Kits Eyecare Ltd.

Good morning and welcome to the Kids iCare First Quarter 2025 Financial Results Conference Call. This call is being recorded and will be available later today for replay. Your hosts today are Roger Hardy, Chief Executive Officer, Joseph Thompson, Chief Operating Officer, and Shu, Chief Financial Officer. Before we begin, I'm required to provide the following statement respecting forward-looking information. which is made on behalf of kids and all of its representatives on this call. Certain statements made on this call will contain forward-looking information. These forward-looking statements generally can be identified by the use of words such as intent, belief, could, expect, estimate, forecast, may, would, and other words of similar meaning. This forward-looking information is based on management's opinions, estimates, and assumptions in light of their experience and perception of historical trends, current conditions, and expected future developments, as well as factors that they currently believe are appropriate and reasonable in their circumstances. Actual results differ materially from a conclusion, forecast, expectation, belief, or projection in the forward-looking information. and certain materials, factors and assumptions were applied in drawing a conclusion or making a forecast or projections as reflected in the forward-looking information. Management cautions investors not to rely on forward-looking information. Additional information about the material factors that could cause actual results to differ materially from the conclusion, forecast or projection in the forward-looking information and material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information are contained in kids' feelings with Canadian provincial security regulators. During today's call, all figures are in Canadian dollars unless otherwise stated.

And with that, I'd like to turn the call over to Mr. Roger Hardy. Please go ahead. Thanks, operator, and good morning, everyone.

It's great to be back with you to share the strong start we've had in 2025. Q1 was a milestone quarter for KITS, demonstrating the strength of our model and the compounding effect of the work we've been building toward over the past several quarters. As we begin 2025, I'd like to take a moment to reflect on just how far we've come. We started KITS in November of 2018 with a simple idea, to make eye care easy. Today, four years post our IPO, we've grown revenue by 128% and gross profit by almost 250% since our first quarter. Those numbers are credit to the steady, disciplined execution of the KITS team, and the team has been building with a mindset of building something enduring, not just for the next quarter, but for the next decades. Our KITS story is unique, one in the landscape of high-growth businesses. It's not something we take for granted, and certainly not something that is lost on us. We're acquiring efficiently, driving repeat purchases, expanding into higher margin categories, and converting customers into lifetime kits users. We still have exciting opportunities ahead of us. But when we look back over several years, we can see just how powerful consistent effort can be. And that's exactly what we plan to keep doing. It's been an incredible journey so far, and this would not be possible without our KITS team that continues to execute with relentless focus across every level of the organization. During our last earnings call, we set our Q1 revenue expectations at $46 million to $48 million, with a targeted adjusted EBITDA margin of 4% to 6%. I'm proud to report that we've delivered record revenue of $46.6 million, up 34% year over year. All four key segments of our business grew in excess of 30% this quarter. with glasses revenues growing 46%, contact lens revenues growing 32%, while Canada grew 35% and the USA grew 33%. This is our 10th consecutive quarter of positive adjusted EBITDA, exceeding our guidance to reach 3.5 million or 7.4% of revenue, our highest margin to date. During Q1, we saw significant improvement on margins. Gross profit grew over 53% year over year, reaching $17.1 million, with gross margin expanding 460 basis points to 36.7%, up from 32.1% in Q1 last year. We achieved this while absorbing record new customer growth, which typically carries a lower AOV. Over time, it's our belief that as we continue to do unique, high-value, hard things for customers, like progressive lenses, branded KISS contacts, and branded optical lenses, our margins will continue to expand. This won't be overnight, but there can be no question that the trend is clear. Our kits offerings are resonating with customers, driving higher order values, higher repeat purchases, and higher margins over time. Performance was driven by balanced strength across both new and returning customers. We welcomed over 95,000 new customers, a record for kits, and a 28% increase year over year. At the same time, our loyal core customers continue to drive meaningful results with 62% of total revenue coming from returning customers. Our kits auto ship program alone contributed almost $6 million in revenue, up 11% year over year. That's nearly 24 million in annualized annuity revenue. This is a critical and growing engine of predictable high margin revenue from our contact lens segment. Additionally, we saw strong early traction in our Kits Plus loyalty program, which we introduced to further deepen customer engagement for Glass's customers. Though still in its early stages, the signals are clear. Kits Plus members are reordering faster and at higher AOVs. These are among our most valuable customers, and we continue to build new ways to serve and retain them. Lens upgrades were another major highlight this quarter. reinforcing both customer demand for tailored solutions and our ability to deliver margin-accretive products at scale. Revenue from premium upgrades grew nearly 60% year-over-year, where margins remain healthy, highlighting the growing preference among customers for higher-end, value-added features that enhance both vision and style. For the first quarter, we surpassed 100,000 glasses units, delivering 104,000 pairs of glasses. in the quarter, a 39% increase over Q1 2024. We are seeing consistent behavior across cohorts, where initial lower values convert into premium repeat purchases over time. To support this demand, we've expanded our frame assortment to over 6,700 styles, leveraging designer partnerships and a just-in-time model that allows us to scale efficiently without increasing inventory risk. Our combination of selection, quality, and vertical integration is unmatched in the market today. Looking ahead to Q2, we expect continued momentum with revenue projections in the range of $48 million to $50 million and an adjusted positive EBITDA margin between 3% and 5%. Thank you again for your continued support. With that, I'd like to hand the floor to Joe, who will provide further details on our operational performance. Joe?