MTL Cannabis Corp. Reports First Quarter Results with $25.9 Million of Revenue and Announces Transformational Capital Projects

Executive Summary

• MTL Cannabis Corp. reported First Quarter 2025 financial results, highlighting $25.9 million in revenue and continued positive operating income and EBITDA, despite a year-over-year decline in profitability metrics.
• The Company announced a series of transformational capital projects aimed at expanding cultivation capacity, optimizing processing infrastructure, and transitioning medical fulfillment operations across its Canadian facilities.
• Key operational updates include the completion of LED lighting retrofits in Montreal and Louisville, and the commencement of major construction projects in Pointe-Claire, QC, and Pickering, ON, with completion expected by early 2027.

Key Details

• Revenue: $25,890,287 for Q1 FY2026, an increase of $48,023 compared to $25,842,264 in Q1 FY2025.
• Operating Income: $2,052,265 (down from $4,963,969 in Q1 FY2025).
• EBITDA: $3,447,895 (down from $6,527,812 in Q1 FY2025).
• Adjusted EBITDA: $2,995,799 (down from $5,034,889 in Q1 FY2025).
• Net Income (Loss): ($44,433) for Q1 FY2026, compared to $2,206,313 in Q1 FY2025.
• LED Lighting Retrofit: Completed for all cultivation rooms at Montreal and Louisville facilities; expected to reduce utility costs and increase yields.
• 815 Tecumseh Facility (Pointe-Claire, QC):
  • Retrofit and expansion underway to add four new cultivation rooms.
  • Capacity increasing from 9,000 kg/year to 11,000 kg/year.
  • Expected completion: March 2027.
• 4225 Transcanadienne Facility (Pointe-Claire, QC):
  • Received Health Canada processing license.
  • Will serve as the central hub for post-harvest, processing, packaging, and distribution for recreational, medical, and export markets.
  • Expected completion: March 2027.
• Medical Fulfillment Transition:
  • Moving operations from Pickering to Montreal (4225 Transcanadienne) during Q2 2026.
  • Current platform serves over 5,000 clients, including over 3,500 veterans.
  • Menu features over 450 SKUs from 38+ suppliers.
• Abba Medix Facility (Pickering, ON):
  • Complete shutdown and retrofit announced.
  • Installation of LED lighting technology.
  • Cultivation yield expansion from 2,500 kg/year to over 4,000 kg/year.
  • Expected completion: Early 2027.
• Non-IFRS Reconciliation (Q1 FY2026):
  • Finance Expense: $1,927,808.
  • Amortization & Depreciation: $1,379,496.
  • Share-Based Compensation: $145,323.
  • Fair Value Adjustment on Sale of Inventory: $1,566,677.
  • Fair Value Adjustment on Biological Assets: ($2,164,096).

Notable Quotes

• "We are incredibly proud of what we have been able to achieve over the past few years since completing the RTO transaction with Canada House Wellness and the subsequent turnaround and integration of the consolidated operations, allowing us to achieve industry leading results" — Michael Perron, CEO.
• "We are making significant investments into our operations in order to expand our production capabilities and realign internal operations to maximize our future growth potential, setting the Company up for the next chapter of growth. Now that we have our house in order with the support of a Schedule 1 financial institution, we are able to comfortably take on these transformational capital initiatives and set the company up for continued long term growth in the Canadian recreational, Canadian medical, and international export markets." — Michael Perron, CEO.