Happy Belly Food Group Announces 14th Consecutive Record Quarter, and Third Consecutive Quarter of Positive Net Income from Operations

Rhea-AI Summary

Happy Belly Food Group (OTCQB: HBFGF) reported unaudited Q3 2025 results showing its 14th consecutive record quarter and third consecutive quarter of positive net income from operations.

Key metrics: system sales $19.2M (+125% YoY), total revenues $7.2M (+194% YoY), total product sales $6.0M (+224% YoY), adjusted EBITDA $0.7M (10.4% margin), and net income from operations $0.3M. QSR segmented EBITDA and QSR royalties & fees each surpassed $1.0M in Q3 for the first time. The Company added 12 restaurants in Q3 and reports 75 operating locations following subsequent openings and acquisitions.

Positive

• System sales $19.2M (+125% YoY)
• Total revenues $7.2M (+194% YoY)
• Adjusted EBITDA $0.7M (10.4% margin)
• QSR segmented EBITDA surpassed $1.0M in Q3
• Added 12 restaurants in Q3; 75 total locations

Negative

• Net working capital declined to $2.8M from $3.3M (Dec 31, 2024)
• Cash and equivalents decreased to $3.3M from $3.5M (Dec 31, 2024)
• Net income from operations modest at $0.3M despite large revenue growth

Toronto, Ontario--(Newsfile Corp. - November 26, 2025) - Happy Belly Food Group Inc. (CSE: HBFG) (OTCQB: HBFGF) ("Happy Belly" or the "Company"), a leader in acquiring and scaling emerging food brands across Canada is pleased to announce its unaudited financial results and corporate update for the fiscal quarter ended September 30th, 2025.

"In Q3 2025, Happy Belly Food Group achieved its 14th consecutive record quarter and third consecutive quarter of positive net income from operations. These milestones-including segmented EBITDA for the QSR division surpassing $1.0 million in Q3 and royalties & fees for the QSR division also surpassing $1.0 million in Q3, both marking firsts for the Company-reinforce our reputation as a disciplined, high-growth multi-brand restaurant operator with a predictable growth model. They highlight our ongoing mission to become Canada's leading acquirer and scaler of emerging food brands while driving long-term shareholder value," said Sean Black, Chief Executive Officer.

"We have a lot to be proud of as a team, and as an organization. We have truly built a predictable and repeatable growth model that saw our system sales more than double, driving a 125% increase versus the same quarter last year. We successfully added 12 new restaurant locations in Q3 to the Happy Belly portfolio through a mixture of organic and inorganic growth, with another 2 restaurant locations added through our organic growth model so far in Q4, giving Happy Belly 75 operating locations in total."

"I would like to personally congratulate all brand leaders, franchisees, team members and cross functional teams for a truly great quarter. The team continues to execute our aggressive growth plan which has led to significant growth in Q3. System sales reached $19.2M (+125%), and total revenues of $7.2M (+188%) supported by our adjusted EBITDA reaching a new high of 10.4% in Q3."

"Our core principles have been the 3P's: People, Product and Process, while staying operationally and financially disciplined throughout our execution plan. These strong results are a testament to the team-oriented culture we have built at Happy Belly. Our management team and brand partners are working together to support our franchisees in national and US expansion as we anticipate to deliver significant organic growth beyond our original expectations in 2026. With a clear focus on growth, we believe our best chapters are still to come."

"We are just getting started," said Sean Black.

Q3 2025 Financial Highlights

• System wide sales across Quick Service Restaurants (QSR) totaled $19.2M in the third quarter of fiscal 2025, up 125% versus the same quarter last year (2024 - $8.5M). The increase is attributed to organic baseline restaurant growth, alongside increased restaurant count, which reached 73 operating restaurants at the end of Q3 2025, up 109% versus 35 in the prior year.
  
  
• Total operating revenues, vendor rebates and interest income totaled $7.2M in Q3 2025, up 194% versus the same quarter last year (2024 - $2.5M), and for the nine months ended September 30, 2025, $16.6M up 149% from 2024 (2024-$6.7M).
  
  
• Year-over-year growth was driven by continued sales growth in both the Quick Serve Restaurant (QSR) and Consumer Product Goods (CPG) segments, multiple business acquisitions in the past twelve months, and new restaurants being added to the portfolio (12 additional restaurants during Q3 2025).
  
