Kits Eyecare (KITS) investor relations material

Executive summary

• Achieved record Q1 2026 revenue of CAD 57.5 million, up 23% year-over-year (27% in constant currency), marking the 14th consecutive quarter of organic revenue growth above 20%.

• Glasses revenue surged 61% year-over-year to CAD 10.8 million, now 18.8% of total revenue, with over 156,000 units delivered and 24% sequential growth.

• Adjusted EBITDA reached a record CAD 4.1 million (7.2% of revenue), the highest in company history, with 14 consecutive quarters of positive results.

• Repeat revenue represented 63.9% of total revenue, with 99,900–100,000 new customers acquired and a two-year active customer base of over 1.1 million.

• Ended the quarter with CAD 19 million in cash and zero long-term debt.

Financial highlights

• Gross profit was CAD 23.5 million, up 37.5% year-over-year, with gross margin expanding to 40.9% (includes CAD 2.1 million non-recurring tariff recovery).

• Excluding the non-recurring tariff recovery, underlying gross margin was over 37%.

• Marketing expense was 18.9% of revenue, up from 13.5% year-over-year, due to reinvestment of the tariff recovery.

• Fulfillment and G&A expenses improved to 10.5% and 5.7% of revenue, respectively.

• Adjusted EBITDA margin was 7.2% in Q1 2026.

Outlook and guidance

• Q2 2026 revenue projected between CAD 57 million and CAD 59 million, with adjusted EBITDA margins expected between 3% and 5%.

• Annual revenue growth for 2026 expected at 25%-30% in constant currency, with some seasonality anticipated.

• Long-term gross margin target is north of 50% as glasses scale and premium mix increases.