Groupe Dynamite (GRGD) Q2 2025 earnings summary

Executive summary

• Achieved Q2 2025 revenue of $326.4M, up 36.5% year-over-year, with comparable store sales up 28.6% and a 43% two-year stack; retail sales per square foot rose 18.1% to $820.

• Gross margin reached 63.6%, the highest in four quarters, despite tariff headwinds and a 240 bps contraction.

• Net earnings rose to $63.9M, adjusted EBITDA increased 49.1% to $120.5M (margin 36.9%), and operating income grew 61.4% to $97.3M.

• Free cash flow surged to $72.6M, net leverage improved to 0.79x, and cash on hand exceeded $151M.

• Added to MSCI Canada Small Cap Index, enhancing visibility and share liquidity.

Financial highlights

• Online revenue grew 32.2% to $46.7M; gross profit increased by $49.8M or 31.6% year-over-year.

• Adjusted SG&A rose 12.9% to $87M, but improved as a percentage of sales by 550 bps to 26.7%.

• Trailing 12-month ROA increased to 24.1%, and ROCE to 45%.

• Repurchased 355,300 shares for $7M in Q2, representing 28% of the buyback program.

• LTM Q2-25 revenue was $1.08B, gross profit $671M (62% margin), and adjusted EBITDA $354M (33% margin).

Outlook and guidance

• Raised full-year comparable store sales growth guidance to 17–19% (from 7.5–9%) and adjusted EBITDA margin to 32–33.5% (from 30.3–32.3%).

• Guidance includes 18–20 gross new store openings, 8–9 net new stores, and $95–105M in CAPEX.

• All 145% China tariff costs now reflected in P&L; guidance assumes stable trade conditions and includes $4–5M incremental public company costs.

• Targeting ~350 stores by FY28 and ~25% e-commerce penetration long-term.