KITS Eyecare Reports Preliminary Third Quarter 2026 Results

Q3 Revenue Grew 21.6% Year-Over-Year to a Record of Approximately $63.7 Million, Surpassing a $250 Million Annualized Run-Rate for the First Time

Q3 Glasses Revenue Grew 59.3% Year-Over-Year to a Record of Approximately $11.3 Million

Q3 Preliminary Adjusted EBITDA Exceeded 4.5% of Revenue

Cash Increased $3.2 Million in the Quarter to Approximately $30.6 Million, With No Debt

VANCOUVER, BC, Oct. 7, 2026 /CNW/ -- Kits Eyecare Ltd. (TSX: KITS) ("KITS" or the "Company"), the leading vertically integrated eyecare provider, is providing selected preliminary unaudited results for its third quarter ended September 30, 2026.

Select Preliminary Third Quarter 2026 Financial Highlights:

• Total Revenue grew 21.6% year-over-year to approximately $63.7 million, accelerating from 17.8% growth in Q2 2026.
• Glasses Revenue grew 59.3% year-over-year to approximately $11.3 million, accelerating from 54.0% growth in Q2 2026.
• Preliminary Adjusted EBITDA exceeded 4.5% of revenue, or $2.9 million, as the Company continued to invest in glasses growth, its Toronto retail store and marketing.
• Net Revenue Retention of approximately 92% at 24 months for the Q3 2024 customer cohort, and 189% at 48 months for the Q3 2022 cohort.
• Cash increased $3.2 million in the quarter to approximately $30.6 million, with no debt.

"Our growth accelerated this quarter, and it came from the parts of the business that matter most for the long term," said Roger Hardy, Co-Founder and CEO. "Glasses revenue grew nearly 60% and is becoming a second growth and gross margin engine alongside contacts, and our customer cohorts continue to compound. We are growing profitably with a strong balance sheet and no debt, which gives us flexibility to keep investing in our momentum."

The Company looks forward to reporting its full third quarter 2026 results in early November 2026. Details for the third quarter 2026 conference call will be disclosed in the coming weeks.

About KITS

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 North Americans experience eyecare. Designed in Canada. Delivered worldwide. For more information on KITS, visit: www.kits.com.

Non-IFRS Financial Measures and Industry Metrics

This press release includes references to certain non-IFRS financial measures such as EBITDA, Adjusted EBITDA, Adjusted EBITDA margin percentage and certain industry metrics. These financial measures and industry metrics are employed by the company to measure its operating and economic performance and to assist in business decision-making, as well as providing key performance information to senior management. The company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors and analysts use this information to evaluate the company's operating and financial performance. These financial measures are not defined under IFRS, nor do they replace or supersede any standardized measure under IFRS. Other companies in our industry may calculate these measures differently than we do, limiting their usefulness as comparative measures. Definitions and reconciliations of non-IFRS measures to the nearest IFRS measure and Industry Metrics can be found in our Management's Discussion and Analysis.

Forward-Looking Statements

This press release contains forward-looking statements, including statements relating to the execution of our proposed strategy, our operating performance and prospects for the business. These forward-looking statements generally can be identified by the use of words such as "intend," "believe," "could," "continue," "expect," "estimate," "forecast," "may," "potential," "project," "plan," "would," "will," and other words of similar meaning. Each forward-looking statement contained in this press release is subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such a statement. Our business is subject to substantial risks and uncertainties. This forward-looking information and other forward-looking information are based on our opinions, estimates and assumptions in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we currently believe are appropriate and reasonable in the circumstances. Despite a careful process to prepare and review the forward-looking information, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. Certain assumptions in respect of the expansion and enhancement of our fulfillment network, including our optical laboratory for glasses and warehouse facilities; the growth of our business and launch of new technologies; premium lens adoptions and smart eyewear expansion; our ability to drive sales growth; our ability to maintain, enhance, and grow within our addressable market; our ability to drive ongoing development and innovation of our exclusive brands and product categories; our ability to continue directly sourcing from third party suppliers and manufacturers; our ability to retain key personnel; our ability to add, maintain and expand production, distribution and fulfillment capabilities; our ability to continue investing in infrastructure to support our growth; our ability to obtain and maintain existing financing on acceptable terms; currency exchange and interest rates; the impact of competition; the changes and trends in our industry or the global economy; the impact of tariffs and U.S. and international trade actions, policies and reform; and the changes in laws, rules, regulations, and global standards. KITS' risks and uncertainties are discussed in detail in the company's Annual Information Form, filed on SEDAR+ on March 4, 2026. Investors, potential investors, and others should give careful consideration to these risks and uncertainties. We caution investors not to rely on the forward-looking statements contained in this press release when making an investment decision in our securities. The forward-looking statements in this press release speak only as of the date of this release, and we undertake no obligation to update or revise any of these statements, except as required under applicable securities laws. If we do update certain forward-looking information, no inference should be made that we will further update such or other forward-looking information.

SOURCE KITS Eyecare Ltd.

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