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Roots Corporation (TSE:ROOT)
TSX:ROOT
Earnings Data
Report Date
Apr 02, 2026Before Open (Confirmed)
Period Ending
2025 (Q4)Consensus EPS Forecast
0.41Last Year’s EPS
0.4Same Quarter Last Year
Based on 0 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed solid operational and financial momentum: revenue growth (+6.8%), margin expansion (DTC margin +140 bps), improved adjusted EBITDA and reduced net debt, alongside successful product launches, marketing activations and omnichannel improvements. Headwinds include higher SG&A due to marketing and personnel (+10.6%), a modest decline in reported net income driven by share-based compensation revaluation, inventory buildup (+10.3%), and ongoing market discounting. Management is investing to drive both near-term sales and long-term brand equity, accepting higher marketing spend in the near term. Overall, positive growth and margin trends outweigh the identified challenges, though execution on holiday sales and inventory management will be important going into Q4.Company Guidance
Revenue Growth
Q3 revenue of $71.5 million, a 6.8% increase vs. Q3 2024 ($66.9M). This marks the fifth consecutive quarter of top-line growth.
Direct-to-Consumer Strength and Comparable Sales
Direct-to-consumer (DTC) sales of $56.8 million, up 4.8% vs. $54.2M last year. Comparable store sales grew 6.3% year-over-year and 12.1% on a two-year stack, driven by improved traffic, conversion and new customer acquisition.
Partner and Wholesale Growth
Partners & other sales of $14.6 million, up 15.3% vs. $12.7M last year, supported by earlier orders from the Taiwanese wholesale partner and stronger B2B activity.
Gross Margin Expansion
Total gross margin improved to 60.8%, up 80 basis points year-over-year. DTC gross margin expanded to 65.4%, an improvement of 140 basis points, driven by reduced markdowns, improved product mix and sourcing/ freight improvements.
Profitability and Adjusted EBITDA Improvement
Adjusted EBITDA of $7.5 million, up $0.4M or 5.3% vs. $7.1M a year ago. Excluding DSU revaluation impacts, adjusted EBITDA would have grown ~7.3%–7.4% year-over-year, highlighting underlying operating leverage.
Balance Sheet / Leverage Progress
Net debt reduced to $44.1 million, down 5.9% vs. $46.9M last year. Net leverage approximately 1.9x on trailing 12-month adjusted EBITDA.
Operational and Brand Momentum
Improved style productivity, successful new collections (Roam travel capsule and Cloud line), positive store activations (Vancouver/Toronto openings, University of Toronto presence), and a well-received Seth Rogen campaign driving early holiday engagement.
Working Capital and Cash Flow Trend
Q3 free cash outflow improved to $4.6 million from a $6.0 million outflow a year earlier, reflecting sales growth and working capital management ahead of seasonal peak selling.
TSE:ROOT Earnings History
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:ROOT Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Dec 10, 2025 | C$3.39 | C$3.34 | -1.47% |
Sep 10, 2025 | C$3.17 | C$3.25 | +2.52% |
Apr 09, 2025 | C$2.18 | C$2.29 | +5.05% |
Dec 11, 2024 | C$2.04 | C$2.26 | +10.78% |
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 Roots Corporation (TSE:ROOT) report earnings?
Roots Corporation (TSE:ROOT) is schdueled to report earning on Apr 02, 2026, Before Open (Confirmed).
What is Roots Corporation (TSE:ROOT) earnings time?
Roots Corporation (TSE:ROOT) earnings time is at Apr 02, 2026, Before Open (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:ROOT EPS forecast?
TSE:ROOT EPS forecast for the fiscal quarter 2025 (Q4) is 0.41.
