Kits Eyecare (KITS) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 revenue of CAD 53.9 million, up 20% year-over-year, and full-year revenue of CAD 202.5 million, up 27.1%, with adjusted EBITDA of CAD 11.7 million and 13 consecutive quarters of positive adjusted EBITDA.

• Net income for 2025 was CAD 3.1 million ($0.10 per share); Q4 net income was CAD 0.3 million ($0.01 per share).

• Surpassed 1 million active customers, with 393,000 new customers added in 2025 and 89,000 in Q4.

• Repeat customers accounted for 66% of Q4 revenue, up from 62% in Q3, and five-year customer lifetime value reached CAD 422.

• AI glasses and technology integration, including OpticianAI, are significant growth vectors, with AI glasses AOV over 3x regular glasses.

Financial highlights

• Q4 gross profit was CAD 18.8 million (35% margin), up 16% year-over-year; full-year gross profit grew 34% to CAD 72.1 million, with gross margin expanding 190 bps to 35.6%.

• Q4 adjusted EBITDA was CAD 2.8 million (5.3% margin); full-year adjusted EBITDA margin improved to 5.8%.

• Operating cash flow for 2025 was CAD 11.5 million, with Q4 cash flow from operations at CAD 6.5 million.

• Working capital more than doubled to CAD 15.3 million, and the company ended the year with zero long-term debt and $29.8 million in cash.

• Marketing spend was 16.3% of revenue in Q4, acquiring 88,500–89,000 new customers.

Outlook and guidance

• Q1 2026 revenue is targeted at CAD 58–60 million, with adjusted EBITDA margin expected between 4.0% and 6.0%, and gross margin around 35%.

• Priorities include accelerating glasses and AI glasses growth, strengthening contact lens retention, expanding prescription offerings, and further integrating OpticianAI.

• Anticipates continued growth with the opening of a second flagship showroom in Toronto in Q1 2026.