Kits Eyecare Ltd.

Good morning and welcome to the KITS iCare Second Quarter 2025 Financial Results Conference Call. This call is being recorded and available later today for replay. Your hosts today are Roger Hardy, Chief Executive Officer, Joseph Thompson, Chief Operating Officer, and Zhe Chu, Chief Financial Officer. Before we begin, I am required to provide the following statement respecting forward-looking information. which is made on behalf of KITS 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 the words such as intend, believe, 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 the circumstances. Actual results could differ materially from a conclusion, forecast, expectation, belief, or projection in the forward looking information. And certain material factors and assumptions were applied in drawing a conclusion. or making a forecast or projection 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 KIT's filings with the 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 a call over to Mr. Roger Hardy.

Please go ahead. Good morning and thank you all for joining us today.

We're excited to share our Q2 2025 results, which reflect continued execution on our mission to make eye care easy. Kits delivered strong performance in the second quarter, underscoring the durability of our model and the distinctiveness of our strategy. we continue to lead with a customer-first approach, focusing on the most valuable vision-correct consumers in the category and leveraging proprietary technology to deliver a level of convenience, value, and personalization that traditional eye care providers cannot match. Our foundation is built on acquiring and retaining a growing base of annuity-like customers who return to KITS for their evolving vision needs. As we broaden our portfolio of eyewear and optical products, We aim to ensure that every customer visit is met with exceptional service, selection, and value. During our last earnings call, we set out our Q2 revenue expectations at $48 to $50 million with a targeted adjusted EBITDA margin of 3% to 5%. I'm proud to report we delivered record revenue of $49.6 million, up 31% year-over-year. This is our 11th consecutive quarter of positive adjusted EBITDA, exceeding our guidance to reach $2.6 million, or 5.2% of revenue. We led the category in revenue growth, with particularly strong performance in Canada, where revenue increased approximately 44% year-over-year, driven by both new and returning customers across classes and contact lenses. That growth was led by Glasses, which grew 44% year over year and now represent a larger share of the business than ever before. Glasses have always been at the core of our long-term strategy that would be the engine to drive our long-term value creation. It's a larger market, a more complex category, and one where vertical integration especially matters. And Q2 showed the power of this business segment. We delivered over 112,000 pairs of glasses, up 53% year-over-year. And our glasses revenues rose to $7.2 million, reaching another all-time high. What's especially exciting is the quality of these orders. Premium lens upgrades accounted for nearly 46% of glasses revenue. and revenue from those upgrades grew 58% year over year. That's a clear signal that our customers are increasingly choosing us for more personalized, higher-value products. We continue to see repeat glasses orders grow each quarter with returning customers now making up over fifty two thousand glasses deliveries this quarter an eighteen per cent increase over last year that kind of customer behavior through repeat purchases and premium upgrades is a powerful validation of the investments we have made in our optical lab digital experience and branding of kits during q two we saw continued improvement on margins Gross profit grew 45% year-over-year, reaching $18 million, with gross margins expanding 350 basis points year-over-year to 36.3%. We achieved this while absorbing record new customer growth, which typically carries lower AOV. We have now grown our two-year active customer base to over 991,000 people, increasing 13% year-over-year. That base is increasingly loyal, with repeat customers representing over 60% of Q2 revenue. Performance was driven by balanced strength across both new and returning customers. We welcomed over 111,000 new customers, a record for kids, and a 55% increase year-over-year. With this cohort, new customers contributed to over 39% of revenue. We've also been thoughtful about how we invest to build this customer base. Marketing spend increased to 15.2% of revenue in Q2, up from 13.4% last year. This new customer growth is not by chance, but by design. We're not thinking short-term. We are in the business of building lifetime customer relationships. In Q2, we strategically invested in acquiring high-quality, high-potential customers and guiding them into a long-term relationship with kids. That's the essence of our model, to light customers with their first experience and build lifetime value through customer service and product quality. Looking ahead to Q3, we expect continued momentum with revenue projections in the range of $52 million to $54 million and an adjusted EBITDA margin between 5% and 7%. Thank you again for your continued support. With that, I'd like to hand the call over to Joe, who will provide further details on our operational performance. Joe?