HOSTNYSERetail-Grocery StoresUS GAAP · USD

Healthy Choice Wellness Corp

Host Digital Inc. is a U.S.-based retail grocery business that sells merchandise through retail grocery stores and related food service channels. The company also earns vendor-funded co-op advertising revenue by promoting suppliers’ products through its sales channels.

Revenue78.2m USD
+12.7 %y/y
Operating profit (EBIT)-2.5m USD
−39.8 %y/y
EBIT margin-3.2%
−0.6 ppy/y
Net income-3.9m USD
+12.7 %y/y
Free cash flow0.7m USD
+120.4 %y/y

Fiscal year 2025 · change from previous year

Development 2023–2025

-20020406080m USD2023: 56 m USD2023: EBIT -11 m USD20232024: 69 m USD2024: EBIT -1.8 m USD20242025: 78 m USD2025: EBIT -2.5 m USD202578-2.5
RevenueOperating profit (EBIT)

Business

Share of revenue
Retail Grocery91 %

In-store grocery merchandise sold to consumers at point of sale.

Food Service9 %

Prepared food and related offerings sold through the company's food service operations.

Co-op Advertising0 %

Vendor-funded advertising billed for promoting suppliers' products in sales channels.

Products

Reported · share of revenue
90.8%9.2%FY2025100 %
  • Retail Grocery90.8 %
  • Food Service Restaurant9.2 %

Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

The company serves household shoppers who buy groceries and everyday essentials through its retail stores. It also serves customers of its food service operations and commercial vendor partners that pay for co-op advertising placements. Revenue is generated mainly at the point of sale, so customer traffic, basket size, and vendor promotional participation matter directly to sales performance.

Retail grocery shoppers

Consumers buying groceries and household staples in-store for immediate consumption or home use.

Food service customers

Customers purchasing prepared food and related items from the company's food service operations.

Vendor advertisers

Manufacturers and suppliers that pay for advertising and promotional placement in the company's channels.

Strategy

The company focuses on operating retail grocery stores and related food service while using vendor promotions and co-op advertising to support sales channels. Management also references retail expansion, indicating an ongoing emphasis on physical footprint and channel development.

Store and channel expansionMedium term

Broader retail presence can increase access to customers and support sales growth.

Promotional effectivenessShort term

Discounts, coupons, rebates, and incentives directly affect traffic, conversion, and net revenue.

Vendor monetizationMedium term

Advertising billed to vendors provides a non-merchandise revenue stream tied to store media value.

Geography

Host Digital Inc. operates in the United States, and the report does not disclose material foreign operations. Its business is tied to local store traffic, regional competition, and U.S. consumer demand for grocery and food service purchases.

Risks

The company is exposed to execution risk in grocery retail, including inventory markdowns, shrink, and competitive pricing pressure. Its promotional model requires judgment in estimating rebates, coupons, and returns, while cybersecurity, IT controls, and capital access are important operational and financing risks flagged in the report.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Inventory obsolescence and markdowns1Promotional and return estimate error2Cybersecurity and IT control weaknesses3Capital and equity market dependence4Competition and customer demand5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Inventory obsolescence and markdownsImpact: HighLikelihood: High

    Merchandise is carried at lower of cost and net realizable value, so weak sell-through forces write-downs.

    Exposure: Retail grocery inventory

  2. Promotional and return estimate errorImpact: HighLikelihood: High

    Revenue is reduced by discounts, rebates, coupons, and return allowances that require quarterly judgment.

    Exposure: Revenue recognition

  3. Cybersecurity and IT control weaknessesImpact: HighLikelihood: High

    The report highlights access, change-management, and cybersecurity control deficiencies across systems and stores.

    Exposure: Systems and POS operations

  4. Capital and equity market dependenceImpact: HighLikelihood: Medium

    The filing explicitly references cash resources, authorized stock, and the ability to raise capital.

    Exposure: Corporate liquidity

  5. Competition and customer demandImpact: MediumLikelihood: Medium

    Grocery retail depends on local customer acceptance, pricing, and repeat traffic in each trade area.

    Exposure: Store economics

Accounting

Judgemental items
Variable consideration

Discounts, rebates, coupons, refunds, and returns must be estimated and netted from revenue.

Impact: Directly affects reported net sales and quarterly comparability

Co-op advertising revenue

Vendor advertising is recognized when promotional materials are delivered in the sales channels.

Impact: Can create timing differences between billing and revenue recognition

Inventory valuation

Inventories are measured at lower of cost and net realizable value using average cost.

Impact: Write-downs reduce gross margin when merchandise moves slowly

Goodwill impairment

Management uses discounted cash flow and market assumptions to test goodwill for impairment.

Impact: Non-cash charges could be significant if assumptions weaken

Credit losses

Accounts receivable allowance depends on customer credit history and current conditions.

Impact: Affects earnings and collectability of vendor billing receivables

Publicly listed companies with a comparable business focus.

Last updated: 28/09/2026