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EDMONTON, AB, Aug. 28, 2025 /CNW/ - Dr. Phone Fix Canada Corporation (TSXV: DPF.V) ("Dr. Phone Fix" or the "Company") is pleased to announce positive financial results for the three and six months ended June 30, 2025. The Company continues its growth momentum with revenue up 13% from 2024, gross margin sitting at 55%, compared to 51.9% in 2024, and Adjusted EBITDA up 506% from 2024. In addition, Dr. Phone Fix is announcing that it has entered into a new national repair agreement with Likewize Corp. ("Likewize") and an expanded strategic partnership with Assurant, Inc. ("Assurant").
"Q2 showcased healthy top-line growth, margin strength and a return to positive Adjusted EBITDA, while we advanced national partnerships that expand our reach and credibility with insurers and OEM programs," said Piyush Sawhney, Chief Executive Officer of Dr. Phone Fix. "We're focused on disciplined execution, growing same-store sales, scaling our certified pre-owned sector, leveraging partnerships with insurance companies and OEM's to drive durable, profitable growth, and delivering consistent, reliable service that keeps customers in our ecosystem. For the second half of 2025, we expect gross margin to remain strong as procurement scale, CPO mix, and insurer/OEM program volumes increase. Combined with ongoing cost discipline, we also expect Adjusted EBITDA to improve in the second half of 2025."
Mr. Sawhney continued, by stating "looking ahead, our growth playbook combines measured new store openings with a disciplined M&A strategy to accelerate scale. Our strategy is to target high-quality operators in markets where we lack coverage today, prioritizing cultural fit and strong unit economics. Post-acquisitions, we plan to drive additional value through centralized procurement, inventory and refurbishment capabilities, insurance and OEM program access, shared marketing, and our proven operating playbook. Taken together, we believe this approach will expand our footprint efficiently, deepen our national coverage, and enhance cash generation, at the unit level, over time."
SUMMARY OF QUARTERLY RESULTS
The following table sets forth unaudited (2025) and audited (2024) financial information comparing the three and six-month periods ended June 2025 to the three and six-month periods ended June 2024.
Financial Results Summary (CAD)
Three Three Variance Six Six Variance
Months Months (%) Months Months (%)
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2025 2024 2025 2024
($000) ($000) ($000) ($000)
Revenue 2,857 2,525 +13 % 5,054 4,712 +7 %
Gross Profit 1,570 1,310 +20 % 2,781 2,478 +12 %
Gross Margin 55.0 % 51.9 % +3.1 % 55.0 % 52.6 % +2.4 %
Operating
Expenses
(SG&A) 2,376 1,893 +26 % 4,130 3,722 +11 %
Adjusted
EBITDA(1) 280 (69) +506 % 282 (222) +227 %
Cash &
Equivalents 761 346 120 % 761 346 120 %
(1) See "Non-GAAP Financial Measures" towards the end
of this document.
Q2 2025 Financial Highlights
Revenue increased 13% to $2.86 million, compared to $2.53 million in Q2 2024, driven by growth in existing stores.
Gross profit increased 20% to $1.57 million, compared to $1.31 million in Q2 2024, as gross margin expanded to 55.0% from 51.9%, in that same period, on improved purchasing power and supplier partnerships. Gross margins are expected to remain strong in the second half of the year as partnerships and insurer programs scale.
Operating expenses increased 26% to $2.38 million, compared to $1.89 million in Q2 2024, reflecting $0.51 million of non-cash share-based compensation, partly offset by lower salaries and benefits.
Adjusted EBITDA improved by 506% to $0.28 million, compared to a loss of $0.07 million in Q2 2024; reflecting higher gross profit and expense discipline.
Cash ended at $0.76 million as of June 30, 2025, up approximately $0.5 million from June 30, 2024, supported by the Company's March 2025 private placement.
Year-to-Date Financial Highlights
Revenue increased 7% to $5.05 million, compared to $4.71 million in H1 2024, with approximately 6% of the growth contributed from existing stores and 1% from a new store contribution.
