Diamond Estates Wines & Spirits Inc. Announces Q3 2026 Financial Results

About this update from Diamond Estates Wines & Spirits, Inc.

Niagara-on-the-Lake, Ontario--(Newsfile Corp. - February 25, 2026) - Diamond Estates Wines & Spirits Inc. (TSXV: DWS) ("Diamond Estates" or the "Company") today announced its financial results and position for the three and nine months ended December 31, 2025 ("Q3 2026"). Q3 2026 Summary Closure of Regulatory Compliance Review In Q1 2026, the Company identified an internal practice involving the submission of purchase orders and corresponding invoices to its provincial wholesaler of record under customer names that had not initiated the orders. The matter was voluntarily disclosed, and a Compliance Committee was formed to oversee a comprehensive internal review. Following this process, in December 2025, the matter was resolved to the satisfaction of the provincial wholesaler of record at nominal financial cost to the Company. While the resolution cost was nominal, the Company incurred approximately $0.1 million in legal and audit-related professional fees in Q3 2026 and $0.4 million year-to-date through Q3 2026 in connection with the review process. Management has implemented enhanced internal controls, governance processes, and compliance oversight measures to further strengthen its regulatory framework going forward. President's Message "I am very pleased with the continued improvement in our business, highlighted by strong revenue growth, industry-leading gross margins, increasing share at Ontario retail stores, and innovative marketing initiatives. Additionally, strengthened cash generation has continued to allow us to right size our balance sheet and positions us well for future investment opportunities. The recently completed 2025 harvest was one of the largest in our history. In partnership with our grower community, we took in more than twice the volume of grapes compared to 2024. We also brought in our largest ice-wine harvest in recent years, creating exciting opportunities to further expand our profitable ice-wine sales. Our leadership team is in the final stages of developing our next three-year strategic plan. I am confident in both the choices we are making today and the strong foundation we have built for continued growth and strengthening of our business. The Ontario VQA wine industry is one of the most vibrant wine businesses in the world right now. While some of the recent momentum reflects...

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