Kits Eyecare (TSE:KITS) Announces Earnings Results

Kits Eyecare (TSE:KITS) released its quarterly earnings data on Wednesday. The company reported C$0.06 EPS for the quarter, FiscalAI reports. The company had revenue of C$57.47 million during the quarter.

Here are the key takeaways from Kits Eyecare’s conference call:

• Kits reported its 14th consecutive quarter of >20% organic growth with Q1 revenue CAD 57.5M (+23% YoY, +27% constant currency), a record Adjusted EBITDA of CAD 4.1M (7.2%), and CAD 19M cash with zero long‑term debt.
• The glasses business accelerated meaningfully — glasses revenue CAD 10.8M (+61% YoY), ~156,000 pairs delivered (+50%), AOV for glasses ~35% higher YoY, premium lenses now 42% of glasses revenue, and the 2026 glasses cohort’s first‑order revenue is ~62% higher than the 2025 cohort.
• A non‑recurring CAD 2.1M tariff refund helped expand gross margin and was strategically reinvested into customer acquisition (marketing rose to 18.9% of revenue), driving ~100,000 new customers; management says this spend was time‑limited and will normalize toward prior marketing guardrails.
• Customer economics look durable — repeat revenue was 63.9% of sales, two‑year active customers exceeded 1.1M (+17% YoY), Autoship generated CAD 5.9M in Q1, and contact cohorts show very high net revenue retention (85–95%), supporting rising LTV.
• Q2 guidance is for CAD 57–59M revenue and 3–5% adjusted EBITDA margin; management reiterates a 2026 constant‑currency growth target of ~25–30% but flags seasonality and USD/CAD sensitivity.

Kits Eyecare Price Performance

Shares of KITS stock opened at C$11.57 on Friday. The company has a market cap of C$393.26 million, a PE ratio of 128.56 and a beta of 0.46. Kits Eyecare has a 1-year low of C$11.12 and a 1-year high of C$22.56.

Wall Street Analyst Weigh In

Several research firms recently issued reports on KITS. Canaccord Genuity Group decreased their target price on shares of Kits Eyecare from C$23.00 to C$22.00 and set a “buy” rating for the company in a research note on Thursday. Stifel Nicolaus dropped their price target on shares of Kits Eyecare from C$24.00 to C$21.00 and set a “buy” rating on the stock in a research report on Thursday. ATB Cormark Capital Markets cut their price objective on shares of Kits Eyecare from C$20.00 to C$16.75 and set a “speculative buy” rating for the company in a report on Thursday. Finally, Desjardins decreased their price objective on shares of Kits Eyecare from C$25.00 to C$23.00 and set a “buy” rating for the company in a research report on Thursday. Four equities research analysts have rated the stock with a Buy rating, According to data from MarketBeat, Kits Eyecare presently has an average rating of “Buy” and an average price target of C$20.69.

Kits Eyecare Company Profile

KITS (TSX: KITS) is one of the world’s fastest growing eyecare providers, offering high-quality, affordable prescription glasses and contact lenses through its vertically integrated digital platform. With advanced in-house lens manufacturing, an industry-leading digital fit experience powered by OpticianAI, and thousands of 5-star customer reviews, KITS is redefining how Canadians experience eyecare. Designed in Canada. Delivered worldwide.