DAVIDsTEA Inc. — Cyborg Score 3/10

Challenged
Specialty Beverages - Tea Retail & Merchant

Strategic Profile

The company distributes through its e-commerce platform and Amazon Marketplace, as well as over 4,000 grocery stores and pharmacies in Canada and 170 in the United States, plus 18 company-owned stores across Canada. DAVIDsTEA is a specialty branded merchant offering proprietary tea blends and traditional single-origin teas.

Cyborg Score Rationale

In 2023, revenue was $60.64 million, a decrease of -26.96% compared to the previous year. Market cap is $17.068M with negative EPS of -0.5700 TTM. While showing recent operational improvement, the company faces structural headwinds and micro-cap valuation challenges.

Top Insights

  • Recent earnings acceleration: Company reported Q1 2025 EPS of $0.066, a positive swing from prior quarter losses
  • Revenue stabilization: After years of decline (2023 revenue $60.6M down from $83M in 2022), company showing signs of traction in recent quarters
  • Multi-channel distribution: Strong wholesale penetration with 4,000+ Canadian grocery/pharmacy partners provides revenue diversification
  • Founder milestone: Founder Herschel Segal passed in May 2025, with leadership transition to CEO Sarah Segal

Named Competitors

  • Teavana — Premium specialty tea brand with retail presence and e-commerce
  • Harney & Sons — Family-owned specialty tea blender and retailer
  • Pukka Herbs — Organic herbal and wellness tea brand

Recent Developments

  • (May 2025) Founder Herschel Segal passed away in Montreal; leadership continues under CEO Sarah Segal
  • (May 2025) Q1 FY2025 earnings reported with positive EPS of $0.066, beating consensus
  • (2024) Company appointed Sarah Segal as CEO and Chief Brand Officer to lead turnaround strategy

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