Dr. Phone Fix posts 32% Q2 revenue growth, positive EBITDA

Canada NewsWire

First-half revenue rises 37%, Adjusted EBITDA grows 67%, and comparable-store revenue increases 23%

EDMONTON, AB , Aug. 31, 2026 /CNW/ -- Dr. Phone Fix Canada Corporation (TSXV: DPF) ("Dr. Phone Fix" or the "Company"), one of Canada's fastest-growing and award-winning integrated device care platforms, is pleased to announce its financial and operational results for the three and six months ended June 30, 2026.

The Company delivered strong year-over-year growth in revenue, gross profit and Adjusted EBITDA in both periods, supported by same-store sales growth, contributions from recently added locations and continued execution across its national platform.

"Q2 built on the momentum established in the first quarter, with revenue increasing 32%, gross profit increasing 26% and Adjusted EBITDA increasing 36% year over year," said Piyush Sawhney, Founder and Chief Executive Officer of Dr. Phone Fix. "For the first half, revenue reached $6.9 million and Adjusted EBITDA grew 67%, while same-store sales grew 23%. These results reflect the improving productivity of our existing network and the early benefits of integrating acquired locations into our operating platform."

"Our focus remains on disciplined execution: improving store-level performance, expanding our product and service offering, integrating acquired operations and selectively expanding our geographic footprint. Following quarter-end, we completed our acquisition in New Brunswick, further strengthening our Atlantic Canada platform after our recent expansion into Nova Scotia. We believe our centralized operating infrastructure provides a foundation to support continued growth as we expand our integrated device care platform."

The financial information presented below is derived from the Company's unaudited condensed interim consolidated financial statements for the three and six months ended June 30, 2026, prepared in accordance with IFRS, and should be read in conjunction with those financial statements and the Company's interim MD&A dated August 26, 2026.

Financial Results Summary

(1) Adjusted EBITDA is a non-GAAP financial measure. See 'Non-GAAP Financial Measures' below.

Q2 2026 Financial and Operational Highlights

Revenue increased 32% to $3.76 million, compared with $2.86 million in Q2 2025. Approximately 60% of the year-over-year increase was attributable to same-store sales growth. Revenue also increased 19% from Q1 2026.

Gross profit increased 26% to $1.98 million, compared with $1.57 million in Q2 2025. Gross margin was 52.7%, compared with 55.0% a year earlier, primarily reflecting changes in the Company's overall product and service mix and other normal operating factors. The gross margin in Q2 2026 improved from 51.3% in Q1 2026.

Operating expenses, excluding share-based compensation, increased 22% to $2.27 million, compared with $1.87 million in Q2 2025, primarily reflecting the expanded store base.

Adjusted EBITDA increased 36% to $0.38 million, compared with $0.28 million in Q2 2025, reflecting higher gross profit and operating leverage.

Cash flow from operating activities before changes in non-cash working capital increased 36% to $0.31 million, compared with $0.23 million in Q2 2025.

Cash generated by operating activities was $0.85 million, compared with $0.03 million used in operating activities in Q2 2025.

Net loss improved 20% to $0.87 million, compared with $1.09 million in Q2 2025.

Cash was $0.81 million at June 30, 2026, compared with $0.76 million at June 30, 2025 and $0.23 million at December 31, 2025.

The Company operated 44 corporately owned stores across five provinces at June 30, 2026, providing a broader base for repair, certified pre-owned device and accessory sales.

First-Half 2026 Financial Highlights

Revenue increased 37% to $6.92 million, compared with $5.05 million in H1 2025. Stores operating in both periods contributed approximately $1.2 million of the increase, while locations not open or owned throughout the comparable period contributed approximately $0.7 million.

Gross profit increased 30% to $3.60 million, compared with $2.78 million in H1 2025. Gross margin was 52.1%, compared with 55.0%, primarily reflecting changes in the Company's overall product and service mix and other normal operating factors.

Operating expenses, excluding share-based compensation, increased 23% to $4.45 million, compared with $3.62 million in H1 2025, primarily reflecting the expanded store base, including higher employee salaries and benefits and depreciation.

Adjusted EBITDA increased 67% to $0.47 million, compared with $0.28 million in H1 2025.

Cash from operating activities before changes in non-cash working capital increased to $0.37 million from $0.19 million in H1 2025. Cash generated by operating activities, including working-capital changes, was $1.18 million compared with $0.15 million used in H1 2025.

Net loss improved 42% to $2.04 million, compared with $3.50 million in H1 2025.

First-Half 2026 Operational Highlights

Same-store sales increased 23% compared with H1 2025 for locations operating in both periods, reflecting improved execution, increasing brand recognition and continued demand for repair and certified pre-owned device services.

The six Geebo locations delivered revenue growth of 18.8%, including a 19.5% increase in repair revenue and a 16.5% increase in repair units. Certified pre-owned device unit sales increased 76.6%, while accessory revenue increased 33.1%. Management believes performance during the period was supported by the integration of the locations into the Company's centralized operating platform, including centralized procurement and inventory management, expanded product availability, standardized operating processes and enhanced in-store sales execution.

