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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.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.
Future marketing spend beyond this year?
Partners & Other segment growth drivers post-Taiwan?
Next steps for store optimization strategy?
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Q3 202610 Dec, 2025
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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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