Roots Reports Second Quarter Fiscal 2026 Results & Business Updates
Roots reported Q2 fiscal 2026 sales of $49.5 million CAD, down 2.4% year-over-year, with the net loss widening to $6.0 million ($0.15 per share) from $4.4 million ($0.11) a year earlier. Underlying metrics improved: Adjusted EBITDA loss narrowed 26% to $1.6 million, Adjusted Net Loss improved to $3.2 million, and net debt fell 11.8% year-over-year to $33.6 million with a 1.4x leverage ratio. The quarter absorbed $1.5 million of strategic review costs and $2.0 million of distribution centre transition costs; Roots completed its move to the Metro Supply Chain DC in July 2026, and gross margin fell 240 bps to 58.3% partly on DC occupancy cost reclassification.
Key figures
- Revenue
- 49544000
- Revenue Yoy
- -2.4%
- Currency
- CAD
- Net debt
- 33627000
- Dtc sales
- 40533000
- Inventory
- 57800000
- Ytd sales
- 92111000
- Gross margin
- 58.3%
- Ytd sales yoy
- 1.5%
- Leverage ratio
- 1.4x
- Total liquidity
- 40900000
- Net loss yoy change
- -37.4%
- Dtc comparable sales
- -1.0%
- Inventory yoy change
- 15.8%
- Dc transition costs q2
- 2000000
- Dc transition costs ytd
- 3800000
- Gross margin prior year
- 60.7%
- Acquisition equity value
- 161000000
- Strategic review costs q2
- 1000000
- Strategic review costs ytd
- 1531000
- Acquisition price per share
- 4.1
AI analysis
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