Kits Eyecare (TSE:KITS) Issues Earnings Results

Kits Eyecare (TSE:KITSGet Free Report) issued its earnings results on Wednesday. The company reported C$0.04 earnings per share for the quarter, FiscalAI reports. The company had revenue of C$58.43 million during the quarter.

Here are the key takeaways from Kits Eyecare’s conference call:

  • Q2 revenue rose 17.8% year over year to CAD 58.4 million, while net income improved to CAD 1.5 million from a prior-year loss and operating cash flow reached a record CAD 7.8 million.
  • The glasses business continued to accelerate, with revenue up 54%, delivered pairs up 32.4%, and premium lens upgrades reaching 45.2% of glasses revenue. Management said stronger first-order values, cross-selling, and repeat purchases are producing increasingly attractive customer cohorts.
  • Kits ended the quarter with CAD 27.4 million in cash, no debt, and approximately CAD 42.4 million of accessible liquidity, while repurchasing CAD 1 million of shares. Gross margin expanded 160 basis points to 37.9%, and the company maintained its 15th consecutive quarter of positive Adjusted EBITDA.
  • Management plans to rebalance marketing in the second half, maintaining glasses momentum while directing more acquisition spending toward contact lenses. Q3 guidance calls for revenue of CAD 62 million-CAD 64 million and an Adjusted EBITDA margin of 4%-6%, with near-term profitability potentially constrained by customer-acquisition investment and fulfillment costs.
  • The Toronto flagship store launched near the end of Q2 and reportedly exceeded early expectations, with management citing stronger brand searches and a digital “halo” effect. Kits is considering a thoughtful expansion that could include approximately two additional locations in the second half of 2026.

Kits Eyecare Stock Performance

KITS stock traded up C$0.95 on Wednesday, hitting C$14.68. 140,913 shares of the company’s stock traded hands, compared to its average volume of 118,108. Kits Eyecare has a 1-year low of C$10.61 and a 1-year high of C$22.56. The firm has a market cap of C$499.05 million, a PE ratio of 146.80 and a beta of 0.06. The stock’s fifty day moving average is C$13.54.

Analyst Ratings Changes

KITS has been the topic of a number of analyst reports. Desjardins dropped their price objective on shares of Kits Eyecare from C$25.00 to C$23.00 and set a “buy” rating on the stock in a report on Thursday, May 7th. Stifel Nicolaus dropped their price target on shares of Kits Eyecare from C$24.00 to C$21.00 and set a “buy” rating on the stock in a research note on Thursday, May 7th. ATB Cormark Capital Markets cut their price target on Kits Eyecare from C$20.00 to C$16.75 and set a “speculative buy” rating on the stock in a report on Thursday, May 7th. Finally, Canaccord Genuity Group decreased their price objective on Kits Eyecare from C$23.00 to C$22.00 and set a “buy” rating for the company in a report on Thursday, May 7th. Four research analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, Kits Eyecare currently has an average rating of “Buy” and a consensus target price of C$20.69.

View Our Latest Research Report on Kits Eyecare

Insider Activity at Kits Eyecare

In other news, insider Joseph Thompson sold 75,000 shares of the stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of C$13.65, for a total transaction of C$1,023,750.00. Following the completion of the sale, the insider owned 960,114 shares in the company, valued at approximately C$13,105,556.10. This represents a 7.25% decrease in their position. Also, Director Roger Hardy acquired 25,000 shares of the business’s stock in a transaction dated Thursday, May 7th. The shares were bought at an average price of C$11.37 per share, with a total value of C$284,250.00. Following the transaction, the director directly owned 4,093,727 shares in the company, valued at approximately C$46,545,675.99. The trade was a 0.61% increase in their position.

Kits Eyecare Company Profile

(Get Free Report)

KITS (TSX: KITS) is one of the world’s fastest growing eyecare providers, offering high-quality, affordable prescription glasses and contact lenses through its vertically integrated digital platform. With advanced in-house lens manufacturing, an industry-leading digital fit experience powered by OpticianAI, and thousands of 5-star customer reviews, KITS is redefining how Canadians experience eyecare. Designed in Canada. Delivered worldwide.

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