Delivra Health Brands Reports Financial Results for First Quarter of Fiscal 2026 Highlighting Continued Growth of Dream Water (R) and LivRelief(TM)

Executive Summary

• Delivra Health Brands Inc. reported Q1 2026 net revenue of C$3.207 M, a modest 1% year‑over‑year increase driven by an 8% rise in Dream Water® sales and 9% growth in LivRelief™ non‑infused sales.
• Adjusted EBITDA turned positive at C$56 K, up from C$16 K in the prior year, reflecting higher sales volume and lower sales & marketing expenses despite a decline in gross profit margin to 47%.
• Net loss narrowed to C$91 K (–C$0.003 per share) from C$478 K a year earlier; operating cash flow remained negative but improved to –C$277 K.

Key Details

• Revenue: C$3,207 K vs. C$3,163 K YoY (+1%).
• Dream Water® sales ↑ C$213 K (+8%).
• LivRelief™ non‑infused sales ↑ C$26 K (+9%).
• Licensed LivRelief™ Infused sales ↓ C$195 K (–89%) due to transition to a new distribution partner.
• Gross Profit: C$1,501 K; gross margin fell to 47% from 51% YoY, attributed to higher sales fees and product mix shift.
• Operating Expenses (excl. non‑cash): C$1,447 K vs. C$1,607 K YoY (–10%).
• General & administration ↑ C$83 K.
• Sales & marketing ↓ C$243 K after major 2024 campaigns.
• Adjusted EBITDA (non‑IFRS): C$56 K (positive) vs. C$16 K YoY (+250%).
• Net Income (Loss): –C$91 K vs. –C$478 K YoY; loss per share reduced to –C$0.003 from –C$0.02.
• Cash Flow: Net cash used in operations –C$277 K vs. –C$354 K YoY.
• Management Outlook: CEO Gord Davey expects a relaunch of the licensed LivRelief™ Infused line in Jan 2026 and plans new product launches with strategic retail partners in H2 2026 to deepen market coverage.

Notable Quotes

“Our first quarter results reflect the continued strength of our core business… While we experienced a temporary reduction in our licensed LivRelief™ Infused business… we remain confident this segment will return to growth in the second half of the fiscal year.” – Gord Davey, President & CEO

Materiality Assessment: Material – Positive (financial results materially improve versus prior year and include forward‑looking guidance).