Innovative Food Holdings Reports 26.9% Revenue Growth and Improved Operating Income for Q2 2025

Innovative Food Holdings, Inc. (IVFH) reported significant financial performance improvements in its latest quarterly filing for the period ending June 30, 2025. The company achieved revenues of $21.1 million, marking a 26.9% increase from $16.6 million in the same quarter of the previous year. For the first half of 2025, total revenues reached $40.7 million, up 26.5% from $32.1 million in the prior year. The gross margin for the quarter was 21%, a decrease from 24% in the previous year, primarily due to a shift in sales mix towards lower-margin cheese products, which accounted for 17.5% of sales compared to none in the prior year.

The company experienced a notable increase in operating income, reporting $244,537 for the three months ended June 30, 2025, compared to $147,587 in the same period last year. However, the net income from continuing operations was $58,510, a recovery from a loss of $60,000 in the prior year. For the six-month period, the company reported a net loss of $371,926, a significant decline from a net income of $1.4 million in the same period of 2024, largely attributed to the impact of divestitures and restructuring efforts.

Strategically, IVFH has focused on enhancing its business-to-business (B2B) operations while divesting from direct-to-consumer (D2C) segments. The company sold several subsidiaries, including GROW and Oasis, and has shifted its resources towards its national distribution and local distribution channels, which saw revenue increases of 139.1% and 67.4%, respectively. The national distribution segment generated $7.6 million in revenue, while local distribution contributed $4.2 million, reflecting the successful integration of acquisitions such as LoCo Foods and Golden Organics.

Operationally, the company reported a decrease in accounts receivable, which fell by $2.1 million, indicating improved cash flow management. The total current assets decreased to $20.7 million from $23.9 million at the end of 2024, while current liabilities also decreased significantly to $6.5 million from $9.4 million. The company’s employee headcount has increased to support its expanding operations, particularly in the national distribution sector. As of June 30, 2025, IVFH had a net working capital of $14.3 million, providing a solid liquidity position for future growth.

Looking ahead, IVFH anticipates continued growth in its B2B operations, particularly in the national distribution segment, while managing the challenges posed by inflation and market conditions. The company is also in the process of executing a definitive plan to sell its Pennsylvania facility, which is expected to generate approximately $9.7 million in net proceeds. These funds will be utilized to pay down associated debts and support ongoing operational improvements.