DR. PHONE FIX ANNOUNCES POSITIVE Q2 2025 FINANCIAL RESULTS AND NEW AND EXPANDING STRATEGIC PARTNERSHIPS

Executive Summary

• Dr. Phone Fix Canada Corporation reported positive financial results for the three and six months ended June 30, 2025, highlighting revenue growth, improved gross margins, and a significant turnaround in Adjusted EBITDA.
• The company announced strategic partnerships, including a new national repair agreement with Likewize Corp. and an expanded partnership with Assurant, Inc., aimed at accelerating certified pre-owned (CPO) device sales and expanding market reach.
• Management provided optimistic guidance for the second half of 2025, expecting sustained gross margins and improved Adjusted EBITDA driven by procurement scale, CPO mix, and insurer/OEM program volumes.

Key Details

• Q2 2025 Financial Performance (Three Months Ended June 30, 2025):
  • Revenue: $2,857,000 CAD, an increase of 13% from $2,525,000 CAD in Q2 2024.
  • Gross Profit: $1,570,000 CAD, an increase of 20% from $1,310,000 CAD in Q2 2024.
  • Gross Margin: Expanded to 55.0% from 51.9% in Q2 2024.
  • Operating Expenses (SG&A): $2,376,000 CAD, an increase of 26% from $1,893,000 CAD in Q2 2024; this includes $510,000 CAD in non-cash share-based compensation.
  • Adjusted EBITDA: $280,000 CAD, a 506% improvement from a loss of $69,000 CAD in Q2 2024.
  • Cash & Equivalents: $761,000 CAD as of June 30, 2025, up 120% from $346,000 CAD in Q2 2024.
• Year-to-Date Financial Performance (Six Months Ended June 30, 2025):
  • Revenue: $5,054,000 CAD, an increase of 7% from $4,712,000 CAD in H1 2024.
  • Gross Profit: $2,781,000 CAD, an increase of 12% from $2,478,000 CAD in H1 2024.
  • Gross Margin: 55.0% compared to 52.6% in H1 2024.
  • Operating Expenses (SG&A): $4,130,000 CAD, an increase of 11% from $3,722,000 CAD in H1 2024. Excluding $510,000 CAD in share-based compensation, operating expenses decreased by approximately 3%.
  • Adjusted EBITDA: $282,000 CAD, a 227% improvement from a loss of $222,000 CAD in H1 2024. This improvement includes the add-back of $1,594,000 CAD in non-recurring listing and transaction expenses recognized in Q1 2025.
• Strategic Partnerships & Accomplishments:
  • Likewize Corp.: Entered into a national repair agreement in June 2025, allowing insured Canadians to access in-store repairs across Dr. Phone Fix's network.
  • Assurant, Inc.: Expanded strategic partnership in July 2025 to accelerate certified pre-owned (CPO) device sales nationwide, strengthening supply chain and inventory turnover.
  • Awards: Recognized as Canada's "Sustainable Business of the Year" by Google.
• Operational Metrics:
  • Revenue growth in H1 2025 was driven by ~6% from existing stores and ~1% from a new store contribution.
  • The company operates a nationwide network of 35 corporately owned cell phone and electronics repair stores across four Canadian provinces.
• Forward-Looking Guidance:
  • Management expects gross margin to remain strong in H2 2025 due to procurement scale, CPO mix, and increased insurer/OEM program volumes.
  • Adjusted EBITDA is expected to improve in H2 2025 due to ongoing cost discipline and volume increases.
  • Growth strategy includes measured new store openings and a disciplined M&A strategy targeting high-quality operators in markets with limited coverage.

Notable Quotes

• "Q2 showcased healthy top-line growth, margin strength and a return to positive Adjusted EBITDA, while we advanced national partnerships that expand our reach and credibility with insurers and OEM programs," said Piyush Sawhney, Chief Executive Officer of Dr. Phone Fix.
• "For the second half of 2025, we expect gross margin to remain strong as procurement scale, CPO mix, and insurer/OEM program volumes increase. Combined with ongoing cost discipline, we also expect Adjusted EBITDA to improve in the second half of 2025."
• "Our strategy is to target high-quality operators in markets where we lack coverage today, prioritizing cultural fit and strong unit economics. Post-acquisitions, we plan to drive additional value through centralized procurement, inventory and refurbishment capabilities, insurance and OEM program access, shared marketing, and our proven operating playbook."