Delivra Health Brands (DHB) Q2 2025 earnings summary

Executive summary

• Achieved a 34% year-over-year increase in Q2 net sales, driven by strong Dream Water performance in the U.S. and Canada, and expanded marketing investments, though partially offset by lower LivRelief sales in Canada.

• Completed a 10-to-1 stock consolidation to improve trading dynamics and broaden investor accessibility.

• Focused on operational excellence, innovation, and expanding distribution across North America and internationally.

• Increased marketing and promotional investments aimed at expanding brand awareness and customer base.

• Management remains confident in achieving commercial and financial objectives for the fiscal year.

Financial highlights

• Q2 Fiscal 2025 net sales reached CAD 2.8 million ($2,754K), up from CAD 2.1 million ($2,050K) in the same quarter last year; six-month net sales were CAD 5.9 million ($5,917K), up 3% year-over-year.

• Q2 2025 gross profit was $1,294K (margin 47%), up from $1,104K (margin 54%) in Q2 2024; six-month gross profit was $2,891K (margin 49%), down from $3,027K (margin 53%).

• Q2 net loss was CAD 194,000, compared to a net loss of CAD 84,000 in the prior quarter, mainly due to increased marketing spend; Q2 2025 net loss: $(812)K (EPS: $(0.03)); six-month net loss: $(1,288)K (EPS: $(0.04)).

• Adjusted EBITDA for the first half was a loss of CAD 176,000, following positive adjusted EBITDA in 2023 and 2024; Q2 2025 Adjusted EBITDA: $(194)K, down from $(84)K in Q2 2024.

• Q2 2025 expenses (excluding non-cash): $1,544K, up 22% year-over-year; six-month expenses: $3,149K, up 22%.

Outlook and guidance

• Management remains positive about future growth, with plans to balance marketing investments and operational efficiency.

• On track to achieve full-year commercial and financial objectives, supported by ongoing marketing and product initiatives.

• Additional SKUs and innovation programs are planned for the second half of the year.

• Focus on long-term value creation and scalability, despite market and consumer behavior challenges.