DAVIDsTEA (DTEA) investor relations material

Strategy and business model

• Store-led growth plan targets 25 Canadian stores by FY2026-end, with further expansion dependent on market conditions and funding capacity.

• New stores are intended to lift brand awareness and drive spillover sales across online and wholesale channels.

• Typical new store: 750 sq. ft., $1.2–1.4M expected annual sales, $400–475K budgeted CAPEX, 15–18-month payback and 25% four-wall contribution goal.

• U.S. fulfillment platform has operated since March; Canadian operations were consolidated under one roof in July.

• More than 1M social-platform followers and #1 Google front-page results for “loose-leaf tea.”

Products and market

• Portfolio includes ~92% gifts and packaged teas and ~8% loose tea; matcha, teaware and accessories complement the range.

• More than 200 signature blends, single-origin and organic teas, ~30 matcha SKUs, and an in-house R&D pipeline focused on wellness, immunity, sleep, women’s health and energy.

• Specialty tea markets cited at US$38.9B globally and US$11.3B in North America; global market forecast to grow at a 7.8% CAGR through 2034.

• Demand drivers include health-focused beverages and interest in green tea, matcha, herbal wellness teas and flavored black tea; premium pricing is a market constraint.

Financial performance

• FY2025: $61.0M sales, 58.9% gross margin, $7.6M adjusted EBITDA and $2.9M net income; returned to IFRS profitability.

• Q2 FY2026 sales increased 3.3% YoY; brick-and-mortar sales rose 9.6%, comparable same-store sales 4.4% and online sales 1.1%, while wholesale declined 8.8%.

• Q2 FY2026 adjusted EBITDA was $0.7M; presentation cited record-high gross margin and lower unitized freight and inbound shipping costs, alongside internalized fulfillment benefits.

• Q2 FY2026 cash position was $10.2M and improved YoY; the $3M private placement closed in Q4 FY2025 and YTD retail CAPEX was $1.0M.