Core Insights - Diamond Estates Wines & Spirits Inc. reported financial results for Q3 2026, showing significant revenue growth and improved gross margins [1][2]. Financial Performance - Revenue for Q3 2026 was $8.2 million, an increase of $1.8 million from $6.4 million in Q3 2025 [17]. - Gross margin for Q3 2026 was $4.9 million, up from $3.7 million in Q3 2025, with a gross margin percentage of 59.8%, compared to 57.5% in the prior year [17]. - SG&A expenses rose to $4.3 million in Q3 2026 from $3.1 million in Q3 2025, primarily due to VQA support payments and increased advertising costs [17]. - Adjusted EBITDA increased to $0.7 million in Q3 2026 from $0.6 million in Q3 2025, despite a decrease in EBITDA to $0.7 million from $1.4 million in the same period [17]. - The company reported a net loss of $0.1 million in Q3 2026, down from a net income of $0.5 million in Q3 2025 [17]. Operational Highlights - The Winery division saw a sales increase of $1.9 million, driven by growth in grocery and convenience channels [17]. - The company completed one of its largest harvests in history, more than doubling the volume of grapes compared to 2024, and achieved its largest ice-wine harvest in recent years [6][7]. - Management is finalizing a three-year strategic plan aimed at continued growth and strengthening of the business [8]. Industry Context - The Ontario VQA wine industry is experiencing significant growth, with the retail channel expanding over 50% in the past year [9]. - Consumers are increasingly supporting Canadian-made products, which is positively impacting the company's performance [9].

Core Points - Diamond Estates Wines & Spirits Inc. has entered into a Seventh Amendment to its Second Amended and Restated Credit Agreement with Bank of Montreal, effective November 10, 2025 [1] - The company expresses gratitude to Bank of Montreal for its support during its financial turnaround, as indicated by its Fiscal 2024/25 year-end and Q1 results [2] - The company will release its Q2 results towards the end of November [2] Company Overview - Diamond Estates Wines & Spirits Inc. produces high-quality wines and ciders and acts as a sales agent for over 120 beverage alcohol brands across Canada [3] - The company operates four production facilities, three in Ontario and one in British Columbia, producing predominantly VQA wines under various well-known brand names [3] Product Portfolios - The wine portfolio includes renowned brands such as Fat Bastard, Gabriel Meffre, and Kaiken, among others from various countries [5] - The spirits portfolio features distinguished brands like Tag Vodka, Ginslinger Gin, and Barnburner Whisky, as well as international brands from Mexico, Scotland, and the UK [6] - The beer, cider, and ready-to-drink (RTD) portfolio includes products from Ontario and international brands from Belgium, the Netherlands, and Germany [7] Credit Facilities - A bulge amount credit facility of $3,600,000 has been established, maturing on the earlier of the cancellation request date or March 27, 2026 [9] - A limited recourse guarantee has been added, granted by Lassonde Industries Inc. in favor of BMO, not exceeding the outstanding Bulge Amount [9] - Interest rates have been amended to Prime Rate plus 2.65% during the Temporary Bulge Period and Prime Rate plus 2.40% at all other times [9]

Company Announcements - Diamond Estates Wines & Spirits Inc. has issued 248,683 deferred share units (DSUs) to non-executive directors at a deemed price of $0.19 per DSU, totaling $47,250 in deferred compensation [1] - The company has granted 600,000 share options to Basman Alias, the new Chief Financial Officer, at a strike price of $0.19 per share option, which are exercisable for five years and vest at 25% annually [2][3] Strategic Insights - The share option grants are indicative of the key role Basman Alias plays in executing Diamond Estates' strategic plan, emphasizing the alignment of management success with shareholder interests [3] Upcoming Events - The company encourages shareholders to vote in advance of the upcoming shareholder meeting on October 30, 2025, due to ongoing Canada Post service disruptions, with proxy votes required by October 28, 2025 [3] Company Overview - Diamond Estates is a producer of high-quality wines and ciders, operating four production facilities in Canada and representing over 120 beverage alcohol brands [4][5]