Slide 1: Q4 2025 financial results
Q4 2025 financial results April 29 , 202 6
Slide 2: Cautionary Forward-Looking Statements
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-
Slide 3: Our Vision
Our Vision To become the world’s most innovative tea company, inspiring greater wellness and sustainability.
Slide 4: Business Update
Business Update Business Update Sarah Segal Chief Executive Officer & Chief Brand Officer 4
Slide 5: FY 2025 Results – Fundamental Reset of Business
FY 2025 Results – Fundamental Reset of Business FY 2025 Results – Fundamental Reset of Business › Returned to IFRS profitability with net income reaching $2.9 million › Retail store sales increased 10.4%, comp store sales improved 6.8% › Online sales declined 7.6%, driven by 18.4% drop in U.S. sales
Slide 6: Retail Stores – Growth Engine in FY 2026
Retail Stores – Growth Engine in FY 2026 Retail Stores – Growth Engine in FY 2026 › Four new stores in FY 2026, raising count to 25 • H1: Oshawa (May) & Mississauga (July) • H2: Edmonton (Oct) & Vancouver area (Nov) › Proven store economics • ~750 sq ft | $400–475K capex | $1.2–1.4M annual sales • 2
Slide 7: Financial Review
Financial Review Financial Review Frank Zitella President, Chief Financial and Operating Officer 7
Slide 8: At a Glance – Q4 2025
At a Glance – Q4 2025 At a Glance – Q4 2025 › Sales totaled $23.5 million • Improved 1.2% over prior year › Gross profit reached $13.9 million • Up $1.2 million or 9.2% compared to last year › SG&A as percentage of sales reduced to 36.2% • From 38.3% in prior year › Net income amounted to $5.3 milli
Slide 9: Sales
Sales Quarterly Annual (in millions of CAD$) (in millions of CAD$) 1.2% (1.3)% 23.2 23.5 61.8 61.0 13.7 12.6 11.1 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2024 FY 2025 › Increase in brick-and-mortar sales, partially offset by decrease in online › Decrease in online and wholesale channel sales, par
Slide 10: Comparable Store Sales Growth
Comparable Store Sales Growth Quarterly Annual 10.2% 7.9% 6.6% 6.8% 6.3% 2.9% -1.5% FY 2024 FY 2025 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 10
Slide 11: Quarterly Channel Sales
Quarterly Channel Sales Online Sales Brick-and-Mortar Wholesale (in millions of CAD$) (in millions of CAD$) (in millions of CAD$) (4.7)% 11.9% (7.6)% 12.4 11.8 9.6 8.6 2.5 2.3 2.1 2.1 6.4 5.3 4.9 5.1 5.3 4.6 1.5 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q4 2024
Slide 12: Annual Channel Sales
Annual Channel Sales Online Sales Brick-and-Mortar Wholesale (in millions of CAD$) (in millions of CAD$) (in millions of CAD$) (7.6)% 10.4% (8.4)% 24.3 8.8 31.0 28.6 8.1 22.0 FY 2024 FY 2025 FY 2024 FY 2025 FY 2024 FY 2025 12
Slide 13: Quarterly Geographic Sales
Quarterly Geographic Sales Canada U.S. (in millions of CAD$) (in millions of CAD$) 6.1% (25.2)% 20.8 3.6 19.6 2.7 11.9 11.2 10.0 1.9 1.5 1.2 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 13
Slide 14: Annual Geographic Sales
Annual Geographic Sales Canada U.S. (in millions of CAD$) (in millions of CAD$) 1.5% (18.4)% 53.8 8.8 7.2 53.0 FY 2024 FY 2025 FY 2024 FY 2025 14
Slide 15: Gross Profit and Margin
Gross Profit and Margin Quarterly Annual (in millions of CAD$) (in millions of CAD$) 9.2% 5.1% 35.7 13.9 12.7 8.2 34.0 6.5 7.2 58.6% 55.0% 59.5% 58.7% 56.8% 58.9% 54.6% Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2024 FY 2025 › Higher full-margin product sales, reduced freight and shipping expenses,
