Delivra Health Brands (DHB) Q3 2026 earnings summary

Executive summary

• Third quarter and year-to-date sales were negatively impacted by geopolitical conflict in the Middle East, particularly the closure of the Strait of Hormuz, which disrupted outbound shipments from the USA to Middle East partners.

• E-commerce sales for Dream Water Canada grew 16% in Q3 and 13% year-to-date, while LivRelief M E-commerce rose 60% in Q3 and 32% year-to-date, offsetting declines in retail channels.

• Management is focused on stabilizing distribution, advancing innovation projects, and restoring sales to pre-conflict levels in fiscal 2027.

Financial highlights

• Nine-month net revenue was $6,887K, down 24% from $9,012K year-over-year, mainly due to reduced Dream Water sales in the US and lower LivRelief OTC and Infused product sales.

• Gross profit for nine months was $2,784K (margin 40%), down from $4,444K (margin 49%) year-over-year, reflecting lower revenue and higher product costs.

• Adjusted EBITDA for nine months was $(1,262)K, compared to $(51)K last year, driven by lower sales and gross profit.

• Q3 net revenue was $1,247K, down 60% from $3,095K year-over-year, with gross profit of $311K (margin 25%) versus $1,552K (margin 50%) last year.

• Q3 Adjusted EBITDA was $(949)K, compared to $124K in the prior year.

Outlook and guidance

• Shipping and delivery to the Middle East are expected to resume in Q4 and fiscal 2027, with new order commitments anticipated to restore sales.

• Management plans to continue investing in e-commerce, stabilize LivRelief Infused business, and advance innovation projects to drive growth in fiscal 2027.