LFL Releases Second Quarter Financial Results

Toronto, Ontario--(Newsfile Corp. - August 6, 2026) - Leon's Furniture Limited (TSX: LNF) ("LFL" or the "Company"), today announced financial results for the quarter ended June 30, 2026.

These comparisons are with Q2-2025 unless stated otherwise. * System-wide sales for the quarter were $756.2 million, a decrease of 2.0%. * Q2 Revenue was recorded at $631.2 million, a decrease of 2.0%, largely driven by a lower average unit price as overall retail delivered units were up on the quarter. * Opened 4 new franchise locations in the quarter. * Gross profit margin was 44.63%, a 19-basis points decline primarily due to unfavourable impact of foreign currency revaluations, partially offset by improved margin rate in the mattress category. * Net Income was $35.0 million compared to $31.8 million in the prior year. * Adjusted net income was $34.8 million compared to $39.4 million in the prior year. * On June 30, 2026, unrestricted liquidity was $560.1 million compared to $454.5 million in the prior year, comprised of cash, cash equivalents, debt and equity instruments and the undrawn revolving credit facility. Second Quarter - 4 Year Financial Performance of LFL