Diamond Estates Wines & Spirits Reports Q2 2026 Financial Results

Executive Summary

• Diamond Estates reported Q2 2026 revenue of $8.5 M, up $0.8 M YoY, with gross margin improving to 69.8% and Adjusted EBITDA rising to $1.8 M.
• Net income fell to nil from $0.2 M in the prior year due to non‑operational items and one‑time costs.
• The company completed several equity‑related transactions, including issuance of 764,917 common shares at $0.21 each (contingent consideration) and a 60‑day forbearance on convertible debentures.

Key Details

• Revenue: $8.5 M (↑ $0.8 M YoY).
• Gross Margin: $5.9 M; margin % increased from 53.8% to 69.8%.
• Adjusted EBITDA: $1.8 M (↑ $1.3 M YoY).
• EBITDA: $0.9 M (↓ $0.1 M YoY).
• Net Income: $0 M (down from $0.2 M YoY).
• Common Share Issuance (contingent consideration): 764,917 shares @ $0.21 per share on July 22 2025.
• Deferred Share Units (DSU) Settlement: 248,683 DSUs issued in Oct 2025 for $47,250 accrued director compensation.
• Stock Option Grant: 1,250,000 options @ $0.19 strike price granted Oct 2025; five‑year term, vesting 25% annually.
• Security‑Based Compensation Plan Amendments: Plans converted to “fixed up to 20%” caps; total max issuable shares now 13,376,703.
• BMO Credit Agreement Amendment (Nov 7 2025): Maturity extended to Mar 27 2026; temporary $3.6 M bulge in revolving line; interest rate on bulge increased to prime + 2.65%.
• Debenture Forbearance: 60‑day forbearance obtained; majority expected rollover under updated terms; remaining ~$100k obligations to be settled cash and/or shares.
• Equity Issuance to 2RL Capital (June 20 2025): 270,270 common shares @ $0.185 per share issued under engagement letter for Perigon acquisition services.

Notable Quotes

“Q2 marks another very strong quarter… rapidly improving financial results that demonstrate real progress and momentum.” – Andrew Howard, President & CEO.