cash equivalents totaled CAD 4.8 million as of June 30, 2026, an increase of CAD 1.3 million from the end of Q2 2025. Operating cash flow was CAD 1.5 million, down from CAD 2.1 million in the prior-year quarter, reflecting higher working capital needs.
CEO Ghassan Halazon highlighted the company's turnaround progress, noting that Q2 revenue had surpassed CAD 9 million for the first time since early 2023. He emphasized the contributions from recent acquisitions, including Tee 2 Green (T2G) and Viral Loops. T2G, acquired in April 2025, saw its revenue growth accelerate to nearly 10 times its pre-acquisition rate, supported by access to EMERGE's golf ecosystem of over 400,000 subscribers. Viral Loops, acquired in late Q1 2026, contributed its first full quarter of results with approximately CAD 1 million in annual revenues.
The company's truLOCAL brand, celebrating its 10th year, faced margin pressure from rising meat and fuel costs linked to Middle East conflicts and the fading impact of the 2025 'Buy Canadian' trend. Despite these challenges, truLOCAL maintained strong unit economics, with a customer lifetime value exceeding CAD 2,000 compared to a customer acquisition cost of CAD 150-CAD 175, according to Halazon.
EMERGE's senior credit facility debt stood at CAD 5.85 million, down from an original CAD 25 million, with a variable interest rate of 11%. The facility matures in October 2027. The company's stock traded flat at CAD 0.08, near the bottom of its 52-week range of CAD 0.07 to CAD 0.16.
