DR. PHONE FIX ANNOUNCES POSITIVE Q2 2025 FINANCIAL RESULTS AND NEW AND EXPANDING STRATEGIC PARTNERSHIPS

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EDMONTON, AB, Aug. 28, 2025 /CNW/ - Dr. Phone Fix Canada Corporation (TSXV: DPF.V) ("Dr. Phone Fix" or the "Company") is pleased to announce positive financial results for the three and six months ended June 30, 2025. The Company continues its growth momentum with revenue up 13% from 2024, gross margin sitting at 55%, compared to 51.9% in 2024, and Adjusted EBITDA up 506% from 2024. In addition, Dr. Phone Fix is announcing that it has entered into a new national repair agreement with Likewize Corp. ("Likewize") and an expanded strategic partnership with Assurant, Inc. ("Assurant").

"Q2 showcased healthy top-line growth, margin strength and a return to positive Adjusted EBITDA, while we advanced national partnerships that expand our reach and credibility with insurers and OEM programs," said Piyush Sawhney, Chief Executive Officer of Dr. Phone Fix. "We're focused on disciplined execution, growing same-store sales, scaling our certified pre-owned sector, leveraging partnerships with insurance companies and OEM's to drive durable, profitable growth, and delivering consistent, reliable service that keeps customers in our ecosystem. For the second half of 2025, we expect gross margin to remain strong as procurement scale, CPO mix, and insurer/OEM program volumes increase. Combined with ongoing cost discipline, we also expect Adjusted EBITDA to improve in the second half of 2025."

Mr. Sawhney continued, by stating "looking ahead, our growth playbook combines measured new store openings with a disciplined M&A strategy to accelerate scale. Our strategy is to target high-quality operators in markets where we lack coverage today, prioritizing cultural fit and strong unit economics. Post-acquisitions, we plan to drive additional value through centralized procurement, inventory and refurbishment capabilities, insurance and OEM program access, shared marketing, and our proven operating playbook. Taken together, we believe this approach will expand our footprint efficiently, deepen our national coverage, and enhance cash generation, at the unit level, over time."

SUMMARY OF QUARTERLY RESULTS

The following table sets forth unaudited (2025) and audited (2024) financial information comparing the three and six-month periods ended June 2025 to the three and six-month periods ended June 2024.

Financial Results Summary (CAD)

	Three Months Ended June 30, 2025 ($000)	Three Months Ended June 30, 2024 ($000)	Variance (%)	Six Months Ended June 30, 2025 ($000)	Six Months Ended June 30, 2024 ($000)	Variance (%)
Revenue	2,857	2,525	+13 %	5,054	4,712	+7 %
Gross Profit	1,570	1,310	+20 %	2,781	2,478	+12 %
Gross Margin	55.0 %	51.9 %	+3.1 %	55.0 %	52.6 %	+2.4 %
Operating Expenses (SG&A)	2,376	1,893	+26 %	4,130	3,722	+11 %
Adjusted EBITDA^(1)	280	(69)	+506 %	282	(222)	+227 %
Cash & Equivalents	761	346	120 %	761	346	120 %

(1)	See "Non-GAAP Financial Measures" towards the end of this document.

Q2 2025 Financial Highlights

Revenue increased ~13% to $2.86 million, compared to $2.53 million in Q2 2024, driven by growth in existing stores.

Gross profit increased ~20% to $1.57 million, compared to $1.31 million in Q2 2024, as gross margin expanded to 55.0% from 51.9%, in that same period, on improved purchasing power and supplier partnerships. Gross margins are expected to remain strong in the second half of the year as partnerships and insurer programs scale.

Operating expenses increased ~26% to $2.38 million, compared to $1.89 million in Q2 2024, reflecting $0.51 million of non-cash share-based compensation, partly offset by lower salaries and benefits.

Adjusted EBITDA improved by ~506% to $0.28 million, compared to a loss of $0.07 million in Q2 2024; reflecting higher gross profit and expense discipline.

Cash ended at $0.76 million as of June 30, 2025, up approximately $0.5 million from June 30, 2024, supported by the Company's March 2025 private placement.

Year-to-Date Financial Highlights

Revenue increased ~7% to $5.05 million, compared to $4.71 million in H1 2024, with approximately 6% of the growth contributed from existing stores and 1% from a new store contribution.

Gross profit increased ~12% to $2.78 million, compared to $2.48 million in H1 2024, producing a 55.0% gross margin vs. 52.6% last year. These levels are expected to be sustained into the second half as scale benefits continue.

Operating expenses increased ~12% to $4.13 million, compared to $3.72 million in H1 2024. Excluding $0.51 million of share-based compensation, operating expenses decreased by approximately 3% year over year.

Adjusted EBITDA improved by ~227% to $0.28 million, compared to a loss of $0.22 million in H1 2024, after adding back $1.59 million of non-recurring listing and transaction expenses recognized in Q1 2025.

