The earnings call highlighted significant growth in sales, gross margin expansion, and successful strategic initiatives, despite challenges in the Partner and Other sales segment and increased inventory and cash outflows. The positive aspects significantly outweigh the negative, indicating a strong performance and a positive outlook.

Company Guidance

During the first quarter of fiscal 2025, Roots demonstrated robust financial performance, with sales increasing by 6.7% year-over-year to $40 million, driven primarily by a 14.1% growth in the direct-to-consumer (DTC) segment. The company's gross margin expanded by 80 basis points, while adjusted EBITDA losses improved by 16.8%, excluding the deferred share unit (DSU) revaluation. Net debt decreased by 6.7%, and inventory balance saw a 14.5% increase, positioning the company well for future growth. Roots also focused heavily on strategic initiatives, including a new multipronged marketing strategy and enhanced retail optimization efforts. The company maintained a healthy balance sheet with a net leverage ratio of approximately 1.3x, reflecting strong financial health and a commitment to operational excellence.

Sales Growth and Direct-to-Consumer Success

Q1 2025 sales totaled $40 million, a 6.7% increase from $37.5 million in Q1 2024. Direct-to-consumer sales reported a 14.1% comparable sales growth, driven by improved customer engagement and omnichannel capabilities.

Gross Margin Expansion

Gross margin expanded by 80 basis points, with a total gross profit of $24.6 million, up 11.2% from the previous year. This was due to improved product costs and reduced discounting.

Reduction in Adjusted EBITDA Losses

Adjusted EBITDA losses reduced by 16.8% year-over-year, excluding the DSU revaluation.

Successful Strategic Initiatives

Roots launched a new marketing strategy, a partnership with NCAA player Toby Fournier, and expanded its brand ambassador program, exceeding engagement expectations.

Increased Profitability in Partner and Other Segments

Despite a decline in sales, profitability in the Partner and Other segments improved by 7.8% year-over-year.

Share Repurchase Program

Repurchased 115,000 shares for total consideration of $0.3 million under the normal course issuer bid.

Roots Corporation (TSE:ROOT) 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

Daily Earnings Calendar >

TSE:ROOT Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Sep 10, 2025	2025 (Q2)	-0.10 / -	-0.13	―	―	―
May 03, 2025	2025 (Q1)	-0.19 / -0.20	-0.22	9.09% (+0.02)	―	―
Apr 09, 2025	2024 (Q4)	0.39 / 0.40	0.36	11.11% (+0.04)	―	―
Dec 11, 2024	2024 (Q3)	0.05 / 0.06	0.01	500.00% (+0.05)	―	―
Sep 13, 2024	2024 (Q2)	-0.14 / -0.13	-0.13	0.00% (0.00)	―	―
Jun 10, 2024	2024 (Q1)	-0.21 / -0.22	-0.19	-15.79% (-0.03)	―	―
Apr 10, 2024	2023 (Q4)	0.30 / 0.36	0.31	16.13% (+0.05)	―	―
Dec 06, 2023	2023 (Q3)	0.02 / 0.01	0.05	-80.00% (-0.04)	―	―
Sep 12, 2023	2023 (Q2)	-0.07 / -0.13	-0.08	-62.50% (-0.05)	―	―
Jun 08, 2023	2023 (Q1)	-0.16 / -0.19	-0.13	-46.15% (-0.06)	―	―

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
Apr 09, 2025	C$2.18	C$2.29	+5.05%
Dec 11, 2024	C$2.04	C$2.26	+10.78%
Sep 13, 2024	C$2.18	C$2.15	-1.38%
Jun 10, 2024	C$2.20	C$2.13	-3.18%

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 Roots Corporation (TSE:ROOT) report earnings?

Roots Corporation (TSE:ROOT) is schdueled to report earning on Sep 10, 2025, Before Open (Confirmed).

What is Roots Corporation (TSE:ROOT) earnings time?

Roots Corporation (TSE:ROOT) earnings time is at Sep 10, 2025, 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 (Q2) is -0.1.

Roots Corporation (TSE:ROOT) Earnings News

Roots Stock (TSE:ROOT) is Plunging Today. Here’s Why

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Roots Stock (TSE:ROOT) is Plunging Today. Here’s Why

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