KITS Eyecare Reports Record First Quarter 2026 Results

• KITS Eyecare reported Q1 2026 revenue of $57.5 million, a 23.3% increase year-over-year.
• Adjusted EBITDA reached $4.1 million with a 7.2% margin, exceeding the previous guidance range of 3.0% to 5.0%.
• Net income was $2.0 million ($0.06 per share), up from $1.6 million in Q1 2025.
• The glasses segment drove significant growth with revenue up 60.5% YoY to $10.8 million and units delivered up 50%.
• Premium lens upgrades increased 75.5% YoY, accounting for 41.8% of glasses revenue.
• Liquidity remains strong with cash at $19.0 million; the company fully repaid its BMO asset-based lending facility balance on January 2, 2026, leaving $15 million available and undrawn.
• Q2 2026 guidance was issued for revenue of $57.0 million to $59.0 million and Adjusted EBITDA margin of 3.0% to 5.0%.

• The earnings release confirms the company's trajectory established in February 2026 guidance, validating the growth thesis without a major deviation.
• Revenue of $57.5 million slightly missed the upper end of the previous guidance range ($58M-$60M) but remained within the lower bound expectations.
• The Adjusted EBITDA margin beat (7.2% vs 3-5% guidance) is a positive surprise indicating improved operational leverage and cost control.
• Debt-free status with an undrawn $15 million credit facility reduces financial risk and provides flexibility for future marketing or expansion without dilution.
• The stock has corrected significantly from January highs ($21.93) to current levels ($14.29); this news acts as a fundamental floor but does not immediately reverse the technical downtrend seen in Q1 2026.
• No new strategic investors or M&A activity was announced, limiting the potential for an immediate re-rating event compared to previous quarters.

• KITS Eyecare operates a vertically integrated, digital-first vision care platform focusing on prescription eyewear and contact lenses.
• Flagship product includes the Pangolin AI glasses (Gen 3 currently active), with Gen 4 planned for 2026 featuring camera, video, voice, and full AI integration.
• The company has expanded its physical footprint with a Vancouver flagship store and is opening a second Toronto location in Q1 2026.
• Customer metrics show strong retention with repeat orders accounting for over 63% of total revenue in Q1 2026.
• Two-year active customer base reached 1,108,000, up 17.1% year-over-year.