  
• Total product sales totaled $6.0 in the third quarter of 2025, up 224% versus the same quarter last year (2024 - $1.9M). In addition, royalties and franchise fee revenues reached $1.1M during the quarter, up 297% from the prior year (2024 - $0.3M), which was driven by an increase in royalties collected from 55 franchised restaurants in the system.
  
  
• Adjusted EBITDA reached $0.7M or 10.4% in the third quarter of fiscal 2025, up from $0.1M or 4.2% in the same quarter last year. During the third quarter of fiscal 2025, net income from operations was $0.3M up from a net loss of $0.1M in the same quarter of 2024.
  
  
• Segmented EBITDA for the QSR division surpassed $1.0M in Q3, marking a first for the Company.
  
  
• Royalties & Fees for the QSR division surpassed $1.0M in Q3, marking a first for the Company.
  
  
• Net working capital remains healthy at $2.8M as of September 30, 2025 (December 31, 2024 - $3.3M). Total cash and cash equivalents were $3.3M as of September 30, 2025 (December 31, 2024 -$3.5M). Furthermore, cash flows before non-cash working capital was positive $0.7M in Q3 2025 up from $0.1M in the same quarter last year.
  
  
• In the third quarter, the Company generated $0.8M in cash flow from operating activities up from negative $(0.2)M in the same quarter of 2024.
  
  
• During Q3 2025, Happy Belly added 12 restaurants to its growing portfolio. Heal Wellness opened two new locations in Aurora and Kensington. Rosie's Burgers opened a new location in Bridgeland. The acquisition of Salus Fresh Foods added nine new locations in the GTA. Following the close of Q3, Happy Belly further expanded by opening iQ foods on Avenue Rd and Yolks on Bloor St West. These additions bring the total number of restaurants in the Happy Belly portfolio to 75.

Q1 2025 CORPORATE HIGHLIGHTS

July 4, 2025 - Happy Belly Food Group's Heal Wellness QSR Announces the Opening of Its Newest Location in Aurora, Ontario

July 7, 2025 - Happy Belly's Yolk's Breakfast Signs 1st Toronto Location and 1st Multi-Unit Franchisee

July 8, 2025 - Happy Belly Food Group's Rosie's Burgers Announces the Signing of a Multi-Unit Franchise Agreement for 10 Stores with Carma Hospitality for the Greater Montreal Area of Quebec

July 9, 2025 - Happy Belly Food Group's Heal Wellness QSR Announces the Opening of Its Newest Location in Calgary's Kensington Neighborhood, Alberta

July 10, 2025 - Happy Belly's Heal Wellness QSR Expands Alberta Footprint as Existing Multi-Unit Franchisee Increases Commitment from 10 to 15 Locations

July 11, 2025 - Happy Belly Food Group's Rosie's Burgers Announces the Signing of a Franchise Agreement and Real Estate Location in Calgary's Marda Loop District, Alberta

July 21, 2025 - Happy Belly Food Group's Rosie's Burgers Announces the Signing of a Franchise Agreement and Real Estate Location for Waterloo, Ontario's Uptown Neighborhood

July 22, 2025 - Happy Belly Food Group's Heal Wellness QSR Secures Real-Estate Location for it's Franchisee in the City of Grand Prairie, Alberta

July 25, 2025 - Happy Belly Food Group Announces the Passing of Chief Financial Officer Gary Fung

August 5, 2025 - Happy Belly Food Group's Rosie's Burgers Announces the Signing of a Second Real Estate Location and Franchise Agreement in Atlantic Canada for the City of Halifax, Nova Scotia

August 6, 2025 - Happy Belly Food Group's Rosie's Burgers Announces the Signing of a Franchise Agreement and Secured Real Estate Location in Edmonton's Brewery District

August 7, 2025 - Happy Belly Food Group's Rosie's Burgers Announces the Signing of a Franchise Agreement and Secured Location in Abbotsford, British Columbia

August 8, 2025 - Happy Belly Food Group's Yolks Breakfast Signs Franchise Agreement and Real-Estate Location in the City of Chilliwack, British Columbia

