Troubled online grocery company Goodfood (FOOD-T) has had a tumultuous few months that saw its two cofounders leave, a Canadian Food Inspection Agency (CFIA) license suspension and lower revenue and a greater loss as a result.

“We are executing a necessary reset while absorbing short-term disruption. During Q2 operational factors — including a temporary regulatory-related disruption — impacted order volumes and created cost inefficiencies, particularly in logistics. These pressures revealed that they were also temporary,” Najib Maalouf, president and chief operating officer said during an investor call on April 21, to detail the company’s Q2 results.

Net sales were $23 million in the second quarter, lower than the $30.5 million during the same period last year. This resulted in a net loss of $7 million compared to $2 million in Q2 2025.

While the numbers showed continued challenges, management has put in a number of measures to help the company weather the storm, he said.

“We responded quickly with disciplined cost actions, namely reducing marketing intensity, optimizing headcount and tightening our focus on profitable demand. As a result, we continue to see strength in average order value and customer quality.”

Suspension of license by CFIA

On Dec. 30 last year, the CFIA suspended the company’s food handling license. The move was related to issues with its preventive controls, according to the CFIA. It was eventually lifted on Jan. 8

This caused lower sales and customer volumes, according to Vanessa Hadida, vice-president of finance, who also spoke during the investor’s call

“Net sales and active customers declined year over year, reaching $22.5 million and 59,000 respectively. These figures reflect three primary factors: the temporary license disruptions during the quarter, lower order frequency, and our intentional pullback in marketing and incentives.”

Goodfood will work on “prioritizing revenue quality over volume,” Hadida said. “Higher basket sizes and lower discounting are driving the improved unit economics. This is an important point. While the top line is lower, the underlying revenue base is becoming more efficient and more profitable on a per-customer basis.”

While these pressures contributed to negative numbers, the company expects things to change.

“That said, we view a significant portion of these results as transitional in nature, rather than a structural change. Indeed, when the license suspension occurred, we shipped Ontario orders from our Calgary facility, which is significantly more costly than shipping from our Montreal facility, which we have now resumed,” Hadida said.

However, there remains “heightened fuel costs and food inflation,” Hadida said and this “remains a meaningful headwind” for Goodfood to contend with.

The meeting was the last one for the tenure of Ross Aouameur, who is chief financial officer until April 22. He will be replaced by Hadida.

Improvements to product lines

To move forward, the company is planning changes to its offerings, Maalouf said.

“We have introduced a simpler menu that is designed to fit our customers’ busy lives. We also increased portion sizes and have sourced better ingredients to ensure the consistent quality of our subscriber’s experience. This is already contributing to stronger basket size and is expected to support retention and lifetime value.”

The executives took responsibility for the company’s troubles.

“Also, for fiscal 2026 both Najib and I have made the deliberate decision to forego our paid salary. This is a voluntary choice. Our common agreements remain unchanged but we believe that in this phase of the in-company transformation, accountability needs to start at the top,” chief executive officer Selim Bassoul said during the meeting.

As well, Bassoul pointed to a line item that is hindering Goodfood’s performance. “We have $44 million of convertible debt on the balance sheet with large interest payment that is hindering our transformation and ability to invest in the business.”

“We are focused on strengthening the business while evaluating a range of financial alternatives to address our debt situation and enhance long-term value, while not depending on external improvement. We are focused on what we control, which are execution, cost, structure and product relevance,” he said.

The company's shares were trading down on April 21, dropping more than 23 per cent at one point.