Kits Eyecare Ltd. Q1 2025 Earnings Call Transcript: Roger Hardy, Joseph Thompson, and Zhe Choo Discuss Financial Results and Future Outlook.

Kits Eyecare Ltd. (KTYCF) reported Q1 2025 earnings, with Roger Hardy, Joseph Thompson, and Zhe Choo participating in the conference call. The call was hosted by Beacon Securities Limited, Canaccord Genuity Corp., ROTH Capital Partners, Stifel Nicolaus Canada Inc., Cormark Securities Inc., and Haywood Securities Inc. The company's financial results and forward-looking statements were discussed, with management cautioning investors not to rely on the latter due to potential material differences from actual results.

Kits Eyecare Ltd. (KTYCF) reported robust financial performance for Q1 2025, with revenue growing by 34% year-over-year to $46.6 million. The company's adjusted EBITDA margin reached 7.4%, the highest to date, reflecting strong operational efficiency. Gross profit surged by 53%, driven by a 460 basis point increase in gross margin to 36.7%.

The company welcomed over 95,000 new customers, a 28% increase from the previous year, with 62% of total revenue coming from returning customers. The Kits Autoship program contributed nearly $6 million in revenue, up 11% year-over-year. Glasses units delivered increased by 39% to 104,000 pairs.

Marketing expenses rose to 13.5% of revenue, up from 13% last year, signaling continued investment in customer acquisition. However, general and administrative expenses decreased to 6.3% of revenue, down from 6.9% the previous year.

Kits Eyecare's stock price rose by 1.5% in after-hours trading following the earnings release, reflecting positive investor sentiment. The company's EPS of $0.05 exceeded the projected $0.0359, marking a 39.3% surprise.

Management expects Q2 2025 revenue between $48 million and $50 million, with an adjusted EBITDA margin of 3-5%. The company continues to invest in customer acquisition and aims for a long-term EBITDA margin target of 15-20%.

Reference List:
[1] https://finance.yahoo.com/news/kits-eyecare-ltd-ktycf-q1-071650917.html
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-kits-eyecare-q1-2025-beats-eps-expectations-93CH-4029095