The rise in revenue to C$42.6 million was driven by a 3.3% increase in direct-to-consumer sales, bolstered by stronger traffic across its retail channels. However, these gains were erased by non-recurring charges linked to a shift in distribution strategy. Roots incurred C$1.8 million in additional costs as it phases out warehouse assets ahead of a transition to Metro Supply Chain, a move expected to conclude by the end of the second quarter.

Simultaneously, the search for a potential buyer continues to weigh on the balance sheet. Since launching a formal review in March to explore a full sale or other value-maximizing options, the company has spent approximately C$600,000 on legal and consulting fees. Adjusted EBITDA loss also widened to C$7.4 million, reflecting the pressure of these dual operational and strategic headwinds.