DAVIDsTEA (DTEA) Q3 2025 earnings summary

Executive summary

• Consolidated sales increased 15.6% year-over-year to CAD 14 million in Q3 2024, with double-digit growth across all channels.

• Gross profit margin improved to 51.5% from 37.9% in the prior year, reflecting operational efficiencies.

• Net loss for Q3 2024 was CAD 1.6 million, a significant improvement from CAD 3.7 million loss in Q3 2023; Adjusted EBITDA reached CAD 800,000, up from negative CAD 2.5 million.

• Opened two flagship stores in Montreal, expanding physical presence to 20 stores in Canada, with new locations delivering strong early results.

• Positive cash flow from operations achieved for the first time in recent memory, with cash position at CAD 7.9 million.

Financial highlights

• Canadian sales grew 13.8% to CAD 12 million; U.S. sales rose 27.6% to CAD 2 million compared to Q3 2023.

• Online sales increased 11.4% to CAD 6.3 million, retail sales up 19.2% to CAD 4.7 million, and wholesale up 19.3% to CAD 3 million year-over-year.

• Gross profit rose 56.8% to CAD 7.2 million, driven by higher sales, improved margins, and lower fulfillment costs.

• Adjusted net income was CAD 12,000, compared to an adjusted net loss of CAD 3.5 million in Q3 2023.

• Working capital stood at CAD 10.4 million at quarter-end.

Outlook and guidance

• Sustained profitability targeted for 2025, with focus on revenue growth, margin improvement, and cost discipline.

• Plans to significantly expand store footprint over the next three years to meet growing demand and achieve profitable growth.