Mr. Roger Hardy reports

KITS ISSUES FIRST QUARTER 2026 GUIDANCE REFLECTING CATEGORY-LEADING ORGANIC GROWTH OF OVER 25% AND GLASSES GROWTH EXCEEDING 50%

Kits Eyecare Ltd. today provided first quarter 2026 guidance reflecting continued category-leading growth and disciplined strategic investment to accelerate market share gains.

First quarter 2026 outlook (three months ending March 31, 2026)

• Revenue expected in the range of $58-million to $60-million reflecting 25-per-cent to 29-per-cent organic growth;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) as a percentage of revenue expected between 4 per cent and 6 per cent;
• Glasses revenue expected to exceed $10-million, representing over 50-per-cent year-over-year growth.

Sustained growth in a large, high-margin category

The optical market remains highly fragmented and structurally attractive, characterized by recurring demand and premium product mix expansion. Kits continues to outpace category growth, supported by:

• Increasing repeat customer behaviour;
• Expanding premium lens adoption;
• Strong customer acquisition efficiency;
• Continuing operating leverage within its vertically integrated model.

Management believes these trends reflect the durability and scalability of the Kits platform.

Strategic investment to accelerate share capture

During the quarter, the company is prudently continuing marketing investment to further expand brand awareness and accelerate market share gains.

This deliberate investment reflects management's confidence in:

• The company's customer lifetime value dynamics;
• Structural cost advantages from vertical integration;
• The long-term operating model.

Kits remains focused on disciplined capital allocation and value creation.

Financial strength and capital flexibility

The company maintains a strong balance sheet, supported by:

• Significant liquidity;
• A recently expanded $15-million credit facility complementing an already robust balance sheet;
• A conservative capital structure.

This flexibility enables Kits to invest from a position of strength while preserving strategic optionality.

Direct validation of platform quality

Over the past three years, Kits has consistently delivered:

• Durable double-digit revenue growth;
• Expanding earnings power;
• Strong repeat customer metrics;
• Category-leading growth among public North American peers.

Management believes this sustained performance demonstrates that Kits has evolved beyond a high-growth challenger into a scaled, profitable platform within a structurally advantaged industry.

As operating scale increases and earnings durability continues to strengthen, the company believes its valuation should increasingly reflect the quality, consistency and leadership position of the platform.

CEO commentary

Roger Hardy, Co-founder and chief executive officer of Kits, stated:

"Our performance continues to validate the strength of our vertically integrated model and our ability to capture share in a large, profitable category. We are executing with discipline, investing thoughtfully and building a platform designed to compound value over time.

"As we continue to demonstrate sustained growth and earnings durability, we believe the quality of business is becoming increasingly evident."

About Kits Eyecare Ltd.

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 five-star customer reviews, Kits is redefining how Canadians experience eyecare. Designed in Canada. Delivered worldwide.

We seek Safe Harbor.