The call presented strong, broad-based growth across revenue, product mix, and recurring revenue with improving gross margins and sustained profitability and cash generation. Key growth engines—glasses (including AI glasses), contact lenses, KITS Dailies, and retail—show accelerating traction and higher-margin mix. Management acknowledged some near-term margin noise from supplier rebate timing, sequential moderation in new contacts, elevated marketing investment, and the early-stage nature of AI glasses and retail expansion. Overall, the positives — robust top-line growth, margin expansion, recurring revenue strength, product innovation, and strong cash/ balance sheet metrics — materially outweigh the noted risks and modest near-term execution uncertainties.

Company Guidance

Kits guided Q1 FY2026 revenue of $58–$60 million, calling for roughly $10.5 million from glasses and $48 million from contact lenses (implying glasses ≈17–18% and contacts ≈80–83% of the quarter), with gross margins of approximately 35%; near‑term priorities are to accelerate glasses and AI‑glasses growth, strengthen contact‑lens retention, expand Progressive Readers and further integrate OpticianAI across the funnel, while management also plans a Toronto flagship in spring 2026 and the launch of Pangolin Gen‑4 in 2026.

Record Revenue and Strong Top-Line Growth

Q4 revenue increased 20% year-over-year to $53.9 million; full-year 2025 revenue grew 27% to $202.5 million.

Sustained Profitability and Cash Generation

Q4 adjusted EBITDA of $2.8 million (5.3% of revenue); full-year adjusted EBITDA $11.7 million; Q4 operating cash flow $6.4 million and full-year operating cash flow $11.5 million (~98% of adjusted EBITDA). Company delivered its 13th consecutive quarter of positive adjusted EBITDA.

Glasses Business Accelerating with Margin Expansion

Glasses revenue grew 32.7% year-over-year in Q4 (company also cited 36% growth for glasses over the year), glasses units increased 42%, returning glasses revenue grew 42.8%, AOV rose 4%, and glasses gross margin increased to ~45% in Q4 driven by higher-value categories and premium mix.

Contact Lens Recurring Revenue Strength

Contact lenses revenue grew 18% year-over-year in Q4 to $45.2 million; repeat contacts revenue climbed to $30.9 million, up 24% year-over-year; approximately 66% of Q4 total revenue came from repeat customers (up from 62% in Q3); contact lens AOV increased to $229.

KITS Dailies Rapid Traction

KITS Dailies revenue increased 316% year-over-year in Q4, with gross margin of 46.5%, AOV up 10% sequentially, and repeat revenue trending higher.

Retail Momentum and High Productivity Store

Retail revenue grew 46% year-over-year; in-store optical revenue grew 65%, average order value grew 36%, Vancouver store averaged ~300 pairs sold per week and delivered annualized revenue ≈ $1,200 per square foot; Toronto flagship planned for spring 2026.

Product and AI Innovation

Introduced 8 new collections, 48 net new silhouettes and 148 color expressions; ended quarter with >530,000 frames in stock and >16,600 styles. AI glasses: sold out 3 generations, 18 months in-market experience, >75% of AI glasses ordered with Rx, AI AOV is over 3x current glasses AOV, and Gen 4 Pangolin planned for 2026.

Improving Unit Economics and Gross Margin Expansion

Q4 gross profit of $18.8 million (up 16% YoY); full-year gross profit $72.1 million (up 34%) and gross margin expanded 190 basis points to 35.6%. Premium lens upgrades represented ~42.5% of full-year glasses revenue and grew 50.4% YoY.

Balance Sheet and Market Recognition

Working capital increased 142% year-over-year to $15.3 million; company repaid BDC term loan ahead of schedule and carries zero long-term debt. Stock price appreciated >120% in FY2025 with record trading volume and broader analyst coverage.

Kits Eyecare (TSE:KITS) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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TSE:KITS Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
May 13, 2026	2026 (Q1)	0.05 / -	0.05	―	―	―
Nov 06, 2025	2025 (Q3)	0.04 / 0.06	0	―	―	―
Nov 06, 2025	2025 (Q4)	0.04 / 0.03	0.08	-57.50% (-0.05)		―
Aug 05, 2025	2025 (Q2)	0.03 / -0.02	0.01	-300.00% (-0.03)	―	―
May 06, 2025	2025 (Q1)	0.04 / 0.05	0	―	―	―
Mar 05, 2025	2024 (Q4)	0.03 / 0.08	-0.02	500.00% (+0.10)	―	―
Nov 06, 2024	2024 (Q3)	<0.01 / 0.00	0.01	―	―	―
Aug 07, 2024	2024 (Q2)	0.00 / 0.01	-0.04	125.00% (+0.05)	―	―
May 08, 2024	2024 (Q1)	-0.01 / 0.00	-0.03	―	―	―
Mar 06, 2024	2023 (Q4)	-0.01 / -0.02	-0.04	50.00% (+0.02)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

TSE:KITS Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 06, 2025	C$12.61	C$12.93	+2.54%
Nov 06, 2025	C$12.61	C$12.93	+2.54%
Aug 05, 2025	C$16.93	C$16.66	-1.59%
May 06, 2025	C$11.33	C$11.31	-0.18%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

FAQ

When does Kits Eyecare (TSE:KITS) report earnings?

Kits Eyecare (TSE:KITS) is schdueled to report earning on May 13, 2026, After Close (Confirmed).

What is Kits Eyecare (TSE:KITS) earnings time?

Kits Eyecare (TSE:KITS) earnings time is at May 13, 2026, After Close (Confirmed).

Where can I see when companies are reporting earnings?

You can see which companies are reporting today on our designated earnings calendar.

What companies are reporting earnings today?

You can see a list of the companies which are reporting today on TipRanks earnings calendar.

What is TSE:KITS EPS forecast?

TSE:KITS EPS forecast for the fiscal quarter 2026 (Q1) is 0.05.