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Roots (ROOT) investor relations material
Roots Q2 2027 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Entered into an agreement to be acquired by Marquee Brands for $4.10 per share, valuing equity at $161 million; transaction expected to close in Q4 2026.
Completed transition to a new third-party distribution centre, incurring significant one-time costs.
Q2 2026 sales declined 2.4% year-over-year to $49.5 million, with DTC sales down 1.3% and P&O sales down 7.3%.
Adjusted EBITDA improved 26.2% year-over-year to $(1.6) million; net loss widened to $(6.0) million.
Financial highlights
Gross margin decreased to 58.3% from 60.7% in Q2 2025; DTC gross margin fell to 60.6% from 63.2%.
Excluding DC costs, DTC gross margin rose to 67.2% from 66.4%.
Adjusted Net Loss was $(3.2) million, an improvement from $(3.8) million last year.
Free cash flow was $(10.1) million, down from $(6.9) million in Q2 2025.
Net debt reduced 11.8% year-over-year to $33.6 million.
Outlook and guidance
Management expects improved operational efficiency and scalability following the DC transition.
Positioned to better serve customers in the larger second half of the year.
- Directors were re-elected and auditors reappointed, with strong shareholder support.ROOT
AGM 2026 - Q1 2026 sales rose 6.5% year-over-year, but net loss widened due to strategic initiative costs.ROOT
Q1 2027 - Record gross margins, strong DTC growth, and net debt reduction marked fiscal 2025.ROOT
Q4 2026 - All director nominees were elected and the Omnibus Equity Incentive Plan amendment was approved.ROOT
AGM 2025 - All director nominees re-elected and auditors reappointed with strong shareholder support.ROOT
AGM 2024 - Q3 sales, margins, and EBITDA rose, net debt fell, and strong holiday momentum continued.ROOT
Q3 2025 - Sales up 6.7% to CAD 40M, with DTC growth, margin gains, and improved profitability.ROOT
Q1 2026 - Sales fell 9.7% YoY, but margin, cash flow, and debt improved amid inventory challenges.ROOT
Q1 2025 - Q4 2024 delivered strong DTC growth, margin gains, and a share buyback, with net debt at record lows.ROOT
Q4 2025
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