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Introduction & Market Context
BuildDirect.com Technologies Inc (TSXV:BILD) presented its fourth quarter and full-year 2024 results on April 17, 2025, highlighting a significant turnaround in profitability despite revenue challenges. The company, which operates in the $90+ billion North American flooring market, has been implementing a strategic shift toward a hybrid business model combining e-commerce with brick-and-mortar "Pro Centers."
The company is positioning itself to capitalize on market fragmentation, with 73% of the flooring market consisting of aging local "Mom & Pop" businesses facing succession issues and high-cost operating models. BuildDirect’s strategy involves consolidating a portion of this market through both organic growth and strategic acquisitions.
As shown in the following breakdown of the North American flooring market:
Quarterly Performance Highlights
BuildDirect achieved a significant milestone in Q4 2024 by returning to profitability at the net income level. The company reported Q4 2024 revenue of $16.72 million, a slight decrease from $16.92 million in Q4 2023. However, gross margin expanded by 400 basis points to 39.24%, compared to 35.22% in the same period last year.
The most notable achievement was the company’s swing to positive net income of $0.24 million in Q4 2024, compared to a net loss of $1.97 million in Q4 2023. Adjusted EBITDA for the quarter reached $376,331, representing year-over-year growth of over 415% from $73,069 in Q4 2023.
The following chart illustrates the company’s quarterly financial performance, showing the significant improvement in Adjusted EBITDA:
For the full year 2024, BuildDirect reported revenue of $65.46 million, down from $72.28 million in 2023. Despite the revenue decline, the company improved its bottom line substantially, with a net loss of $1.25 million for 2024, compared to a $3.77 million loss in 2023—a 66.8% improvement. Full-year Adjusted EBITDA increased slightly to $2.19 million from $2.14 million in the previous year.
The income statement summary below highlights the company’s financial performance:
Detailed Financial Analysis
BuildDirect maintained a relatively stable financial position throughout 2024. As of December 31, 2024, the company reported total assets of $27.75 million, up from $25.82 million at the end of Q3 2024. Working capital remained steady at $2.71 million, compared to $2.69 million in the previous quarter.
The company’s cash position stood at $2.35 million at the end of 2024, down slightly from $2.64 million at the end of Q3 2024, but representing a more stable position compared to the previous year. The net change in cash for the full year 2024 improved by 83% compared to 2023, with a decrease of only $0.25 million versus $1.51 million in the previous year.
The following table provides a detailed view of BuildDirect’s financial position:
Cash flow from operating activities generated $2.16 million in 2024, down from $4.02 million in 2023. However, cash used in financing activities decreased significantly to $2.46 million from $5.75 million in the previous year, contributing to the overall improvement in cash management.
Strategic Initiatives
BuildDirect’s growth strategy centers on expanding its network of Pro Centers across North America, with a current footprint of 10 locations: 2 in British Columbia, 1 in California, 6 in Michigan, and 1 in Florida. The company employs a dual approach to expansion, both building new Pro Centers and acquiring existing flooring retailers.
The company’s business model integrates e-commerce with physical locations, creating what it calls a "Pro-focused ecosystem" that includes direct product sourcing and delivery services. This hybrid approach is designed to leverage data from e-commerce to inform physical expansion decisions.
In early 2025, BuildDirect announced the acquisition of Anchor and Yorkshore Flooring Assets for US$593,000, representing approximately 1x EBITDA. This acquisition strengthens the company’s presence in the southeastern U.S., particularly in the Orlando market. In fiscal year 2024, these assets generated unaudited revenue of US$5.8 million and EBITDA of US$661,000.
The details of this strategic acquisition are outlined below:
Additionally, the company reported implementing cost-saving measures expected to yield approximately $900,000 in annualized savings, further supporting its path to improved profitability.
Forward-Looking Statements
Looking ahead to 2025, BuildDirect outlined three key focus areas: Pro Center expansion, scalability and profitability, and EBITDA growth. The company emphasized that its expansion strategy will remain disciplined, with a focus on returns and operational efficiency.
Management highlighted the potential for unlocking operating leverage as the business scales, particularly through the integration of acquisitions and optimization of its distribution network. The recent acquisition of Anchor and Yorkshore assets is expected to provide access to a broader inventory of flooring products and opportunities to leverage BuildDirect’s proprietary supply chain model.
The company’s CEO, Shawn Wilson, and CFO, Kerry Biggs, presented these results and strategic initiatives, emphasizing the foundation being laid for long-term growth through both digital and physical expansion. With its improved profitability metrics and strategic acquisitions, BuildDirect appears to be positioning itself for continued improvement in financial performance despite the challenging revenue environment.
Full presentation:
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