Dr. Phone Fix loses $497,000 in Q3

Mr. Piyush Sawhney reports DR. PHONE FIX REPORTS Q3 2025 RESULTS AND CONTINUED NATIONAL EXPANSION MOMENTUM Dr. Phone Fix Canada Corp. has released financial results for the three and nine months ended Sept. 30, 2025, and provided an update on recent corporate developments. The company operates a network of 35 corporately owned stores across four Canadian provinces. "Q3 demonstrated strong same-store sales performance, stable margins and meaningful positive EBITDA [earnings before interest, taxes, depreciation and amortization] improvement, supported by continued operational discipline and expanding national partnerships," said Piyush Sawhney, chief executive officer of Dr. Phone Fix. "Year to date, adjusted EBITDA has reached $700,000, an improvement of more than 1,000 per cent, highlighting the strength of our operating model as we scale." Mr. Sawhney continued: "Looking ahead, our growth playbook combines measured new store openings with a disciplined M&A [merger and acquisition] strategy to accelerate scale. Today, we operate 35 corporately owned stores. Upon closing our acquisition of substantially all of the assets of Geebo Device Repair Inc. over the coming days, our footprint will expand to 41 stores nationwide, and we are on target to open four additional stores before the end of 2025, bringing us to 45 operating locations by year-end. Our strategy remains to target high-quality operators, deepen our procurement and refurbishment capabilities, strengthen insurer and OEM [original equipment manufacturer] program access, and leverage our proven operating playbook to drive cash generation at the unit level. Taken together, we believe this approach will expand our footprint efficiently, deepen our national coverage and enhance long-term profitability." Q3 2025 financial highlights: Revenue increased 14 per cent to $3.27-million, compared with $2.87-million in Q3 2024, driven primarily by strong same-store sales growth. Gross profit increased 9 per cent to $1.75-million. Gross margin of 53.5 per cent reflected normal CPO (certified preowned) mix variability due to higher demand for premium devices. Operating expenses decreased 3 per cent despite operating an additional store and expanded corporate activity. Adjusted EBITDA increased 181 per cent to $420,000, compared with $150,000 in Q3 2024, driven by higher gross profit and lower salaries and benefits. Cash ended at $770,000, supported by improved working capital and the March private placement. Year-to-date financial highlights: Revenue increased 10 per cent to $8.32-million, compared with $7.58-million in Q3 2024 year to date, with 9-per-cent growth from existing stores and 1-per-cent growth from the newest location. Gross profit increased 11 per cent to $4.53-million, compared with $4.07-million last year, with year-to-date gross margin improving to 54.4 per cent from 53.8 per cent due to stronger purchasing power and supplier partnerships. Operating expenses (selling, general and administrative expenses) increased 6 per cent to $6.05-million, compared with $5.7-million in Q3 2024 year to date. Excluding share-based compensation, operating expenses decreased by approximately $200,000 year over year, despite operating an additional store. Adjusted EBITDA reached $700,000, compared with a loss of $700,000 last year, reflecting improved gross profit and disciplined expense management. Q3 2025 accomplishments: Expanded partnership with Assurant (July, 2025), further strengthening nationwide CPO device sales channels and deepening insurer-driven customer volume; Recognized nationally for sustainability leadership, earning the designation of Canada's Sustainable Business of the Year; Over 30,000 reviews and a 4.9-star network rating, reinforcing Dr. Phone Fix as one of Canada's most trusted electronics repair brands. Subsequent to quarter-end: Exclusive partnership with the Alberta Motor Association (November, 2025), giving AMA's more than one million members discounted access to Dr. Phone Fix repair services across Alberta; Definitive agreement to acquire Geebo Device Repair Inc., a six-store chain in Nova Scotia, expanding Dr. Phone Fix into Atlantic Canada for the first time; closing is expected over coming days; Two new store leases signed, one in Alberta and one in Ontario, with openings scheduled over the coming months; Completion of an oversubscribed $2.57-million non-brokered private placement in two tranches, supporting growth capital for acquisitions, store expansion and partnership investments; Strengthened industry partnerships, including insurance/OEM program expansion, which continue to enhance procurement economies and increase high-volume CPO throughput. About Dr. Phone Fix Canada Corp. Dr. Phone Fix is an award-winning, eco-friendly and customer-centric leader in Canada's cellphone and electronics repair and preowned resale industry. Founded in 2019, Dr. Phone Fix operates 35 corporately owned retail locations across Canada, offering fast and reliable device repairs, certified preowned devices, and a wide range of accessories. The company maintains strong relationships with OEMs and certified suppliers to ensure high-quality service and product offerings. Dr. Phone Fix is traded on the TSX Venture Exchange under the symbol DPF. We seek Safe Harbor.