Diversified Royalty (DIV) Q2 2026 earnings summary

Executive summary

• Revenue for Q2 2026 was $21.7 million, up 21.5% year-over-year; six-month revenue was $39.2 million, up 17.0% from 2025.

• Distributable cash for Q2 2026 rose 4.8% to $13.1 million; six-month distributable cash increased 7.4% to $25.1 million.

• Weighted average organic royalty growth slowed to 2.3% in Q2 2026 from 7.2% in Q2 2025.

• Net income for Q2 2026 was $3.1 million, down from $9.0 million in Q2 2025, mainly due to higher expenses and a $7.2 million impairment charge related to Sutton.

• Major acquisitions included Mr. Lube + Tires for $227.9 million and an incremental Cheba Hut royalty for US$7.2 million.

Financial highlights

• Adjusted royalty partner revenue was $19.5 million in Q2 2026, up 1.6% year-over-year.

• Combined contribution reached $21.7 million in Q2 2026, a 13.2% increase from Q2 2025.

• Payout ratio increased to 93.7% in Q2 2026, with dividends of $0.0711 per share, compared to 84.7% and $0.0625 per share in Q2 2025.

• Distributable cash per share was $0.0758 in Q2 2026, up from $0.0738 in Q2 2025.

Outlook and guidance

• Mr. Lube + Tires is expected to deliver $58.7 million in adjusted EBITDA contribution over the twelve months post-acquisition.

• Management intends to continue stable monthly dividends and pursue accretive royalty acquisitions.

• Anticipates entering into a new variable royalty arrangement with Sutton by end of Q3 2026.