DR. PHONE FIX REPORTS RECORD Q1 2026 RESULTS AND CONTINUED NATIONAL EXPANSION MOMENTUM

DR. PHONE FIX REPORTS RECORD Q1 2026 RESULTS AND CONTINUED NATIONAL EXPANSION MOMENTUM

Q1 Revenue Up 44% YoY; Same-Store Sales Up 29%; Adjusted EBITDA Turns Positive as Company Advances National Expansion Strategy

EDMONTON, AB, June 1, 2026 /CNW/ - Dr. Phone Fix Canada Corporation (TSXV: DPF) ("Dr. Phone Fix" or the "Company"), one of Canada's fastest-growing and award-winning consumer electronics repair and resale platforms, today reported financial results for the three months ended March 31, 2026, and provided an update on recent corporate developments. The Company operates a network of 44 corporately owned stores across five Canadian provinces.

Financial Results Summary (CAD)

^{(1) See Non-GAAP Financial Measure towards the end of this document.}

"Q1 reflected continued progress in the execution of our strategy with revenue increasing 44% year-over-year and comparable-store sales increasing 29%, even in what is typically our seasonally weakest quarter," said Piyush Sawhney, Founder and Chief Executive Officer of Dr. Phone Fix. "We also delivered positive Adjusted EBITDA, generated positive operating cash flow, and continued to improve execution across our national network while integrating recently acquired locations and advancing our OEM, insurance, supplier, repair and certified pre-owned device programs."

Mr. Sawhney continued, "We have spent the past year building the foundation for a national, carrier-neutral device lifecycle platform. Today, we have 44 corporately owned locations across five provinces, a growing pipeline of acquisition and greenfield opportunities, and a strategy focused on disciplined expansion and stronger unit-level economics through multiple revenue channels. Looking ahead, we are focused on disciplined expansion over the next 12-15 months, improving store productivity, integrating acquisitions into our centralized operating platform, and building long-term shareholder value through the continued growth of our national operating platform."

Q1 2026 Financial Highlights

• Revenue increased 44% to $3.16 million, compared to $2.20 million in Q1 2025. Sales from stores operating in both periods increased on average 29%, contributing approximately $0.7 million of incremental revenue, while stores not open or owned in Q1 2025 contributed approximately $0.3 million of additional revenue.
  
  
• Gross profit increased 34% to $1.62 million, compared to $1.21 million in Q1 2025. Gross margin was 51.3%, compared to 55.1% in Q1 2025, reflecting a greater mix of certified pre-owned device sales, which typically carry lower percentage margins than repair services.
  
  
• Operating expenses, excluding share-based compensation, increased by approximately $0.4 million compared to Q1 2025, primarily due to the expanded store network, including higher depreciation, and other operating costs associated with additional locations and increased operations.
  
  
• Adjusted EBITDA improved to positive $0.09 million, compared to negative $0.01 million in Q1 2025, reflecting higher gross profit and continued progress toward operating leverage.
  
  
• Cash generated from operating activities was $0.33 million, compared to cash used in operating activities of $0.12 million in Q1 2025. Cash flow from operating activities before changes in non-cash working capital improved to positive $0.06 million from negative $0.04 million in the prior-year period.
  
  
• Net loss improved on a reported basis to $1.17 million, compared to $2.41 million in Q1 2025. The improvement was primarily attributable to the absence of Q1 2025 listing and transaction expenses associated with the Company's public listing, partially offset by additional operating costs associated with the larger store base and non-cash share-based compensation.

Q1 2026 Accomplishments

• Continued execution of the Company's strategy to build a national, carrier-neutral device lifecycle management platform focused on mobile device repair, certified pre-owned device sales, refurbishment, accessories and related value-added services.
  
  
• Expanded and optimized the Company's national operating platform following the integration of the Geebo acquisition, further extending Dr. Phone Fix's footprint across five Canadian provinces.
  
  
• Publicly reported same-store sales growth of over 50% year-over-year across the Company's original 35-store platform during the January-February 2026 period, driven primarily by higher repair volumes, increasing store productivity and early contributions from insurance repair programs. For the full Q1 period, comparable-store sales increased on average 29%.
  
  
• Reported early productivity improvements following the Geebo integration, including January-February 2026 revenue of more than $175,000, approximately 12% growth compared with the prior-year period, a 40% increase in revenue per employee and an increase in average repair throughput to approximately seven repairs per day. Management also reported improved profitability across the Geebo operations during the same period.
  
  
• Recognized as a Double Gold Winner in the 2026 Stevie® Awards for Sales & Customer Service, reinforcing the Company's standardized operating model, customer service execution and sales performance across a growing national footprint.
  
  
• Presented to investors at the Emerging Growth Conference, providing an update on the Company's national growth strategy, acquisition activity, capital allocation priorities and long-term vision.

Subsequent to Quarter-End

• Named to the Financial Times list of "The Americas' Fastest Growing Companies" for the second consecutive year. The 2026 ranking recognized the top 300 companies across North and South America based on revenue growth between 2021 and 2024, with Dr. Phone Fix ranked #143 overall and one of only 43 Canadian companies included on the list.
  
  
• Announced a non-brokered private placement financing of convertible debenture units for aggregate gross proceeds of up to $2.5 million, with net proceeds intended to support growth initiatives, strategic acquisitions, store expansion and general working capital purposes.
  
  
• Entered into a definitive agreement to acquire the assets of Cell Phone Solutions, an established device repair business based in Saint John, New Brunswick, for a total purchase price of approximately $175,000, including inventory. The acquisition is expected to provide Dr. Phone Fix with an established revenue-generating location in New Brunswick – its sixth province and support the Company's continued Atlantic Canada expansion.
  
  
• Secured two additional retail leases in New Brunswick and Ontario, further supporting the Company's strategy of increasing regional density, entering underserved markets and combining disciplined acquisition activity with selective greenfield expansion.

About Dr. Phone Fix

Dr. Phone Fix is an award-winning, eco-friendly, and customer-centric leader in Canada's cell phone and electronics repair and certified pre-owned device industry. Founded in 2019, the Company now operates 44 corporately owned retail locations nationwide, delivering fast, reliable, and environmentally conscious repair services alongside a curated selection of certified pre-owned devices and premium accessories. Dr. Phone Fix maintains strong relationships with OEMs and certified suppliers, ensuring consistently high-quality standards across its national footprint. With a mission rooted in sustainability, transparency and exceptional customer service, Dr. Phone Fix continues to set the benchmark for device care and resale in Canada.

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

For further information:

Piyush Sawhney, CEO and Director
Email: invest@docphonefix.com
www.docphonefix.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, current and deferred income tax provisions and recoveries, share-based compensation, extraordinary, unusual or infrequent items, items related to investing decisions, items that are not related to core operations and are not indicative of operational performance, and 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, expected benefits of OEM, insurance and supplier relationships, 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 expected closing, timing, benefits and synergies of announced transactions and financings.

Forward-looking information is based on management's current expectations, assumptions and estimates as of the date of this news release and is 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. 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