Q2 2025 Accomplishments

In June 2025, Dr. Phone Fix entered into a national repair agreement with Likewize, enabling insured Canadians to access fast in-store repairs across our network.

Likewize is a corporation founded in 1997 that operates in over 30 countries, that offers insurance, warranty, repair, trade-in, recycling, and tech support to telcos, banks, carriers and retailers on smartphones, tablets, laptops and connected devices in the home.

Subsequent to Quarter-End

In July 2025, Dr. Phone Fix expanded its strategic partnership with Assurant to accelerate certified pre-owned (CPO) device sales nationwide. This deeper integration strengthens Dr. Phone Fix's supply chain, broadens product selection, speeds up inventory turnover, and positions Dr. Phone Fix to capture one of the fastest-growing segments of the device market.

Sustainability leadership: the Company was recognized as Canada's "Sustainable Business of the Year." - an award presented by Google.

Non-GAAP Financial Measures

This press release contains various specified financial measures that are non-GAAP financial measures and do not have standardized meanings as prescribed by International Financial Reporting Standards ("IFRS"). These reported amounts and their underlying calculations are not necessarily comparable or calculated in an identical manner to a similarly titled measure of other companies issuers where similar terminology is used. Readers are cautioned that such financial measures should not be construed as alternatives to or more meaningful than the most directly comparable GAAP IFRS measures with respect to as indicators evaluating of the Company's performance. These measures have been described and presented in this press release in order to provide shareholders and potential investors with additional information regarding the Company's liquidity and its ability to generate funds to finance its operations and should not be considered in isolation.

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:

(all dollar amounts in 000's)	Three Months Ended June 30, 2025	Three Months Ended June 30, 2024	Six Months Ended June 30, 2025	Six Months Ended June 30, 2024
Net loss	(1,086)	(937)	(3,497)	(1,901)
Add (subtract):
Interest expense	282	357	568	713
Income tax expense (recovery)	1	1	(2)	(9)
Depreciation	523	514	1,046	1,016
Share-based compensation	510	-	511	-
Listing and Transaction expenses	2	-	1,594	-
Fair value adjustments	-	(4)	-	(7)
Government assistance income	-	-	-	(40)
Interest included in operating income	48	-	62	6
Adjusted EBITDA	280	(69)	282	(222)

Adjusted EBITDA is defined by the Company as a financial measure equal to net income (loss) before finance costs, depreciation and amortization, loss (gain) on property and equipment, impairment, current and deferred income tax provisions and recoveries. Adjusted EBITDA is compared to net income (loss), the closest comparable IFRS measure. To arrive at Adjusted EBITDA, the following items are excluded from net loss as follows:

(1) Interest expense is added back as it is related to financing decisions;
(2) Income tax expense (recovery) is added back as it is reflective of taxation jurisdiction or entity-specific tax planning, not related to core operational performance;
(3) Depreciation and amortization, as they are non-cash charges and not indicative of operational performance;
(4) Other income (expenses) as follows:
	a. Items related to investing decisions;
		i. Gain (loss) on disposal of assets;
	b. Items that are not related to core operations and are not indicative of operational performance:
		i.  Interest income; and
		ii. Impairment losses;
(5) Share-based compensation, as it is a non-cash expense;
(6) Extraordinary, unusual or infrequent items (including Listing and Transaction expenses);
(7) Amounts resulting from changes in accounting policies or principles; and
(8) Interest on lines of credit and other interest included in operating income.

About Dr. Phone Fix

Dr. Phone Fix is an award-winning, eco-friendly, customer-centric growth leader in Canada's cell phone and electronics repair and pre-owned resale industry. Founded in 2019, Dr. Phone Fix operates a nationwide network of 35 corporately owned cell phone and electronics repair stores across four Canadian provinces. In addition to its repair services, Dr. Phone Fix sells certified pre-owned devices and a wide selection of accessories. Dr. Phone Fix has well-established networks to acquire and resell a wide variety of used and refurbished electronic devices from certified vendors. Dr. Phone Fix was recently named to the Financial Times Americas' Fastest Growing Companies 2025 list.

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

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.

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" and similar references to future periods. Examples of forward-looking information include, among others, the future plans of the Company and the future financial performance of the Company. Although the Company believes that, in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate, the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, the risks that the future plans and future financial performance of the Company may differ from those that currently are contemplated. The forward-looking statements contained in this news release are made as of the date hereof, and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, except as required by law.

Readers are cautioned that the foregoing lists of factors are not exhaustive. Additional information on these and other factors that could affect our operations or financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR+ website (www.sedarplus.ca).

These forward-looking statements are made as of the date of this press release and we disclaim any intent or obligation to publicly update any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
All reference to $ (funds) are in Canadian dollars.

SOURCE Dr. Phone Fix

For further information: Piyush Sawhney, CEO and Director, Email: [email protected], Telephone: [phone]