DAVIDsTEA (DTEA) Q2 2026 earnings summary

Executive summary

• Sales reached $11.1 million in Q2 2025, up 0.5% year-over-year, with retail and wholesale channels growing 9.1% and 2.5% respectively, while online sales declined 6.7%.

• Net loss was $1.6 million, stable compared to the prior year, reflecting seasonal business patterns.

• Gross profit remained stable at $5.3 million, with a gross margin of 47.2%.

• Retail expansion is underway, including renovations and new store openings in Montreal, Quebec City, and Mississauga.

• Increased marketing spend targets both digital and physical channels ahead of the peak season, which typically generates over 60% of annual sales.

Financial highlights

• Consolidated sales rose 0.5% year-over-year to $11.1 million in Q2 2025.

• Gross profit margin was 47.2%, nearly unchanged from 47.3% in Q2 2024.

• Net loss was $1.6 million; adjusted EBITDA improved to negative $0.2 million from negative $0.3 million year-over-year.

• Cash position at quarter-end was $7.6 million, up from $6.7 million year-over-year but down sequentially.

• Cash flow used in operations increased to $1.5 million, mainly due to higher inventories.

Outlook and guidance

• Over 60% of annual sales are expected in Q3 and Q4, with a strong holiday season anticipated.

• Three new stores are planned over the next 12 months, with renovations and new concept stores underway.

• Increased marketing and experiential initiatives are expected to drive revenue and profitable growth.