Kits Eyecare (KITS) Planet MicroCap Showcase: Toronto 2026 summary

Business model and performance

• Launched in 2018 to make online vision care simpler and lower cost; began with contact lenses, then used January 2021 IPO proceeds to build a vertically integrated Vancouver glasses lab.

• Preliminary Q3 revenue was CAD 63.7 million, equivalent to an annualized run rate above CAD 250 million; results were unaudited ahead of earnings the following week.

• Repeat customers contributed over 60% of revenue every quarter and year since launch; adjusted EBITDA was positive for more than 16 consecutive quarters.

• Glasses grew ~59% YoY in preliminary Q3, following ~54% in the prior quarter and ~60% early in the year; glasses were 17%-18% of revenue, up from 13% YoY.

• Contact lenses carry ~30%-35% gross margins versus 50% or higher for glasses; a rising glasses mix is expected to support profitability.

Growth plans and operating model

• By end-2029, internal guidance targets ~CAD 500 million revenue and ~15% adjusted EBITDA, driven largely by glasses mix; this is not formal forecasting.

• Vancouver lab capacity supports ~CAD 500 million revenue without major CapEx; ongoing CapEx plans are below 2% of revenue.

• Glasses retail at CAD 28-CAD 68, with CAD 20 cost of goods sold; vertically integrated production enables same-day shipping into the carrier network.

• Marketing spend, historically 14%-16% of revenue, reached nearly 19% earlier this year to acquire higher-value cohorts; the plan is to return to 14%-16% in coming quarters.

• Pricing has remained stable since glasses launched in 2021; focus is on premium lens options, including anti-fatigue and digital progressives, rather than broad increases to base prices.

Store expansion and capital allocation

• Toronto store opened in July and reached the performance level of the Vancouver store in its fifth year; a few more locations may open in the coming months through 2027.

• Planned store expansion starts in Canada, potentially Alberta and Montreal, with U.S. entry considered after Canadian flagship locations are established.

• Storefronts are positioned mainly as brand-awareness and marketing channels; each can be opened for under CAD 1 million.

• All debt has been repaid; cash on hand was ~CAD 30 million, shares were repurchased through the NCIB last quarter, and capital allocation will remain strategic.