Slide 16: SG&A Expenses
SG&A Expenses Quarterly Annual (in millions of CAD$) (in millions of CAD$) (4.4)% (14.2)% 33.6 8.9 8.5 7.0 6.8 6.5 60.9% 28.8 54.3% 51.2% 51.3% 47.2% 38.3% 36.2% Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2024 FY 2025 › Lower marketing expenses, partially offset by higher wages and › Lower IT and ma
Slide 17: Adjusted EBITDA
Adjusted EBITDA1 Quarterly Annual (in millions of CAD$) (in millions of CAD$) $1.4M $3.7M 5.4 7.6 4.0 3.9 1.6 0.8 -0.2 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2024 FY 2025 1 Please refer to the Appendix section of this presentation for a reconciliation of our “Non-IFRS Financial Measures and Rati
Slide 18: Adjusted EBITDAR
Adjusted EBITDAR1 Quarterly Annual (in millions of CAD$) (in millions of CAD$) $1.4M $2.7M 4.2 2.8 2.8 0.4 -0.4 0.1 -1.4 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2024 FY 2025 1 Defined as Adjusted EBITDA less rent equivalent expense. Refer to the Appendix section of this presentation for a reconci
Slide 19: Adjusted Net Income (Loss)
Adjusted Net Income (Loss)1 Quarterly Annual (in millions of CAD$) (in millions of CAD$) 4.0 1.8 2.7 0.2 -0.6 -1.8 0.1 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2024 FY 2025 1 Please refer to the Appendix section of this presentation for a reconciliation of our “Non-IFRS Financial Measures and Rati
Slide 20: Net Income (Loss)
Net Income (Loss) Quarterly Annual (in millions of CAD$) (in millions of CAD$) 5.3 2.9 2.5 -0.2 -0.6 -1.6 -3.2 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2024 FY 2025 20
Slide 21: Liquidity and Cash Position
Liquidity and Cash Position (in millions of CAD$) $0.3M › Cash position improved YoY and sequentially 16.2 16.5 › Cash flow provided from operations totaled $8.3 10.4 million 7.6 8.1 › Working capital reached $17.7 million Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 21
Slide 22: Wrap-Up
Wrap-Up Wrap-Up 1 Returned to IFRS profitability ▪ Net income reached $2.9 million in FY 2025 2 Store-led growth strategy with proven unit economics ▪ Four new stores in 2026, raising count to 25; targeting $1.2–1.4M sales per location at 25% four-wall contribution ▪ Medium-term goal to double Canad
Slide 23: Appendix
Appendix Appendix 23
Slide 24: Non-IFRS Financial Measures and Ratios
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 year ended January 31, Fe bruary 1, January 31, Fe bruary 1, 2026 2025 $ C hange % C hange 2026 2025 $ C hange % C hange Net income (loss) $
Slide 25: Non-IFRS Financial Measures and Ratios
Non-IFRS Financial Measures and Ratios Non-IFRS Financial Measures and Ratios Reconciliation of EBITDA to Adjusted EBITDA For the three-months ended For the year ended January 31, Fe bruary 1, January 31, Fe bruary 1, 2026 2025 $ C hange % C hange 2026 2025 $ C hange % C hange EBITDA(1) $ 5,351 $ 3,
Slide 26: Non-IFRS Financial Measures and Ratios
Non-IFRS Financial Measures and Ratios Non-IFRS Financial Measures and Ratios Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) For the three-months ended For the year ended January 31, Fe bruary 1, January 31, Fe bruary 1, 2026 2025 $ C hange % C hange 2026 2025 $ C hange % C hange
Slide 27: www.davidstea.com
www.davidstea.com www.davidstea.com www.davidstea.com