Slide 1: Q2 2025 Financial Results
Q2 2025 Financial Results September 16, 2025
Slide 2: Cautionary Forward-Looking Statements
Cautionary Forward-Looking Statements This presentation includes statements that express our opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results and there are, or may be deemed to be, “forward-looking statements” in this presentati
Slide 3: Business Update
Business Update Sarah Segal Chief Executive Officer & Chief Brand Officer 3
Slide 4: Overview—Q2 2025
Overview—Q2 2025 › Retail store and wholesale channel sales grew 9.1% and 2.5% YoY › Net loss amounted to $1.6 million on sales of $11.1 million › Online sales continued to lag (-6.7% YoY) in quarter • Ad spend intensified across digital and physical media ahead of strong selling season • Typically,
Slide 5: Retail Stores—Focal Point of Omnichannel Strategy
Retail Stores—Focal Point of Omnichannel Strategy › Opening three stores over next 12 months • Renovations underway at flagship store in Montreal’s South Shore, reopening mid-November • Signed second lease for store at Laurier Quebec Mall • Unveiling new concept store at Square One Mall in Mississau
Slide 6: Financial Review
Financial Review Frank Zitella President, Chief Financial and Operating Officer 6
Slide 7: At a Glance – Q2 2025
At a Glance – Q2 2025 › Sales totaled $11.1 million • Up $0.1 million, or 0.5%, from Q2 2024 › Gross profit stable at $5.3 million • 47.2% of sales versus 47.3% in same quarter last year › Net loss amounted to $1.6 million • Compared to net loss of $1.5 million in prior year quarter › Adj. EBITDA st
Slide 8: Q2 2025 Results
Q2 2025 Results Sales Comparable Same Store Sales (in millions of CAD$) 0.5% 19.8% 19.3% 23.2 7.5% 14.0 13.7 11.1 11.1 0.6% -4.7% Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 › Increase in brick-and-mortar and wholesale channel › Comparable store sales grew 0.6% ye
Slide 9: Q2 2025 Results – Channel Sales
Q2 2025 Results – Channel Sales Online Sales Brick-and-Mortar Wholesale (in millions of CAD$) (in millions of CAD$) (in millions of CAD$) (6.7%) 9.1% 2.5% 12.4 8.6 3.0 2.3 2.1 5.3 6.4 6.4 4.2 4.7 4.6 5.5 1.4 1.5 5.1 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q2 2
Slide 10: Q2 2025 Results – Geographic Sales
Q2 2025 Results – Geographic Sales Canada U.S. (in millions of CAD$) (in millions of CAD$) 3.7% (20.6%) 19.6 3.6 12.0 11.9 2.0 9.6 10.0 1.9 1.5 1.2 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 10
Slide 11: Q2 2025 Results
Q2 2025 Results Gross Profit and Margin SG&A Expenses (in millions of CAD$) (in millions of CAD$) (0.1%) N.M1 11.2 8.7 8.6 6.7 6.9 6.7 7.2 6.9 5.3 5.3 62.0% 60.5% 59.8% 51.5% 50.3% 50.5% 47.3% 48.4% 47.2% 37.1% Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 › Lower p
Slide 12: Q2 2025 Results
Q2 2025 Results Net Income (Loss) Adjusted Net Income (Loss) 1 (in millions of CAD$) (in millions of CAD$) 2.5 2.7 0.0 0.2 -0.2 -1.0 -1.5 -1.6 -1.6 -1.8 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 › Net loss totaled $1.6 million compared to net loss of $1.5 millio
Slide 13: Q2 2025 Results
Q2 2025 Results Adjusted EBITDA1 Adjusted EBITDA1 (after rent equivalent expense) (in millions of CAD$) (in millions of CAD$) $0.1M ($0.3)M 2.8 4.0 0.4 1.6 1.0 0.0 -1.1 -1.4 -0.3 -0.2 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 1 Please refer to the Appendix secti
Slide 14: Q2 2025 Results
Q2 2025 Results Cash Position (in millions of CAD$) $0.9M › Cash position improved from Q2 2024, but declined 16.2 sequentially due to typical seasonality 10.4 › Cash flow used from operations of $1.5 million 7.9 7.6 6.7 › No balance sheet debt Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 14
Slide 15: Wrap-Up
Wrap-Up 1 Stayed the course with omnichannel growth strategy ▪ Reported solid results in seasonally soft quarter 2 Achieved critical operational milestones ▪ To open three new stores over next 12 months 3 Increased marketing to be top-of-mind with consumers ▪ Preparing for revenue-intensive third an
Slide 16: Appendix
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Slide 17: Non-IFRS Financial Measures and Ratios
Non-IFRS Financial Measures and Ratios Reconciliation of Net Income (Loss) to EBITDA For the three-months ended For the six-months ended August 2, August 3, August 2, August 3, 2025 2024 $ Change % Change 2025 2024 $ Change % Change Net loss $ (1,562) $ (1,487) $ (75) (5.0)% $ (1,728) $ (4,136) $ 2,
Slide 18: Non-IFRS Financial Measures and Ratios
Non-IFRS Financial Measures and Ratios Reconciliation of Adjusted EBITDA to Adjusted EBITDA (after rent equivalent expense) For the three-months ended For the six-months ended August 2, August 3, August 2, August 3, 2025 2024 $ Change % Change 2025 2024 $ Change % Change Adjusted EBITDA (1) $ (211)
Slide 19: www.davidstea.com
www.davidstea.com