Cannara Biotech Delivers Record Fiscal 2025 Revenue and Profitability, Achieves First Year of Positive Retained Earnings

Executive Summary

• Cannara Biotech reported record fiscal 2025 results, delivering $107.3 M net revenue (31% YoY growth) and a net income of $13.1 M (103% YoY increase).
• Adjusted EBITDA reached $28.1 M (86% YoY rise), operating cash flow $20.0 M and free cash flow $13.7 M, marking the first year of positive retained earnings.
• National market share grew to 3.81% (32% YoY) with Quebec share climbing to 12.72% (53% YoY); a new vape‑category launch in Quebec secured 20% of SQDC‑approved SKUs.

Key Details

• Financial Highlights – Full Year FY 2025
• Net revenue (after excise taxes): $107.3 M vs. $82.2 M FY 2024.
• Gross profit before fair‑value adjustments: $44.5 M vs. $27.9 M FY 2024.
• Gross margin (pre‑fair‑value): 41% vs. 34% FY 2024.
• Operating income: $22.2 M vs. $10.1 M FY 2024.
• Net income: $13.1 M vs. $6.4 M FY 2024.
• Adjusted EBITDA: $28.1 M vs. $15.1 M FY 2024.
• Operating cash flow: $20.0 M vs. $10.7 M FY 2024.
• Free cash flow: $13.7 M vs. $3.2 M FY 2024.

• EPS (basic & diluted): $0.14 vs. $0.07 FY 2024.

• Quarter‑4 2025 Highlights

• Net revenue (post‑excise): $28.3 M (+21% QoQ).
• Gross profit before fair‑value: $11.8 M (+68%).
• Gross margin (pre‑fair‑value): 42% vs. 30% Q4 2024.
• Operating income: $5.3 M (+5%).
• Net income: $3.3 M (down from $5.8 M Q4 2024 due to a $2.0 M tax recovery in prior year).

• Adjusted EBITDA: $7.5 M (+102%).

• Operational Highlights

• Valleyfield facility added two grow zones (total 12), increasing canopy by 50,000 sq ft and annual capacity to 39,500 kg; total output rose 26% to 50,000 kg/yr.
• $10 M term loan from BMO approved to fund Phase 1 of a new processing center (expected completion FY 2026).

• Planned activation of three additional grow zones for FY 2027.

• Product & Market Expansion

• Q4 2025 product launches: multiple pre‑rolls, live‑resin vapes, and infused products across Tribal, Nugz, Orchid CBD brands.

• November 2025 Quebec vape cartridge launch: five SKUs (3 live resin, 2 solventless) representing 20% of SQDC’s authorized in‑store products.

• Shareholder & Governance Items

• Annual General Meeting scheduled for 2026‑01‑29, 11:00 a.m. EST (webcast).

• Share option grants: total 4,? M options granted during FY 2025 at exercise prices $1.00–$1.80; additional RSU settlements totalling $1.24 M reclassified to share capital.

• Capital Structure

• Cash balance as of Aug 31 2025: $14.36 M (up from $6.62 M YoY).

• Total assets: $168.65 M; total liabilities: $66.43 M; net assets: $102.22 M.

• Forward‑Looking Statements – Management reiterated confidence in continued growth, operational efficiency gains, and the upcoming processing expansion.

Notable Quotes

“Fiscal 2025 represents the strongest annual performance in Cannara Biotech’s history… we set new records for revenue, adjusted EBITDA, net income, operating cash flow and free cash flow.” – Zohar Krivorot, President & CEO

“Record financial results continue to demonstrate the strength of our brands, our focus on innovation and the high return opportunities within our portfolio.” – Nicholas Sosiak, CFO