Canada's Kits Eyecare Q2 revenue slightly beats on glasses segment growth

Kits Eyecare

05/08/2026 12:26

Overview
Canada eyecare provider's Q2 revenue rose 18% yr/yr, slightly beating analyst expectations
Adjusted EBITDA for Q2 increased yr/yr to C$2.9 mln
Company repurchased and cancelled 89,200 shares for C$1.0 mln under NCIB

Outlook
KITS Eyecare expects Q3 2026 revenue between $62 mln and $64 mln
Company sees Q3 2026 adjusted EBITDA margin between 4.0% and 6.0%
KITS Eyecare plans to sustain glasses growth while maintaining contact lens acquisition momentum

Result Drivers
GLASSES SEGMENT GROWTH - Glasses revenue rose 54% yr/yr to C$11.1 mln, with unit sales up 32% and premium lens upgrades accounting for 45% of glasses revenue
REPEAT CUSTOMER BASE - Repeat revenue grew 27% yr/yr to C$38.3 mln, making up 65.5% of total revenue, supported by growth in the active customer base and subscription program
GROSS MARGIN EXPANSION - Gross margin increased to 37.9%, attributed to a greater mix of glasses sales, more premium lens upgrades, and pricing discipline

Company press release: ID:nCNWXFyLRa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Slight Beat*
C$58.40 mln
C$58.22 mln (5 Analysts)
Q2 EPS
 
C$0.04
 
Q2 Net Income
 
C$1.50 mln
 
Q2 Gross Margin
 
37.90%
 
Q2 Gross Profit
 
C$22.20 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy"
Wall Street's median 12-month price target for Kits Eyecare Ltd is C$22.00, about 60.2% above its August 4 closing price of C$13.73
The stock recently traded at 43 times the next 12-month earnings vs. a P/E of 45 three months ago

Reuters Recommended Reads
Aug 3 - Ocular Therapeutix Q2 product revenue flat, net loss widens on higher spending
Aug 4 - Revolve Q2 sales beat analyst estimates as active customer growth reaches highest rate in nearly 3 years
Aug 5 - CVS Health Q2 revenue beats estimates, outlook raised

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)