August 11, 2025 - Happy Belly Food Group Signs 3-YR Exclusive Contract with Coca-Cola Canada Bottling Company

August 12, 2025 - Happy Belly Food Group's Heal Wellness Signs Multi-Unit Agreement for Central Alberta and Secures First Real-Estate Location in Red Deer, Alberta

August 13, 2025 - Happy Belly Food Group's Heal Wellness Secures Real-Estate Location in Downtown Oakville, Ontario

August 14, 2025 - Happy Belly Food Group's Heal Wellness QSR Announces the Signing of a Franchise Agreement and Real-Estate Location in Calgary's Britannia Neighborhood, Alberta

August 15, 2025 - Happy Belly Food Groups Heal Wellness QSR Announces the Signing of Its First Franchise Agreement for the Province of Quebec

August 18, 2025 - Happy Belly Food Group Announces Release Date for Second Quarter Results

August 19, 2025 - Happy Belly Food Groups Heal Wellness QSR Announces the Signing of its Second Franchise Agreement for the Province of Quebec

August 21, 2025 - Happy Belly Food Group Closes Acquisition of SALUS Fresh Foods QSR Restaurant Chain

August 25, 2025 - Happy Belly's Heal Wellness Signs Real Estate Location With Muli-Unit Franchisee At University of Victoria

August 26, 2025 - Happy Belly Food Group Announces 13th Consecutive Record Quarter, and Increased Positive Net Income from Operations

August 28, 2025 - Happy Belly Food Group's iQ Food Co. QSR Signs 10-Unit Area Development Agreement in Atlantic Canada

September 8, 2025 - Happy Belly Food Group Appoints Vice President of Finance

September 11, 2025 - Happy Belly Food Group's Heal Wellness QSR Announces Their Multi Unit Franchisee Has Signed a New Location in South Surrey, British Columbia

September 12, 2025 - Happy Belly Food Group's Smash Burger Brand Rosie's Burgers Announces the Opening of Its Newest Location in Calgary, Alberta

September 15, 2025 - Happy Belly Food Group's Heal Wellness QSR Announces the Signing of a Franchise Agreement for Collingwood, Ontario

September 25, 2025 - Happy Belly Food Group's Smash Burger Brand Rosie's Burgers Secures 1st Real Estate Location in Quebec

September 29, 2025 - Happy Belly Food Group's Heal Wellness QSR Announces the Signing of a Franchise Agreement for Midtown Toronto, Ontario

September 30, 2025 - Happy Belly Food Group Closes Earn-Out Agreement of Via Cibo Restaurant Chain

SUBSEQUENT EVENTS

October 1, 2025 - Happy Belly Food Group's Heal Wellness QSR Announces the Signing of 1st Real-Estate Location in Montreal, Quebec

October 2, 2025 - Happy Belly Food Group Enters into Definitive Agreement in Respect of Call Option to Purchase Remaining 50% of Heal Wellness

October 3, 2025 - Happy Belly Food Group Announces Appointment of Dan Haroun to Its Board of Directors

October 3, 2025 - Happy Belly Food Group Announces Phase II Executive and Board Compensation Plan to Drive Long-Term Shareholder Value

October 6, 2025 - Happy Belly Food Group's Heal Wellness Signs 1st Ottawa, Ontario Real-Estate Location with Multi-Unit & Multi-Branded Franchisee

October 7, 2025 - Happy Belly Food Group Signs Real Estate for Corporate Combo Store of iQ Food Co. and Heal Wellness in Toronto, Ontario

October 9, 2025 - Happy Belly Food Group Announces New Franchise Agreement and Real Estate Signed for Heal Wellness in Cochrane, Alberta

October 10, 2025 - Happy Belly Food Group Announces New Franchise Agreement Signed for Heal Wellness in Barrie, Ontario

October 14, 2025 - Happy Belly Food Group Announces New Franchise Agreement and Real Estate Secured for Heal Wellness in Airdrie, Alberta

October 17, 2025 - Happy Belly Food Group's iQ Food Co. Announces Grand Opening of Newest Location in Toronto's Avenue & Lawrence Neighborhood

October 23, 2025 - Happy Belly Food Group Announces Secured Real Estate for Heal Wellness in Toronto's Eaton Center

