Innovative Food Holdings Inc. (IVFH) reported a net profit of $366,000 for the second quarter of 2026, despite a 21.5% year-over-year decline in revenue to $13.06 million. Earnings per share from continuing operations totaled $0.01, or $0.007 per diluted share.
Gross margin expanded by 50 basis points to 26.2%, while selling, general and administrative expenses fell 12.4% to $3.0 million. Operating income stood at $395,000, and adjusted EBITDA reached approximately $579,000. Operating cash flow generated $375,000 in the first half of 2026, reversing a $402,000 outflow in the same period of 2025.
Cash and cash equivalents increased to $1.8 million, up from $927,000 at the end of 2025. Stockholders' equity rose to about $8.5 million, while current liabilities declined to roughly $3.5 million. The current ratio improved to 2.88, and return on equity reached 26%.
Revenue declines were broad-based. Digital sales dropped 16.7% due to a transition with the company’s largest digital partner, though excluding that partner, digital revenue rose 6.3% in the quarter and 8.4% year-to-date. National distribution fell 29.2% following customer and product program losses, including the late-quarter exit of a developing airline catering account. Local distribution declined 24%, an improvement from the 31% drop reported in the first quarter.
The Chicago facility contributed approximately $6.8 million to digital revenue in the first six months, roughly half of total digital sales. At the Denver facility, 258 items were added to digital channels by June 30, with 19 generating sales. By early August, the number of transacting items rose to 72, representing about 28% of the listed assortment.
Shares of IVFH slipped 2.08% to $0.24 following the release, remaining within its 52-week range of $0.21 to $0.86.
