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Roots (ROOT) investor relations material

Roots Q2 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2026 earnings summary10 Sep, 2025

Executive summary

  • Q2 2025 sales reached $50.8 million, up 6.3% year over year, with direct-to-consumer comparable sales up 17.8%, the highest since IPO, and marking the fourth consecutive quarter of growth in sales, gross margin, and adjusted EBITDA.

  • Growth was driven by omnichannel strategy, product innovation, and high-profile brand collaborations, with strong brand momentum and customer engagement.

  • Lifestyle, active, and sweats categories all grew, supported by the launch of the Rome/Roam Collection and major collaborations.

  • Brand ambassador program doubled in size, and new flagship stores in Vancouver and Mount Tremblant contributed to sales momentum and enhanced customer engagement.

  • Positive trends continued into the first five weeks of Q3, including the back-to-school period.

Financial highlights

  • Total sales increased to $50.8 million from $47.7 million in Q2 2024, a 6.3% rise; DTC sales grew to $41.0 million, up 12.7% year over year.

  • Gross profit rose 14.5% to $30.8 million, with gross margin expanding 430 basis points to 60.7%.

  • Net loss improved 16.1% to $4.4 million, and adjusted EBITDA loss improved 32% to $2.1 million.

  • Net loss per share improved to $(0.11) from $(0.13) year over year; adjusted net loss per share improved to $(0.09) from $(0.11).

  • Free cash outflow was $6.9 million, improving from $9 million last year; net debt reduced 6.5% to $38.1 million.

Outlook and guidance

  • Positive sales trends continued into early Q3, including the back-to-school period.

  • Inventory levels and liquidity are strong, positioning the company well for the fall/holiday season.

  • Elevated marketing investments will continue through the rest of the year to drive brand awareness and sales.

  • Focus remains on executing strategic initiatives, driving operating leverage, and sustainable, profitable growth.

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Frequently asked questions

Roots Corporation, provides apparel, leather goods, footwear, and accessories under the Roots brand. The company offers casual apparel and active wear that includes sweaters, shirts, t-shirts, jackets, denim jeans, shorts and loungewear. It also provides workwear items comprising coveralls, work shirts, pants and cowgirl boots as well as boots for men and women; runs & riding boots for men and women; backpacks; duffel bags; briefcases; tote bags; card holders; wallets for men and women; belts for men and women; travel accessories comprising passport cases, notebook covers and toiletry kits for men and women. Roots Corporation is based in Toronto, Canada.

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