Diamond Estates Wines & Spirits Reports Q1 2026 Financial Results

Executive Summary

• Diamond Estates Wines & Spirits Inc. reported strong financial results for Q1 2026 (three months ended June 30, 2025), marking the strongest performing quarter since Q3 2018.
• The company achieved a net income of $0.4 million, a significant turnaround from a $2.0 million net loss in the prior year period, driven by substantial increases in revenue and gross margins.
• Revenue grew to $8.3 million from $6.2 million year-over-year, with the Winery division driving growth through retail expansion and VQA rebate enhancements, while the Agency division saw a decrease due to the sale of Western Canada operations, partially offset by the acquisition of Perigon.

Key Details

• Revenue: $8.3 million for Q1 2026, an increase of $2.1 million (33.9%) from $6.2 million in Q1 2025.
• Gross Margin: $4.7 million, an increase of $1.9 million from $2.8 million in Q1 2025. Gross margin as a percentage of revenue improved to 56.5% from 44.8%.
• EBITDA: Increased by $2.5 million to positive $1.4 million in Q1 2026, compared to negative $1.1 million in Q1 2025.
• Adjusted EBITDA: Increased by $1.7 million to positive $1.3 million in Q1 2026, compared to negative $0.4 million in Q1 2025.
• Net Income/Loss: Turned from a net loss of $2.0 million in Q1 2025 to a net income of $0.4 million in Q1 2026 (an improvement of $2.4 million).
• Winery Division Performance: Sales increased by $2.9 million, driven by industry retail expansion, the D'Ont Poke the Bear brand, VQA rebate enhancements, and buy-local consumer sentiment. Gross margin in this division increased by $1.8 million due to higher sales volumes in grocery and convenience channels.
• Agency Division Performance: Sales decreased by $0.8 million, primarily due to the sale of Western Canada operations to Renaissance, which was offset by the acquisition of Perigon. Gross margin in this division increased by $0.1 million.
• Subsequent Event: In July 2025, the Company issued 221,875 Deferred Share Units (DSUs) to settle $44,375 of previously accrued deferred directors compensation.
• Management Change: Basman Alias joined as Chief Financial Officer, succeeding the previous CFO.

Notable Quotes

• Andrew Howard, President and CEO: "Q1 2026 was the strongest performing quarter since Q3 2018, highlighting the meaningful progress we have made in strengthening our business. With our turnaround continuing to progress, we remain focused on executing our growth initiatives... These initiatives, along with our disciplined sales execution, position the Company to deliver ongoing value to our stakeholders."
• Basman Alias, CFO: "I am truly excited to be joining Diamond Estates at such a pivotal time in its turnaround journey. The Company has already demonstrated strong momentum through disciplined execution, channel expansion, and renewed consumer enthusiasm for Canadian wines. My focus as Chief Financial Officer will be to build on this foundation—strengthening our financial disciplines, supporting sustainable growth, and helping the team execute on our long-term strategy."