Slide 1: Q1 2026 Financial Results
Q1 2026 Financial Results May 27, 2026
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: Our Vision
Our Vision Our Vision To become the world’s most innovative tea company, inspiring greater wellness and sustainability.
Slide 4: Business Update
Business Update Sarah Segal Chief Executive Officer & Chief Brand Officer 4
Slide 5: Overview – Q1 2026
Overview – Q1 2026 Overview – Q1 2026 › Results demonstrated resiliency of business model • Gross margin held at 59.7% versus 59.5% • Adjusted EBITDA margin grew 100 basis points to 12.5% • Returned to net income › Online sales declined 6.0% due primarily due to U.S. border delays • Actively transit
Slide 6: Retail Stores – Growth Engine in FY 2026
Retail Stores – Growth Engine in FY 2026 ›Four new stores in FY 2026, raising count to 25 › Four new stores in FY 2026, raising count to 25 • H1: Oshawa (June) & Mississauga (July) • H2: Edmonton & Vancouver area › Proven store economics • ~750 sq ft | $400–475K capex | $1.2–1.4M annual sales • 25%
Slide 7: Financial Review
Financial Review Frank Zitella President, Chief Financial and Operating Officer 7
Slide 8: At a Glance – Q1 2026
X At a Glance – Q1 2026 › Sales totaled $13.0 million • Compared to $13.7 million in Q1 2025 › Gross profit reached $7.8 million • 59.7% of sales versus 59.5% last year › SG&A as percentage of sales reduced to 48.2% • From 51.2% in prior year › Net income amounted to $0.1 million • Versus net loss o
Slide 9: Q1 2026 Results – Sales
Q1 2026 Results Sales Comparable Same Store Sales (in millions of CAD$) (5.2%) 10.2% 7.9% 23.5 6.6% 2.9% 13.7 12.6 13.0 11.1 -3.1% Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 › Modest declines in online, wholesale channel, and brick-and- › Modest decrease after fi
Slide 10: Q1 2026 Results – Channel Sales
Q1 2026 Results – Channel Sales Online Sales Brick-and-Mortar Wholesale (in millions of CAD$) (in millions of CAD$) (in millions of CAD$) (6.0%) (1.5%) (12.1%) 11.8 9.6 2.5 2.1 2.1 6.4 6.0 5.3 4.9 5.2 1.8 5.1 5.3 4.6 1.5 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026
Slide 11: Q1 2026 Results – Geographic Sales
Q1 2026 Results – Geographic Sales Canada U.S. (in millions of CAD$) (in millions of CAD$) (1.6%) (27.7%) 20.8 2.7 11.9 11.2 11.7 10.0 1.9 1.5 1.4 1.2 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 11
Slide 12: Q1 2026 Results – Gross Profit and SG&A
Q1 2026 Results Gross Profit and Margin SG&A Expenses (in millions of CAD$) (in millions of CAD$) (4.8%) (10.7%) 13.9 8.5 7.0 6.8 8.2 6.5 6.3 7.2 7.8 6.5 60.9% 59.5% 59.7% 51.2% 51.3% 58.7% 58.9% 48.2% 56.8% 36.2% Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 › Gros
Slide 13: Q1 2026 Results – Net Income
Q1 2026 Results Net Income (Loss) Adjusted Net Income (Loss) 1 (in millions of CAD$) (in millions of CAD$) 5.3 4.0 0.2 0.1 0.1 -0.2 -0.6 -0.6 -1.6 -1.8 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 1 Please refer to the Appendix section of this presentation for a re
Slide 14: Q1 2026 Results – Adjusted EBITDA
Q1 2026 Results Adjusted EBITDA1 Adjusted EBITDAR1,2 (in millions of CAD$) (in millions of CAD$) $0.0M $0.1M 5.4 4.2 1.6 1.6 0.35 0.43 0.8 -0.4 -0.2 -1.4 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 1 Refer to the Appendix section of this presentation for a reconci
Slide 15: Q1 2026 Results – Cash Position
Q1 2026 Results Cash Position (in millions of CAD$) $0.8M › Cash position improved YoY 16.5 › Cash flow used from operations of $2.9 million 11.2 10.4 7.6 8.1 › Working capital reached $18.0 million › Revenue-linked financing balance reduced to $0.4 million Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 15
Slide 16: Wrap-Up
Wrap-Up 1 Demonstrated resiliency of business model Adjusted EBITDA margin expanded 100 basis points, gross margin held at 59.7%, returned to net income 2 Leveraged benefits from leaner and more efficient cost structure 3 Exited quarter with strong cash and liquidity position 4 Chicago fulfillment
Slide 17: Appendix
Appendix Appendix 17
Slide 18: Non-IFRS Financial Measures and Ratios
Non-IFRS Financial Measures and Ratios Reconciliation of Net Income (Loss) to EBITDA For the three-months ended May 2, May 3, 2026 2025 $ C hange % C hange Net income (loss) $ 61 $ (166) $ 227 136.7% Interest on lease liabilities 174 217 (43) (19.8)% Interest on revenue-linked advances 54 — 54 NM Fi
Slide 19: 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 May 2, May 3, 2026 2025 $ C hange % C hange EBITDA(1) $ 1,498 $ 1,138 $ 360 31.6% Adjustments to EBITDA: Stock-based compensation expense (a) 43 76 (33
Slide 20: 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 May 2, May 3, 2026 2025 $ C hange % C hange Net income (loss) $ 61 $ (166) $ 227 136.7% Employee separation costs (b) — 289 (289)
Slide 21: www.davidstea.com
www.davidstea.com