Slide 1: Quarterly Summary Q2 2025
Quarterly Summary Q2 2025 September 10, 2025 PAGE 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain information in this presentation contains forward-looking information. This information is based on management’s reasonable assumptions and beliefs in light of the information currently available to us and are made as of September 10, 2025. Actual results and the t
Slide 3: Our Mission: To Inspire the World to be At Home with Nature
OUR MISSION To Inspire the World to be At Home with Nature PAGE 3
Slide 4: Our Roots
Our Roots Roots was founded in 1973 by Michael Budman and Don Green, who met at summer camp in Algonquin Park, where they first fell in love with the ideals and beauty of Canada. Starting from a little cabin, they were inspired by nature and Canada's wilderness to create Roots. With its uncompromisi
Slide 5: Iconic Canadian Brand with a Global Community
Iconic Canadian Brand with a Global Community 1 Rich heritage of delivering high-quality, versatile and stylish products to customers that span all ages and genders High-Quality, Versatile, Purpose-Driven Products 2 Mix of iconic classics and new pieces that resonate with customers Omni-Channel Stra
Slide 6: Our Values | What Guides Us
Our Values | What Guides Us Community Authenticity Integrity Freedom We are a place of inclusivity, diversity and open- While we draw inspiration from We always strive to do We celebrate the individuality of mindedness. the world around us, we never what’s right and to build style as a form of self-
Slide 7: Q2 2025 Financial Overview
Q2 2025 Financial Overview • Sales of $50.8M, a 6.3% increase compared to $47.7M last year o DTC sales were $41.0M, compared to $36.4M last year o DTC comparable sales growth was +17.8%, the highest comp quarter since the IPO in 2017 • DTC gross margin improved 150bps year-over-year o DTC product ma
Slide 8: Brand & Customer Engagement in Q2
Brand & Customer Engagement in Q2 • Results reflect the execution of our multi-pronged omnichannel strategy, focus on creating compelling product, offering a seamless customer experience, and impactful branding. • Delivered two high-visibility, brand-right collaborations to drive national awareness,
Slide 9: Q2 Product Highlights
Q2 Product Highlights • Roots product continues to be recognized by consumers for its comfort, craftsmanship and premium materials. • Lifestyle, active, and sweats categories all delivered growth this quarter, underscoring the success of our strategic diversification efforts and reinforcing consumer
Slide 10: Q2 Operational Initiatives
Q2 Operational Initiatives • Automated replenishment system continues to enable us to better align our product offering with customer demand. • Continue to integrate advance AI technologies to streamline workflows and focus on reducing time to market. • Continued progress on improvements to our stor
Slide 11: Q2 Sales Summary
Q2 Sales Summary Total Sales DTC Sales P&O Sales $50.8M $47.7M $41.0M $36.4M $11.3M $9.7M Q2-2024 Q2-2025 Q2-2024 Q2-2025 Q2-2024 Q2-2025 • DTC comparable sales grew 17.8%. • Both channels (stores & eCommerce) • Sales decline to our international operating • P&O sales lower to last year, driven by c
Slide 12: Q2 Gross Margin
Q2 Gross Margin Total DTC 63.2% 61.7% 60.7% 56.4% Q2-2024 Q2-2025 Q2-2024 Q2-2025 • 170bps increase from improved DTC product costing and lower • DTC product margin expansion (+) discounting (+) • Greater mix of higher-margin sales within the P&O segment (+) • Partially offset by unfavourable foreig
Slide 13: Q2 SG&A Expenses
Q2 SG&A Expenses $2.3M $0.6M $34.7M $31.8M Q2-2024 Higher Variable Selling Unfavourable Q2-2025 SG&A Costs, Investments in Revaluation of Cash- SG&A Marketing & Personnel Settled DSUs • SG&A expenses increased 7.0% excluding the unfavourable DSU and FX impacts, primarily driven by higher variable co
Slide 14: Drivers of Q2 Profitability Improvement
Drivers of Q2 Profitability Improvement Driven by improvements in sales, gross margin and scaling of operating costs. ($4.4M) ($5.2M) $1.4M ($0.6M) Q2-2024 Year-over-Year scaling Unfavourable Revaluation Q2-2025 Net Loss through sales and costs of Cash-Settled DSUs Net Loss Net loss per share ($0.13
Slide 15: Q2 Adjusted Net Loss and Adjusted EBITDA
Q2 Adjusted Net Loss and Adjusted EBITDA Adjusted Net Loss (1) Adjusted EBITDA(1) ($3.8M) ($2.1M) ($4.6M) ($3.1M) Q2-2024 Q2-2025 Q2-2024 Q2-2025 (9.7%) of sales (7.4%) of sales (6.6%) of sales (4.2%) of sales Adj. Net Loss per Share Adj. Net Loss per Share ($0.11) ($0.09) • Excluding the DSU revalu
Slide 16: Q2 Balance Sheet Highlights
Q2 Balance Sheet Highlights Net Debt(1) $41.3M Total Liquidity ~1.6x $40.8M $38.1M Leverage Ratio (1) $49.9M (13.5% YoY increase) Healthy Inventory Position 492K Common shares Repurchased in Q2, at $1.5M Q2-2024 Q2-2025 NCIB Buyback(2) (1) Net Debt is a non-IFRS measure defined as long-term debt les
Slide 17: Summary
Summary • Continue to execute on our strategic objectives while navigating through the dynamic environment. • Q2 marks our fourth consecutive quarter of growth in sales, gross margin, and Adj. EBITDA. • Balance sheet remains strong with declining net debt and ample liquidity. • Inventory is healthy,
Slide 18: Appendix
Appendix PAGE 18
Slide 19: Non-IFRS Measures and Industry Metrics
Non-IFRS Measures and Industry Metrics This presentation makes reference to certain non-IFRS measures including certain metrics specific to the industry in which we operate. These measures are not recognized measures under International Financial Reporting Standards as issued by the International Ac
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