The Financial Times recognized Dr. Phone Fix as one of the Americas' Fastest Growing Companies for the second consecutive year.

Subsequent to Quarter-End

On July 17, 2026, the Company closed the second tranche of its convertible debenture financing, issuing 726 units for gross proceeds of $726,000. Together with the first tranche completed in June, the Company had raised aggregate gross proceeds of $1.61 million as of July 17, 2026.

In August 2026, the Company completed its previously announced acquisition of the assets of Cell Phone Solutions in Saint John, New Brunswick for total consideration of approximately $144,440, including inventory, and continued advancing its Atlantic Canada expansion strategy.

The Company subsequently executed an additional retail lease in Atlantic Canada, supporting its strategy of increasing regional density and strengthening national brand coverage.

About Dr. Phone Fix

Dr. Phone Fix is a Canadian integrated device care platform providing repair, refurbishment, certified pre-owned devices, trade-in solutions, accessories and related services through its growing national retail network. Founded in 2019, the Company serves consumers and businesses across multiple Canadian markets, delivering convenient and reliable device care solutions through its corporately owned retail network. With a focus on operational execution, customer service and sustainability, Dr. Phone Fix continues to expand its national platform while supporting the repair, reuse and extension of the useful life of connected devices.

Dr. Phone Fix is traded on the TSX Venture Exchange ("TSXV") under the symbol "DPF".

Additional information about the Company, including Company's unaudited condensed interim consolidated financial statements and management's discussion and analysis for the three and six months ended June 30, 2026, is available on SEDAR+ at www.sedarplus.com .

NEITHER THE TSXV NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSXV) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.

Non-GAAP Financial Measure

Adjusted EBITDA is used by management and investors to analyze the Company's profitability based on the Company's principal business activities regardless of how these activities are financed, assets are depreciated and amortized, and results are taxed in various jurisdictions or subject to entity-specific tax planning. Below is a reconciliation of net loss to the non-GAAP financial measure of Adjusted EBITDA:

Adjusted EBITDA is defined by the Company as a financial measure equal to net income (loss) before finance costs, depreciation and amortization, and income tax provisions. EBITDA is compared to net income (loss), the closest comparable IFRS measure. Adjusted EBITDA further adjusts EBITDA by excluding: (1) share-based compensation, as it is a non-cash expense; (2) extraordinary, unusual or infrequent items (including listing and transaction expenses); (3) items related to investing decisions, such as gain (loss) on disposal of assets; (4) items that are not related to core operations and are not indicative of operational performance, including fair value adjustments, interest income, impairment losses and government assistance; and (5) interest on lines of credit and other interest included in operating income. Adjusted EBITDA is not a standardized financial measure under IFRS and may not be comparable to similar measures presented by other issuers. It should not be considered in isolation or as a substitute for financial measures prepared in accordance with IFRS.

Cautionary Statement Regarding Forward-Looking Information

This news release contains "forward-looking information" within the meaning of applicable securities laws. Forward-looking information can be identified by words such as "intend," "believe," "estimate," "expect," "may," "will," "would," "could," "should," "plans," "anticipates," "targeted," "continues," "goal," and similar references to future periods. Forward-looking information includes, but is not limited to, statements regarding the Company's growth strategy, anticipated store expansion, strategic acquisitions, integration initiatives, the Company's objective of scaling toward approximately 70 locations, expectations regarding revenue growth, profitability, Adjusted EBITDA, operating leverage, cash generation, store-level productivity, and the timing, completion and expected benefits of future acquisitions, expansion initiatives and financings.

Forward-looking information is based on management's current expectations, assumptions and estimates as of the date of this news release. Key assumptions underlying the forward-looking information in this news release include, among others: the Company's ability to complete the subsequent tranche(s) of the Debenture Financing on the expected timeline and terms; the continued availability of suitable acquisition targets and new store locations at acceptable economics; the Company's ability to successfully integrate acquired operations and achieve anticipated operational synergies; consumer demand for device repair and certified pre-owned device services will continue at or above current levels; and general economic, competitive and market conditions will not materially deteriorate. These assumptions, while considered reasonable by management as of the date hereof, are subject to significant uncertainties and contingencies, and are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to differ materially from those expressed or implied by such forward-looking information. These risks include, among others, risks relating to the Company's ability to complete financings or acquisitions on expected terms or at all, risks relating to integration of acquired businesses, store expansion and lease execution, changes in consumer demand, supply chain and inventory availability, competitive conditions, availability of capital, liquidity, reliance on key personnel, and general economic, business and market conditions. Additional risks are described under 'Risks and Uncertainties' in the Company's MD&A for the year ended December 31, 2025 and the interim MD&A dated August 26, 2026, each available on SEDAR+ at www.sedarplus.com . Readers are cautioned not to place undue reliance on forward-looking information. The Company undertakes no obligation to update or revise any forward-looking information except as required by applicable law.

SOURCE Dr. Phone Fix

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Canada Newswire

August 31, 2026 - 4:30 AM PDT

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