Groupe Dynamite (GRGD) investor relations material

Executive summary

• Achieved record Q3 2025 results with 40.3% revenue growth to $363 million, 31.6% comparable store sales growth, and a 40.2% adjusted EBITDA margin, driven by strong execution, brand elevation, and increased traffic.

• Gross margin reached 66.1%, the highest in over three years, and operating income rose 90.3% to $120.1 million.

• Strong customer engagement and loyalty, with notable new customer growth in both Canada and the U.S.

• Continued U.S. expansion with eight new Garage stores, including entry into three new states, and plans for U.K. market entry in early 2026.

• Leadership team with extensive retail experience and a values-driven culture supports long-term value creation.

Financial highlights

• Total revenue rose 40.3% year over year to $363 million for Q3 2025; online revenue grew 43.3% to $63.2 million.

• Gross profit increased 47.3% to $240 million; gross margin expanded 310 basis points to 66.1%.

• Adjusted SG&A rose to $95.8 million, but improved 340 basis points as a percentage of sales.

• Operating income up 90.3% to $120.1 million; net earnings more than doubled to $81.5 million.

• Free cash flow nearly tripled to $119.5 million; net leverage improved to 0.45x.

Outlook and guidance

• Raised full-year comparable store sales growth guidance to 25.5%–27.5% and adjusted EBITDA margin outlook to 35%–37% for fiscal 2025.

• Fiscal 2025 CapEx guidance revised down to $85–95 million, reflecting cost savings and timing.

• Expecting 8–9 net store openings in fiscal 2025; 18–20 gross new stores planned.

• Preliminary fiscal 2026 outlook: high single-digit comparable store sales growth, continued margin expansion, and 18–20 new North American stores plus five in the U.K.