Slide 1: Q2 2026 Financial Results
Q2 2026 Financial Results September 22, 2026
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 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: Overview – Q2 2026
Overview– Q1 2026 Overview – Q2 2026 Overview – Q2 2026 › Results demonstrated resiliency of business model • Consolidated growth of 3.3% • Retail store growth of 9.6% • Comparable-store sales growth of 4.4% • Record high gross margin at 61.9% › 2 new locations in the Greater Toronto Area › Consolid
Slide 6: Retail Stores – Growth Engine in FY 2026
Retail Stores – Growth Engine in FY 2026 Retail Stores – Growth Engine in FY 2026 ›Fournewstores inFY 2026, raising countto25 › On track to have 25 locations in 2026 • H2: Edmonton & Vancouver area › Proven store economics • Solid performance of recent new locations and 15–18 month payback › Signifi
Slide 7: Financial Review
Financial Review Financial Review Frank Zitella President, Chief Financial and Operating Officer 7
Slide 8: At a Glance – Q2 2026
At a Glance – Q2 2026 At a Glance – Q2 2026 › Sales totaled $11.5 million • Compared to $11.1 million in Q2 2025 › Gross profit reached $7.1 million • 61.9% of sales versus 58.7% last year › SG&A as percentage of sales reduced to 59.8% • From 60.9% in prior year › Net loss narrowed to $1.2 million •
Slide 9: Q2 2026 Results – Sales and Comparable Store Sales
Q2 2026 Results Sales Comparable Same Store Sales (in millions of CAD$) 3.3% 15.8% 4.4% 23.5 -2.9% 13.0 0.6% 12.6 11.5 11.1 -4.7% Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 › Strong brick-and-mortar sales; modest growth in online; › Strong rebound from Q1 2026 wh
Slide 10: Q2 2026 Results – Channel Sales
Q2 2026 Results – Channel Sales Online Sales Brick-and-Mortar Wholesale (in millions of CAD$) (in millions of CAD$) (in millions of CAD$) 1.1% 9.6% (8.8%) 11.8 9.6 2.5 2.1 6.0 4.9 5.2 5.0 1.8 5.1 5.3 5.2 4.6 1.5 1.3 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q2 2
Slide 11: Q2 2026 Results – Geographic Sales
Q2 2026 Results – Geographic Sales Canada U.S. (in millions of CAD$) (in millions of CAD$) 5.5% (15.2%) 20.8 2.7 11.2 11.7 10.0 10.5 1.5 1.4 1.2 1.0 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 11
Slide 12: Q2 2026 Results – Gross Profit and SG&A
Q2 2026 Results Gross Profit and Margin SG&A Expenses (in millions of CAD$) (in millions of CAD$) 9.0% 1.5% 13.9 8.5 6.8 6.5 6.9 7.8 6.3 6.5 7.2 7.1 60.9% 59.8% 61.9% 51.3% 58.7% 58.9% 59.7% 48.2% 56.8% 36.2% Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 › Record hi
Slide 13: Q2 2026 Results – Net Income (Loss)
Q2 2026 Results Net Income (Loss) Adjusted Net Income (Loss) 1 (in millions of CAD$) (in millions of CAD$) 5.3 4.0 0.1 0.1 -0.6 -0.6 -1.0 -1.6 -1.2 -1.8 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 1 Please refer to the Appendix section of this presentation for a r
Slide 14: Q2 2026 Results – Adjusted EBITDA and EBITDAR
Q2 2026 Results Adjusted EBITDA1 Adjusted EBITDAR1,2 (in millions of CAD$) (in millions of CAD$) ($0.7M) $0.7M 4.2 5.4 0.43 1.6 0.8 0.5 -0.4 -0.7 -0.2 -1.4 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 1 Refer to the Appendix section of this presentation for a recon
Slide 15: Q2 2026 Results – Cash Position
Q2 2026 Results Cash Position (in millions of CAD$) $2.6M › Cash position improved YoY 16.5 › Decline from Q4 2025 consistent with historical 11.2 seasonal patterns of the business 10.2 7.6 8.1 › $3 million private placement completed in Q4 2025 › YTD retail capital expenditure of $1.0 million Q2 20
Slide 16: Wrap-Up
Wrap-Up Wrap-Up 1 Demonstrated resiliency of business model Adjusted EBITDA improved by $0.7 million 2 Leveraged benefits from leaner and more efficient cost structure 3 Exited quarter with strong cash and liquidity position 4 Consolidation of operating footprint in Montreal Benefits starting in
Slide 17: Appendix
Appendix Appendix Appendix 17
Slide 18: Non-IFRS Financial Measures and Ratios
Non-IFRS Financial Measures and Ratios Non-IFRS Financial Measures and Ratios Reconciliation of Net Loss to EBITDA For the three-months ended For the six-months ended August 1, August 2, August 1, August 2, 2026 2025 $ Change % Change 2026 2025 $ Change % Change Net loss $ (1,222) $ (1,562) $ 340 21
Slide 19: Non-IFRS Financial Measures and Ratios
Non-IFRS Financial Measures and Ratios Non-IFRS Financial Measures andRatios Non-IFRS Financial Measures and Ratios Reconciliation of EBITDA to Adjusted EBITDA For the three-months ended For the six-months ended August 1, August 2, August 1, August 2, 2026 2025 $ Change % Change 2026 2025 $ Change %
Slide 20: Non-IFRS Financial Measures and Ratios
Non-IFRS Financial Measures and Ratios Non-IFRS Financial Measures andRatios Non-IFRS Financial Measures and Ratios Reconciliation of Loss to Adjusted Net Loss For the three-months ended For the year ended August 1, August 2, August 1, August 2, 2026 2025 $ Change % Change 2026 2025 $ Change % Chang
Slide 21: www.davidstea.com
www.davidstea.com www.davidstea.com