Q3 2025 Roots Corp Earnings Call Transcript

Dec 10, 2025 / 01:00 PM GMT

Release Date Price: €2.06 (+1.98%)

Transcript

Key Points

Positve

Roots Corp (RROTF) reported a 6.8% increase in revenue for Q3 2025, reaching CAD 71.5 million.
Direct to consumer sales rose by 4.8% to CAD 56.8 million, with comparable sales growth of 6.3%.
The company achieved a direct to consumer gross margin of 65.4%, an improvement of 140 basis points.
Roots Corp (RROTF) saw a 15.3% increase in sales from partners and others, driven by strong growth in the B2B channel.
The company has successfully reduced markdowns and improved product mix, contributing to better financial performance.

Negative

SG&A expenses increased by 10.6% to CAD 38.2 million, driven by higher marketing and personnel costs.
Net income decreased by 4.5% to CAD 2.3 million, despite revenue growth.
The company experienced a free cash outflow of CAD 4.6 million in Q3 2025.
Inventory levels increased by 10.3% to CAD 66.6 million, partly due to higher foreign exchange costs.
The retail environment remains dynamic, with challenges such as an unusually warm fall impacting sales.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

ROOT.TO - Roots Corp
Q3 2025 Roots Corp Earnings Call
Dec 10, 2025 / 01:00PM GMT

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Presentation
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Unidentified_1 [1]
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Good morning. My name is Elliott, and I'll be your conference operator today.

At this time, I would like to welcome everyone to reach 3rd quarter earnings conference call for fiscal 2025.

All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session.

If you'd like to ask a question during this time, simply press #1 on your telephone keypad. If you'd like to withdraw your question, please press star, then the number 2.

On the call today we have Megan Roach, President and Chief Executive Officer, and Leon Wu, Chief Financial Officer.

Before the conference call begins, the company would like to remind listeners that the call,

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