EMERGE Commerce Ltd reported its strongest quarter in years for the three months ended June 30, 2026, with revenue rising 7.4% to CAD 9.1 million and adjusted EBITDA increasing 7.3% to CAD 1.03 million.
The Toronto-based e-commerce group, which operates brands including Tee 2 Green and truLOCAL, posted its first quarterly revenue above CAD 9 million since early 2023. Gross profit climbed to CAD 3.5 million from CAD 3.1 million a year earlier, while gross margin expanded to 39% from 36.5%, driven by operational efficiencies and inventory management.
Cash and cash equivalents totaled CAD 4.8 million as of June 30, up from CAD 3.5 million a year prior, though operating cash flow declined to CAD 1.5 million from CAD 2.1 million in Q2 2025. The company’s senior credit facility balance stood at CAD 5.85 million, with a variable interest rate of 11%, and matures in October 2027.
CEO Ghassan Halazon highlighted the quarter as a milestone, noting the ninth consecutive quarter of positive revenue growth and the first time adjusted EBITDA exceeded CAD 1 million since late 2021. "This Q2 proved to be no different. In fact, in many ways, this was our best quarter in years across revenue, gross margin, and adjusted EBITDA," he said.
Gross Merchandise Sales reached CAD 11.8 million, up 4% from CAD 11.4 million in the prior-year period. The company’s Viral Loops subsidiary contributed approximately CAD 1 million in annual revenues, while Tee 2 Green’s integration accelerated, with revenue growth nearly 10 times its pre-acquisition pace. The brand’s inventory payment structure spans eight years.
truLOCAL, now in its 10th year, saw customer acquisition costs remain low at CAD 150–175 compared with a CAD 2,000-plus lifetime value, though rising meat and fuel prices in Q1 and Q2 2026 tempered earlier momentum from a "Buy Canadian" trend. The company’s shares were unchanged at CAD 0.08, trading about 14.3% above the 52-week low and roughly 50% below the high.
EMERGE’s cash flow from operating activities totaled CAD 1.5 million, while investing and financing activities used CAD 0.2 million and CAD 0.6 million, respectively. Inventory fair value adjustments added approximately CAD 41,000 for the quarter.
