DAVIDsTEA (DTEA) Q3 2026 earnings summary

Executive summary

• Sales reached CAD 12.6 million in Q3 2025, down 10.2% year-over-year, with a net loss of CAD 0.6 million, an improvement from CAD 1.6 million in Q3 2024.

• Brick-and-mortar and comparable store sales grew 2.9% year-over-year, building on an 18% surge in the prior year, while online and wholesale channels declined due to economic softness, U.S. tariffs, and the end of the de minimis exception.

• SG&A expenses decreased 26.5% to CAD 6.4 million, reflecting a lower operating cost base and improved cost structure.

• Store expansion is a key focus, with at least six new stores planned for fiscal 2026 and a goal to double the footprint over three years.

• Early Q4 2025 retail trends are positive, with brick-and-mortar sales up mid-single digits year-over-year in the first five weeks.

Financial highlights

• Gross profit was CAD 5.9 million (47% of sales), down from CAD 7.2 million (51.5%) in Q3 2024.

• Adjusted EBITDA was CAD 0.8 million, down from CAD 1 million in Q3 2024; EBITDA improved to CAD 0.7 million from negative CAD 0.6 million.

• Cash flow used from operations was CAD 0.6 million, compared to cash provided of CAD 2.8 million in Q3 2024.

• Cash position at quarter-end was CAD 8.1 million, with working capital of CAD 10.7 million.

• Fully diluted net loss per share was CAD 0.02, improved from CAD 0.06 loss per share year-over-year.

Outlook and guidance

• Early Q4 indicators are positive, with brick-and-mortar sales up mid-single digits year-over-year.

• Plans to open at least six new stores in fiscal 2026, aiming for 27 stores by end of 2026 and doubling footprint over three years.

• Management remains focused on returning to sustained, profitable growth despite macroeconomic headwinds.