Gross profit increased 12% to $2.78 million, compared to $2.48 million in H1 2024, producing a 55.0% gross margin vs. 52.6% last year. These levels are expected to be sustained into the second half as scale benefits continue.
Operating expenses increased 12% to $4.13 million, compared to $3.72 million in H1 2024. Excluding $0.51 million of share-based compensation, operating expenses decreased by approximately 3% year over year.
Adjusted EBITDA improved by 227% to $0.28 million, compared to a loss of $0.22 million in H1 2024, after adding back $1.59 million of non-recurring listing and transaction expenses recognized in Q1 2025.
Q2 2025 Accomplishments
In June 2025, Dr. Phone Fix entered into a national repair agreement with Likewize, enabling insured Canadians to access fast in-store repairs across our network.
Likewize is a corporation founded in 1997 that operates in over 30 countries, that offers insurance, warranty, repair, trade-in, recycling, and tech support to telcos, banks, carriers and retailers on smartphones, tablets, laptops and connected devices in the home.
Subsequent to Quarter-End
In July 2025, Dr. Phone Fix expanded its strategic partnership with Assurant to accelerate certified pre-owned (CPO) device sales nationwide. This deeper integration strengthens Dr. Phone Fix's supply chain, broadens product selection, speeds up inventory turnover, and positions Dr. Phone Fix to capture one of the fastest-growing segments of the device market.
Sustainability leadership: the Company was recognized as Canada's "Sustainable Business of the Year." - an award presented by Google.
Non-GAAP Financial Measures
This press release contains various specified financial measures that are non-GAAP financial measures and do not have standardized meanings as prescribed by International Financial Reporting Standards ("IFRS"). These reported amounts and their underlying calculations are not necessarily comparable or calculated in an identical manner to a similarly titled measure of other companies issuers where similar terminology is used. Readers are cautioned that such financial measures should not be construed as alternatives to or more meaningful than the most directly comparable GAAP IFRS measures with respect to as indicators evaluating of the Company's performance. These measures have been described and presented in this press release in order to provide shareholders and potential investors with additional information regarding the Company's liquidity and its ability to generate funds to finance its operations and should not be considered in isolation.
Adjusted EBITDA is used by management and investors to analyze the Company's profitability based on the Company's principal business activities regardless of how these activities are financed, assets are depreciated and amortized, and results are taxed in various jurisdictions or subject to entity specific tax planning. Below is a reconciliation of net loss to the non-GAAP financial measure of Adjusted EBITDA:
(all dollar amounts Three Months Three Months Six Months Six Months
in 000's) Ended June Ended June Ended June Ended June
30, 2025 30, 2024 30, 2025 30, 2024
Net loss (1,086) (937) (3,497) (1,901)
Add (subtract):
Interest expense 282 357 568 713
Income tax expense
(recovery) 1 1 (2) (9)
Depreciation 523 514 1,046 1,016
Share-based
compensation 510 - 511 -
Listing and
Transaction
expenses 2 - 1,594 -
Fair value
adjustments - (4) - (7)
Government
assistance income - - - (40)
Interest included in
operating income 48 - 62 6
Adjusted EBITDA 280 (69) 282 (222)
Adjusted EBITDA is defined by the Company as a financial measure equal to net income (loss) before finance costs, depreciation and amortization, loss (gain) on property and equipment, impairment, current and deferred income tax provisions and recoveries. Adjusted EBITDA is compared to net income (loss), the closest comparable IFRS measure. To arrive at Adjusted EBITDA, the following items are excluded from net loss as follows:
(1) Interest expense is added back as it is related
to financing decisions;
(2) Income tax expense (recovery) is added back as
it is reflective of taxation jurisdiction or entity-specific
tax planning, not related to core operational performance;
(3) Depreciation and amortization, as they are non-cash
charges and not indicative of operational performance;
(4) Other income (expenses) as follows:
a. Items related to investing decisions;
i. Gain (loss) on disposal of assets;
b. Items that are not related to core operations and
are not indicative of operational performance:
i. Interest income; and
ii. Impairment losses;
(5) Share-based compensation, as it is a non-cash
expense;
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