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Kits Eyecare (KITS) investor relations material
Kits Eyecare Q4 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Achieved record annual revenue of CAD 202.5 million, up 27% year-over-year, and record Q4 revenue of CAD 53.9 million, up 20% from Q4 2024.
Delivered 13 consecutive quarters of positive adjusted EBITDA, with annual adjusted EBITDA of CAD 11.7 million, up 82.6% year-over-year.
Surpassed 1 million active customers, adding 393,000 new customers in 2025; repeat customers accounted for 66% of Q4 revenue, up from 62% in Q3.
Net income for 2025 was CAD 3.1 million (CAD 0.10 per basic share); Q4 net income was CAD 0.3 million (CAD 0.01 per share).
AI glasses and technology integration, including OpticianAI, are significant growth vectors, with AI glasses AOV over 3x regular glasses.
Financial highlights
Full-year gross profit grew 34% to CAD 72.1 million, with gross margin expanding 190 bps to 35.6%; Q4 gross profit was CAD 18.8 million (35% margin), up 16% year-over-year.
Full-year operating cash flow was CAD 11.5 million, nearly matching adjusted EBITDA, indicating strong cash conversion.
Ended 2025 with CAD 29.8 million in cash and cash equivalents, the strongest liquidity position to date.
Working capital more than doubled to CAD 15.3 million, and the company ended the year with zero long-term debt.
Marketing spend was 16.3% of revenue in Q4, acquiring 88,500 new customers.
Outlook and guidance
Q1 2026 revenue is targeted at CAD 58–60 million, with CAD 10.5 million from glasses and CAD 48 million from contact lenses; gross margin expected at approximately 35%.
Priorities include accelerating glasses and AI glasses growth, strengthening contact lens retention, expanding prescription offerings, and further integrating OpticianAI.
Reaffirmed financial guidance for Q1 2026 and anticipates continued growth with the opening of a second flagship showroom in Toronto.
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