Delivra Health and Its Brands LivRelief (TM) and Dream Water (TM) Report Results for Second Quarter of Fiscal 2026

Executive Summary

• Delivra Health Brands Inc. reported a decline in net revenue for the quarter ended Dec 31 2025, down 12% YoY to C$2.43 M and down 5% YoY for the first six months to C$5.64 M.
• Gross profit margin fell to 40% (Q3) and 44% (six‑month), reflecting a shift to lower‑margin product mix and higher vendor costs.
• Adjusted EBITDA remained negative, widening to $(369) K for the quarter and $(313) K for the six‑month period, driven by reduced sales volume and margin compression.

Key Details

• Revenue – Q3 2025: C$2,433 K vs. C$2,754 K YoY (‑12%).
• Revenue – Six‑Month 2025: C$5,640 K vs. C$5,917 K YoY (‑5%).
• Key drivers of revenue decline: Lower Dream Water® sales in U.S./Canada (‑C$183 K), lower LivRelief™ OTC sales (‑C$93 K), and reduced LivRelief™ Infused cream sales due to a new licensed distributor (‑C$45 K).
• E‑commerce growth: Dream Water® e‑commerce +26% YoY; LivRelief™ e‑commerce +28% YoY, partially offsetting retail weakness.
• Gross profit – Q3 2025: C$972 K (margin 40%) vs. C$1,294 K (47%) YoY.
• Gross profit – Six‑Month 2025: C$2,473 K (margin 44%) vs. C$2,891 K (49%) YoY.
• SG&A expenses – Q3 2025: C$1,391 K vs. C$1,544 K YoY (‑10%). Decrease driven by lower marketing spend (‑C$182 K) offset by modest G&A increase (+C$29 K).
• SG&A expenses – Six‑Month 2025: C$2,838 K vs. C$3,149 K YoY (‑10%). Marketing expense down C$426 K reflecting reduced campaign activity; G&A up C$115 K due to investor relations and consulting costs.
• Adjusted EBITDA – Q3 2025: $(369) K vs. $(194) K YoY.
• Adjusted EBITDA – Six‑Month 2025: $(313) K vs. $(176) K YoY (worsened by $(137) K).
• Loss from operations: Q3 $(450) K vs. $(647) K YoY; Six‑month $(472) K vs. $(1,052) K YoY.
• Net loss per share – Basic: $(0.01) for quarter; $(0.02) for six months (vs. $(0.03) and $(0.04) respectively in 2024).
• Management outlook: CEO Gord Davey emphasized focus on stabilizing retail ordering patterns, expanding U.S. direct‑to‑consumer channels, and optimizing distribution to return to consistent revenue growth.

Notable Quotes

“While our results this quarter reflect temporary timing variability in certain retail markets, we are encouraged by the strength of our core business fundamentals… We believe these initiatives position us well to return to consistent revenue growth while maintaining financial responsibility.” – Gord Davey, President & CEO

All figures are presented in thousands of Canadian dollars unless otherwise noted.