KITS Eyecare Reports Record Second Quarter 2025 Results
Revenue Increased 31.0% Year-Over-Year to a Record $49.6 millionAdjusted EBITDA of 5.2%, Improving Year-Over-Year to $2.6 millionEleventh Consecutive Quarter Reporting Positive Adjusted EBITDA
VANCOUVER, BC, Aug. 5, 2025 /CNW/ - Kits Eyecare Ltd. (TSX:KITS) ("KITS" or the "Company"), a leading vertically integrated eyecare provider, is reporting its results for the second quarter ended June 30, 2025.
Second Quarter 2025 Financial & Operational Highlights
For the second quarter of 2025, compared to the second quarter of 2024:
Revenue increased by 31.0% to a record $49.6 million compared to $37.9 million
Gross profit was $18.0 million, or 36.3% of revenue, compared to $12.4 million or 32.8% of revenue
Adjusted EBITDA improved by $1.3 million to $2.6 million compared to $1.3 million
Record new customers of 111,300, an increase of 54.6% year-over-year
Glasses revenue increased by 44.4% to a record $7.2 million compared to $5.0 million
Year-to-Date 2025 Financial & Operational Highlights
For the six months ended June 30, 2025, compared to the six months ended June 30, 2024:
Revenue increased 32.4% to $96.2 million compared to $72.6 million
Gross profit was $35.1 million or 36.5% of revenue, compared to $23.6 million or 32.5% of revenue
Net income was $0.9 million compared to a net income of $0.3 million
Adjusted EBITDA improved by $4.1 million to $6.0 million compared to $1.9 million
Management Commentary
"KITS continues to prove what's possible when you combine a bold vision for the future of eyecare with operational excellence and financial discipline." said Roger Hardy, Co-Founder and CEO of KITS. "This quarter marks another milestone in our journey - with record revenues of $49.6 million and eleven consecutive quarters of positive Adjusted EBITDA, driven by strong new customer growth and a 44% year-over-year increase in glasses revenues. As we scale, we remain focused on reimagining the eyecare experience by making it faster, more affordable, and more accessible - while creating enduring value for our customers, our team and our shareholders.
Second Quarter 2025 Financial Results
Revenue increased by 31.0% to $49.6 million compared to $37.9 million in the second quarter of 2024. Growing traction across our eyecare offerings drove this performance and positions us well for continued momentum in the second half of 2025.
Gross profit increased by 45.1% to $18.0 million compared to $12.4 million in the second quarter of 2024, while gross margin increased by 350 basis points to 36.3% compared to 32.8% in the second quarter of 2024. This margin expansion reflects continued progress in our initiatives, including refined pricing architecture, an increasing mix of higher value products, and disciplined promotional strategies designed to accelerate customer acquisition while supporting long term purchase behaviour.
Net Loss was $0.7 million, or $(0.02) per share (basic), compared to a net income of $0.2 million, or $0.01 per share (basic), in the second quarter of 2024. Excluding exchange loss, net income was $1.0 million or $0.03 per share. The change in net income was attributed to a $1.7 million of non-operating exchange loss in the quarter. This impact stems primarily from the unrealized exchange loss from the revaluation of intercompany balances and long-term lease obligations.
EBITDA decreased by $0.9 million to $0.2 million compared to $1.1 million in the second quarter of 2024, while Adjusted EBITDA improved by 96% to $2.6 million compared to $1.3 million in the second quarter of 2024. The improvement in Adjusted EBITDA was primarily driven by a steady base of recurring customer orders, helping to provide a reliable stream of long-term earnings and profitability.
On June 30, 2025, cash and cash equivalents totaled $18.1 million compared to $19.3 million on December 31, 2024.
Third Quarter 2025 Outlook
For the third quarter of 2025, KITS management expects revenue to be in the range of $52.0 million to $54.0 million, with Adjusted EBITDA as a percentage of revenue between 5.0% and 7.0%. See "Forward-Looking Statements" below for important disclosure and risk with respect to expectations and forward-looking information.
Conference Call
KITS management will host the conference call followed by a question-and-answer period. To access the call instantly, please click here to register your name and phone number via the rapid connect link.
The conference call will also be webcast live with a presentation and available for replay here and via the investor relations section of the Company's website at ir.kits.com.
Date: Wednesday, August 6, 2025Time: 9:00 a.m. Eastern time (6:00 a.m. Pacific time)Presentation webcast link: https://app.webinar.net/LVy5a6Va4YkRapid connect link: https://emportal.ink/45ivvxK North American toll-free number: 1-888-510-2154Local Toronto dial-in number: 1-437-900-0527Confirmation #: 84266 #
Financial Highlights
The following selected financial information is qualified in its entirety by and should be read conjunction with our consolidated financial statements for the years ended June 30, 2025 and 2024 and accompanying notes and Management's Discussion and Analysis ("MD&A") which may be viewed on SEDAR at www.sedarplus.ca.
Three Months Ended
Six Months Ended
Financial and Operating Data
June 30, 2025
(unaudited)
June 30, 2024
(unaudited)
June 30, 2025
(unaudited)
June 30, 2024
(unaudited)
Revenue...............................................................................................
$
49,580
$
37,852
$
96,175
$
72,634
Net income (loss).................................................................................
$
(694)
$
187
$
909
$
251
Net income (loss) per share..................................................................
Basic.................................................................................................
$
(0.02)
$
0.01
$
0.03
