Cannara Reports Q1 Fiscal 2026 Results, Delivers New Record Financial Results, Extends Market Share Gains and Advances Disciplined Expansion Strategy

Executive Summary

• Cannara Biotech reported Q1 2026 total revenues of $30.1 M, gross profit before fair‑value adjustments of $13.5 M (45% margin) and Adjusted EBITDA of $8.8 M, reflecting strong top‑line growth and improved profitability.
• National retail market share rose to an estimated 4.1% in Q1 2026 (up from 3.8% in Q4 2025), with Quebec ranking #1 after a successful vape launch.
• The Valleyfield processing centre remains on budget and is slated for completion by fiscal‑year‑end 2026; three additional grow zones are being fit‑out for activation at the start of FY 2027.

Key Details

• Financial Highlights (Q1 2026 vs Q1 2025):
• Total revenues, net of excise taxes: $30.1 M ↑ 20% ($5.0 M).
• Gross profit before fair‑value adjustments: $13.5 M ↑ 38% (up $3.7 M).
• Gross profit margin: 45% vs 39% YoY.
• Adjusted EBITDA: $8.8 M ↑ 47% (up $2.8 M).
• Operating cash flow: $8.0 M vs $5.8 M YoY.
• Free cash flow: $3.3 M vs $4.6 M YoY (down due to Valleyfield capex).

• Net income: $1.0 M vs $2.3 M YoY (decline from fair‑value adjustments and share‑based compensation).

• Quarter‑over‑Quarter Highlights (Q1 2026 vs Q4 2025):

• Total net revenues ↑ 6% to $30.1 M.
• Gross profit before fair‑value adjustments ↑ 14% to $13.5 M.
• Adjusted EBITDA ↑ $1.4 M to $8.8 M.

• Operating cash flow ↑ from $2.8 M to $8.0 M.

• Operational Highlights:

• National retail market share: 4.1% (Q1 2026). Provincial shares – Quebec 13.5%, Ontario 3.1%, Alberta 2.5%.
• Valleyfield processing centre on‑budget, target completion FY 2026; half of its 24‑zone capacity currently active.
• Three additional grow zones to be cultivation‑ready for FY 2027.

• New product launches: Tribal ceramic‑tip prerolls, Tribal extracts (Neon Sunshine Supernova, Trifecta), Porto Leche live‑resin vape, Nugz El Guapo cured resin vape, five Quebec‑approved vape cartridges (live‑resin & solventless).

• Capital Transactions:

• Granted 44,600 employee/board share options at $1.80 exercise price (1‑year vesting, 7‑year expiry).
• Cancelled and re‑issued 544,600 previously granted options to correct issuance limit breach – no net change in outstanding options.

• Issued 90,000 common shares for vested RSUs; performance‑based RSU awards resulted in settlement of 781,250 common shares; accelerated vesting of 15,000 RSUs.

• Governance Event:

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

• Earnings Webcast:

• Hosted by CEO Zohar Krivorot and CFO Nicholas Sosiak on 2026‑01‑26, 11:00 a.m. EST; live stream available on company website.

Notable Quotes

“Our continued market share expansion in Q1 2026 reflects the strength of our brands and our disciplined approach to growth,” – Zohar Krivorot, Founder & CEO.

“Gross cannabis revenues increased 20%, gross profit rose 38% and adjusted EBITDA grew 47% versus a year ago, underscoring the effectiveness of our operating model,” – Nicholas Sosiak, CFO.