DR. PHONE FIX REPORTS RECORD Q1 2026 RESULTS AND CONTINUED NATIONAL EXPANSION MOMENTUM

• Dr. Phone Fix Canada Corp. reported Q1 2026 financial results showing revenue of $3.16M, a 44% year-over-year increase, with same-store sales growing 29%.
• Adjusted EBITDA turned positive at $88k, compared to a ($13k) loss in Q1 2025. Operating cash flow also turned positive at $0.33M.
• Gross margin contracted to 51.3% from 55.1% in Q1 2025, primarily due to a higher mix of lower-margin certified pre-owned (CPO) device sales.
• Net loss improved to $1.17M from $2.41M in Q1 2025, though this was heavily influenced by the absence of one-time listing/transaction costs in the prior year and $0.3M in share-based compensation.
• Balance sheet cash declined to $291k from $1.56M in Q1 2025, reflecting prior financing and operating activities.
• Post-quarter, the company secured a $2.5M convertible debenture financing and signed a definitive agreement to acquire Cell Phone Solutions for ~$175k, marking entry into New Brunswick (sixth province).
• The company now operates 44 corporately owned locations across five provinces and was ranked #143 on the Financial Times' "Americas' Fastest Growing Companies" list.

• The Q1 results are in line with or slightly exceed expectations given the company's aggressive expansion trajectory and historically weak seasonal performance. The turn to positive Adjusted EBITDA and operating cash flow demonstrates improving operational leverage and execution.
• The $2.5M convertible debenture and $175k acquisition were announced in May 2026, meaning the market has already priced in this capital raise and expansion. The Q1 report serves as a confirmation of execution rather than a new catalyst.
• Gross margin compression is a notable headwind. While CPO sales drive top-line growth, they dilute profitability. Management's guidance that margins will recover as the product mix stabilizes and seasonal discounting ends is plausible but unproven.
• The liquidity position remains tight. Cash on hand is only $291k against a $4.0M working capital deficit and $7.1M in total debt. The debenture provides temporary bridge capital but introduces significant dilution risk via conversion and warrants.
• Overall, the news is Routine - Positive. It validates the growth strategy but does not materially alter the underlying risk profile regarding capital intensity, dilution, and margin pressure.

• Dr. Phone Fix Canada Corp. operates a network of corporately owned mobile device repair and sales locations.
• Flagship project: National expansion through a dual-pillar strategy of disciplined acquisitions and selective organic store openings. The company aims to grow from 44 to ~70 locations within 12-18 months.
• The business model relies on a centralized operating platform to standardize training, procurement, and marketing, while leveraging OEM-authorized repair capabilities and insurance partnerships to drive volume and productivity.
• The company has been recognized for sustainable business practices and customer service, with over 30,000 online reviews and a 4.9-star rating.