Delivra Health Brands Inc. (TSX-V:DHB, OTCQB:DHBUF, FRA:3F0) said it is encouraged by the strength of its core business fundamentals despite reporting lower revenue and wider adjusted losses in its second quarter.
The Vancouver-based consumer health group posted net revenue of $2.433 million for the three months to 31 December 2025, down 12% from $2.754 million a year earlier.
For the six months to 31 December 2025, revenue declined 5% to $5.640 million compared with $5.917 million in the same period last year.
The company reported year-to-date e-commerce sales growth of 26% for Dream Water and 28% for LivRelief, which it said reflected strong consumer engagement and repeat purchasing behaviour.
This online growth was offset by a 4% decline in Dream Water retail sales and a 29% fall in LivRelief retail sales compared with the prior year period, alongside changes to its licensed LivRelief Infused distribution channel.
Gross profit in the second quarter fell to $972,000 from $1.294 million, while the gross margin narrowed to 40% from 47%, reflecting lower revenue, higher product costs and a different product and customer mix.
Adjusted EBITDA, a non-IFRS measure, widened to a loss of $369,000 in the quarter compared with a loss of $194,000 a year earlier.
For the first half, gross profit declined to $2.473 million from $2.891 million, with margin easing to 44% from 49%.
Adjusted EBITDA for the six-month period was a loss of $313,000 compared with a loss of $176,000 in the prior year.
Operating expenses excluding non-cash items fell 10% in both the quarter and the half year, primarily due to lower marketing spend following major campaigns launched in November 2024, partly offset by higher general and administrative costs.
Net loss from continuing operations narrowed to $411,000 in the second quarter from $812,000 a year earlier, and to $502,000 for the first half from $1.288 million.
Gord Davey, president and chief executive, said: “While our results this quarter reflect temporary timing variability in certain retail markets, we are encouraged by the strength of our core business fundamentals.”
He added that management is focused on stabilising retail ordering patterns, reigniting growth in licensed markets and expanding higher-margin direct-to-consumer and US retail channels in the second half of fiscal 2026.