Star Metro - RUM Reports Annual Financial Results for December 31, 2025

KEY OPERATING AND FINANCIAL HIGHLIGHTS

Sales for the three and twelve months ended December 31, 2025, reflect solid performance across the Company's existing store network. Total sales were partially offset by the sale and closure of two stores during the first quarter of 2025, which reduced the Company's store count from 24 to 22. The performance of continuing locations underscores the strength of the Company's retail operations and the effectiveness of its customer engagement strategies.

Gross margin percent improved for both the three and twelve month periods ended December 31, 2025, compared to the same periods in the prior year. This improvement was driven by disciplined inventory management and the strategic alignment of the Company's purchasing approach with limited-time offers available on inventory, as well as targeted promotional initiatives.

Adjusted EBITDA for the three and twelve months ended December 31, 2025, was higher than the same periods in 2024, reflecting increased net comprehensive income driven by stronger gross margins and lower operating and administrative expenses. Operating and administrative expenses decreased year over year for both reporting periods, primarily due to cost savings realized from the store closures, as well as disciplined management of administrative expenditures.

Rocky Mountain remains focused on operational performance and financial flexibility, optimizing its cost structure, and prioritizing investments in product mix, pricing, and customer engagement to deliver sustained long-term value.

Detailed information in the form of the Company's annual audited consolidated financial statements and Management Discussion and Analysis are available under the Company's profile on SEDAR+ at www.sedarplus.com and also on the Company's website at www.ruminvestor.com. After accessing the website, please choose the "Investor Relations" tab to view Annual Reports.

About Rocky Mountain

Rocky Mountain is a public company whose shares are traded on the TSX Venture Exchange (TSX-V: RUM). Rocky Mountain is the parent to a wholly owned subsidiary, Andersons Liquor Inc. headquartered in Edmonton, Alberta, which owns and operates 22 private liquor stores in that province.

Notes:

1. Calculation of Gross margin percent and Adjusted EBITDA are described under the heading "Non-GAAP Measures" below.

NON-GAAP MEASURES

Adjusted EBITDA and Gross margin percent are not measures recognized by IFRS Accounting Standards and do not have a standardized meaning prescribed by IFRS Accounting Standards.

Investors are cautioned that these measures should not replace net comprehensive income (loss), as determined in accordance with IFRS Accounting Standards, as an indicator of the Company's performance, of its cash flows from operating, investing and financing activities or as a measure of its liquidity and cash flows.

Furthermore, the Company's method of calculating these measures may differ from the methods used by other issuers. Therefore, the Company's calculation of these measures may not be comparable to similar measures presented by other issuers.

The Company has these measures in place as they provide information to investors, analysts, and others to aid in understanding and evaluating the Company's operating results in a similar manner to its management team.

Definitions

Adjusted EBITDA is defined as Income from operations before depreciation and other from the annual audited consolidated statements of comprehensive income (loss) less actual lease payments made and adjusting for other income related to operations. Adjusted EBITDA provides management with a clearer view of the Company's operating profitability by focusing on the results of core business activities, excluding the impact of financing and non-cash charges, and other items not directly related to operations.

Gross margin percent under "Operating Results" is calculated by dividing sales less cost of sales by total sales. This metric allows management to assess how effectively the Company generates revenue relative to the cost of goods purchased.

Forward-Looking Statements

This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward-looking statements or information. Forward-looking statements and information are often, but not always, identified by the use of words such as "appear", "seek", "anticipate", "plan", "continue", "estimate", "approximate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe", "would" and similar expressions.

Forward-looking statements and information are provided for the purpose of providing information about the current expectations and plans of management of the Company relating to the future. Readers are cautioned that reliance on such statements and information may not be appropriate for other purposes, such as investment decisions. In particular, results achieved in 2025 and previous periods might not be a certain indication of future performance, which is subject to other risks, including but not limited to changes in operational policies, changes in management, changes in strategic focus, market conditions and customer preferences and third party suppliers. Since forward-looking statements and information address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks, the risks that these events may not materialize as well as those additional factors discussed in the section entitled "Risk Factors" in RUM's Management Discussion and Analysis, which can be obtained at www.sedarplus.com. If they do materialize, there remains a risk of non-execution for any reason. Accordingly, readers should not place undue reliance on the forward-looking statements, timelines and information contained in this news release.

The forward-looking statements and information contained in this news release are made as of the date hereof, and no undertaking is given to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws or the TSX-V. This cautionary statement expressly qualifies the forward-looking statements or information contained in this news release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.

For further information:

SOURCE: Rocky Mountain Liquor Inc.

View the original press release on ACCESS Newswire

F.Tremblay--SMC