October 31, 2025 - Happy Belly Food Group's Yolks Breakfast Signs Franchise Agreement for the City of Edmonton, Alberta

November 6, 2025 - Happy Belly Food Group's Heal Wellness QSR Secures First U.S. Real-Estate Location in Lubbock, Texas

November 7, 2025 - Happy Belly Food Group's Yolk's Breakfast Announces Grand Opening of Newest Location in Toronto's Bloor West Village

November 11, 2025 - Happy Belly Food Group's Smash Burger Brand Rosie's Burgers QSR Secures First U.S. Real-Estate Location in Texas

November 13, 2025 - Happy Belly Food Group's Heal Wellness QSR Announces the Signing of a Franchise Agreement for London, Ontario

November 14, 2025 - Happy Belly Food Group's Heal Wellness QSR Announces the Signing of a Franchise Agreement for Bradford, Ontario

FOOTNOTES:
1. Adjusted EBITDA Is a non-IFRS financial measure which does not have a standardized meaning prescribed by IFRS. Adjusted EBITDA and Adjusted EBITDA Margin are used by management as supplemental measures to review and assess operating performance and to provide a more complete understanding of factors and trends impacting the Company's business. Management believes Adjusted EBITDA are useful measures of operating performance and the Company's ability to generate cash-based earnings, as they provide a more relevant position of operating results by excluding the effects of financing and investing activities, which removes the effects of interest, depreciation and amortization expenses as well as other expenses, as described, that are not reflective of the Company's underlying business. This non-IFRS measure is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

Adjusted EBITDA is defined as net comprehensive income or (loss), excluding interest, taxes, depreciation and amortization (EBITDA), adjusted for share-based compensation, gain (loss) on equity investments and sublease, expected credit loss and non-recurring expenses.

Franchising
For franchising inquiries please see www.happybellyfg.com/franchise-with-us/ or contact us at hello@happybellyfg.com.

About Happy Belly Food Group
Happy Belly Food Group Inc. (CSE: HBFG) (OTCQB: HBFGF) ("Happy Belly" or the "Company") is a leader in acquiring and scaling emerging food brands across Canada.

 

Happy Belly 1

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Sean Black
Co-founder, Chief Executive Officer

Shawn Moniz
Co-founder, Chief Operating Officer

FOR FURTHER INFORMATION, PLEASE VISIT:
www: www.happybellyfg.com or email hello@happybellyfg.com
If you wish to contact us please call: 1-877-589-8805

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this press release, which has been prepared by management.

Cautionary Note Regarding Forward-Looking Statements

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to the Company within the meaning of applicable securities laws. Forward-Looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur and include the future performance of Happy Belly and her subsidiaries. Forward-Looking statements are based on the opinions and estimates at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. There are uncertainties inherent in forward-looking information, including factors beyond the Company's control. There are no assurances that the business plans for Happy Belly described in this news release will come into effect on the terms or time frame described herein. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. For a description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company's Management's Discussion and Analysis and other disclosure filings with Canadian securities regulators, which are posted on www.sedarplus.ca.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/276019

FAQ

What were Happy Belly (HBFGF) system sales and revenue in Q3 2025?

Happy Belly reported system sales of $19.2M (+125% YoY) and total revenues of $7.2M in Q3 2025.

How profitable was Happy Belly (HBFGF) in Q3 2025 and what was adjusted EBITDA?

Q3 2025 showed net income from operations of $0.3M and adjusted EBITDA of $0.7M (10.4% margin).

How many restaurants did Happy Belly (HBFGF) add in Q3 2025 and what is the total count?

Happy Belly added 12 restaurants in Q3 2025, bringing the portfolio to 75 operating locations after subsequent additions.

Did Happy Belly (HBFGF) report any first-time QSR milestones in Q3 2025?

Yes. QSR segmented EBITDA and QSR royalties & fees each surpassed $1.0M in Q3 2025, both firsts for the company.

What cash and working capital position did Happy Belly (HBFGF) report as of September 30, 2025?

As of September 30, 2025, Happy Belly reported cash and equivalents $3.3M and net working capital $2.8M.

What drove Happy Belly's (HBFGF) year-over-year growth in Q3 2025?

Growth was driven by increased QSR and CPG sales, multiple acquisitions including Salus Fresh Foods, and a higher restaurant count.