Diversified Royalty Corp. Announces Second Quarter 2026 Results


Certain statements contained in this news release may constitute “forward-looking information” or “financial outlook” within the meaning of applicable securities laws that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information and financial outlook. The use of any of the words “anticipate”, “continue”, “estimate”, “expect”, “intend”, “may”, “will”, ”project”, “should”, “believe”, “confident”, “plan” and “intend” and similar expressions are intended to identify forward-looking information and financial outlook, although not all forward-looking information and financial outlook contain these identifying words. Specifically, forward-looking information and financial outlook in this news release includes, but is not limited to, statements made in relation to: DIV looking forward to partnering with Mr. Lube + Tires management to continue its strong profit growth; Mr. Lube + Tires remaining on pace to deliver the previously disclosed estimate of $58.7 million in adjusted EBITDA contribution to DIV over the twelve months post-close of the Acquisition; DIV’s expectation that it will enter into the proposed Sutton Variable Royalty by the end of Q3 2026, subject to the finalization of legal documents and lender consent, and the estimated financial impacts thereof to DIV; the expected incremental royalty revenue from the addition of nine BarBurrito locations to the BarBurrito royalty pool on March 1, 2026; the expected incremental royalty revenue from the Incremental Cheba Hut Royalty; DIV’s intention to pay monthly dividends to shareholders; and DIV’s corporate objectives. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events, performance, or achievements of DIV to differ materially from those anticipated or implied by such forward-looking information and financial outlook. DIV believes that the expectations reflected in the forward-looking information and financial outlook included in this news release are reasonable but no assurance can be given that these expectations will prove to be correct. In particular, risks and uncertainties include: DIV’s royalty partners may not make their respective royalty payments to DIV, in whole or in part; current positive trends being experienced by certain of DIV’s royalty partners (and their respective franchisees) may not continue and may regress, and current negative trends experienced by certain of DIV’s royalty partners (including their respective franchisees) may continue and may regress; DIV’s, its royalty partners’ and Mr. Lube + Tires’ performance may not meet management’s expectations; DIV may not be able to make monthly dividend payments to the holders of its common shares; Sutton’s investment of the forgiven royalties may not achieve their intended effects; DIV may not enter into the proposed Sutton Variable Royalty on the terms, or in accordance with the timing, currently contemplated, or at all and may not be successful in obtaining lender consent for the Sutton Variable Royalty; Sutton may require further royalty relief beyond that contemplated by the current relief agreement and the Sutton Variable Royalty; the anticipated benefits of the Acquisition to DIV may be less than anticipated, may not occur on a timely basis or at all; Mr. Lube + Tires may not be successful in executing its business strategies and pursing its growth opportunities; Mr. Lube + Tires new store openings may not be consistent with budgets and projections; Mr. Lube + Tires’ franchisees may not continue to generate positive SSSG at estimated levels or at all; Mr. Lube + Tires may not generate adjusted EBITDA consistent with DIV’s estimates; dividends are not guaranteed and may be reduced, suspended or terminated at any time; and DIV may not achieve any of its corporate objectives. Given these uncertainties, readers are cautioned that forward-looking information and financial outlook included in this news release are not guarantees of future performance, and such forward-looking information and financial outlook should not be unduly relied upon. More information about the risks and uncertainties affecting DIV’s business and the businesses of its royalty partners can be found in the “Risk Factors” section of its Annual Information Form dated March 19, 2026 and in DIV’s management’s discussion and analysis for the three and six months ended June 30, 2026, copies of which are available under DIV’s profile on SEDAR+ at www.sedarplus.ca.



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