Slide 1: Q3 2025 Financial Results
Q3 2025 Financial Results December 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—Q3 2025
Overview—Q3 2025 › Both brick-and-mortar and comparable store sales grew 2.9% YoY › Online and wholesale channel sales impacted by softer economic conditions, U.S. tariffs, and end of de minimis exemption › Net loss amounted to $0.6 million on sales of $12.6 million › Early Q4 2025 retail trends rem
Slide 5: Retail Stores – Focal Point of Omnichannel Strategy
Retail Stores – Focal Point of Omnichannel Strategy › Strengthened our presence in Quebec • Completed renovations at flagship store in Montreal’s South Shore • Unveiled new store location at Laurier Quebec Mall in Quebec City › Commitments to open at least six additional stores in 2026 › On track fo
Slide 6: Financial Review
Financial Review Frank Zitella President, Chief Financial and Operating Officer 6
Slide 7: At a Glance – Q3 2025
At a Glance – Q3 2025 › Sales totaled $12.6 million • Compared to $14.0 million in Q3 2024 › Gross profit reached $5.9 million • 47.0% of sales versus 51.5% in same quarter last year › SG&A as percentage of sales reduced to 50.7% • Compared to 62.0% in prior year quarter › Net loss equaled $0.6 mill
Slide 8: Q3 2025 Results – Sales and Comparable Store Sales
Q3 2025 Results Sales Comparable Same Store Sales (in millions of CAD$) (10.2%) 18.1% 23.2 10.2% 7.9% 14.0 13.7 12.6 11.1 2.9% -1.5% Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 › Decrease in online and wholesale channel sales, partially › Comparable store sales gr
Slide 9: Q3 2025 Results – Channel Sales
Q3 2025 Results – Channel Sales Online Sales Brick-and-Mortar Wholesale (in millions of CAD$) (in millions of CAD$) (in millions of CAD$) (16.9%) 2.9% (16.6%) 12.4 8.6 3.0 2.5 5.3 2.3 4.7 4.9 2.1 6.4 6.4 4.6 5.1 5.3 1.5 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025
Slide 10: Q3 2025 Results – Geographic Sales
Q3 2025 Results – Geographic Sales Canada U.S. (in millions of CAD$) (in millions of CAD$) (7.1%) (28.3%) 19.6 3.6 12.0 11.9 11.2 2.0 10.0 1.9 1.5 1.2 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 10
Slide 11: Q3 2025 Results – Gross Profit and SG&A
Q3 2025 Results Gross Profit and Margin SG&A Expenses (in millions of CAD$) (in millions of CAD$) (17.9%) (26.5%) 11.2 8.7 8.6 6.9 6.7 6.4 7.2 6.9 5.9 5.3 62.0% 59.8% 51.5% 50.3% 50.5% 50.7% 48.4% 47.2% 47.0% 37.1% Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 › Low
Slide 12: Q3 2025 Results – Net Income (Loss)
Q3 2025 Results Net Income (Loss) Adjusted Net Income (Loss) 1 (in millions of CAD$) (in millions of CAD$) 2.5 2.7 0.0 0.2 -0.2 -0.6 -0.6 -1.6 -1.6 -1.8 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 1 Please refer to the Appendix section of this presentation for a r
Slide 13: Q3 2025 Results – Adjusted EBITDA
Q3 2025 Results Adjusted EBITDA1 Adjusted EBITDA1 (after rent equivalent expense) (in millions of CAD$) (in millions of CAD$) ($0.2)M ($0.4)M 2.8 4.0 0.4 1.6 1.0 0.8 0.0 -0.4 -1.4 -0.2 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 1 Please refer to the Appendix sect
Slide 14: Q3 2025 Results – Cash Position
Q3 2025 Results Cash Position (in millions of CAD$) $0.2M › Cash position improved YoY and sequentially 16.2 › Cash flow used from operations of $0.6 million 10.4 7.9 7.6 8.1 › Private placement of $3.0 million (closed post quarter end) and revenue-linked financing of $2.7 million strengthen balance
Slide 15: Wrap-Up
Wrap-Up 1 Retail store momentum continued Brick-and-mortar sales up mid-single digits in first five weeks of Q4 2 Store expansion central to omnichannel strategy To open six new stores in 2026 3 Cost structure aligns with revenue levels Reflected by reduced SG&A expenses in quarter 4 Strengthe
Slide 16: Appendix
Appendix 16
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 nine-months ended November 1, November 2, November 1, November 2, 2025 2024 $ Change % Change 2025 2024 $ Change % Change Net loss $ (641) $ (1,575) $ 934 59.3% $ (2,369) $ (5,709)
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 nine-months ended November 1, November 2, November 1, November 2, 2025 2024 $ Change % Change 2025 2024 $ Change % Change Adjusted EBITDA (1)
Slide 19: www.davidstea.com
www.davidstea.com