BIG ROCK BREWERY INC. ANNOUNCES 2026 FIRST QUARTER RESULTS

Big Rock Brewery reported Q1 2026 results marked by a sharp slide in profitability. Net revenue was flat at $10.1 million, but total sales volumes tumbled 14.9 % year‑on‑year to 58,138 hl. The bulk of the decline came from the contract (co‑packing) segment, where volumes fell 22.8 %. Wholesale volumes also slipped 6 %. Higher cost of sales pushed the gross margin lower, driving an operating loss of $1.0 million – a swing from a small operating profit of $0.1 million in Q1 2025. Adjusted EBITDA dropped from positive $0.7 million to negative $0.3 million, and the net loss ballooned to $1.78 million, or $0.07 per share, versus just $0.05 million a year earlier. CEO David Kinder characterized the quarter as seasonally slow and said the company is now focusing on new product launches for spring and summer.

The Q1 2026 figures represent a genuine step backward after the strong recovery seen through fiscal 2025. In the preceding full‑year release (March 30), Big Rock had reported a 35 % jump in annual volumes, a near‑breakeven year (net loss of only $0.9 million), and a positive EBITDA turnaround. That momentum abruptly reversed in the first quarter. While a seasonal Q1 slowdown is typical, the magnitude of the year‑on‑year deterioration is substantial. Net revenue held flat only because of price/mix effects; underlying volumes dropped sharply, and the loss‑per‑share widened to $0.07 from virtually zero. The contract business, which had been a growth driver (+73 % in FY2025), suddenly contracted by 22.8 %, raising questions about customer retention and the stickiness of those contracts. At a market cap around $16 million, a $1.78 million single‑quarter loss is highly material and erodes the thin equity cushion. The transcript provided in the context is for Broadridge, not Big Rock, and has no relevance.

Big Rock Brewery Inc. is a craft brewer based in Alberta, Canada, with operations that include its own branded beers (wholesale) and contract brewing for other producers. The company has been working on a brand and portfolio refresh, emphasizing innovation and co‑creation with strategic partners. Its flagship initiative is a multi‑year strategic plan aimed at returning to consistent profitability, which delivered promising full‑year 2025 results but stumbled badly in early 2026.