Nextleaf Reports Fiscal Year 2025 Financial Performance

Executive Summary

• Nextleaf Solutions reported FY 2025 net loss of $162,944, an 88.6% reduction versus the prior‑year loss of $1,435,991 and generated positive Adjusted EBITDA of $522,258.
• Gross revenue was $14.96 M (down from $16.57 M in FY 2024) with gross profit rising to $3.79 M, expanding gross margin to 25% (up from 23%).
• Operating cash flow turned positive at $208,805, and operating expenses were cut by 21% ($1.08 M reduction YoY).

Key Details

• Revenue & Profitability
• Gross Revenue: $14,955,459 (FY 2025) vs. $16,567,537 (FY 2024).
• Net Revenue: $11,264,354.
• Gross Profit: $3,793,401, up from $3,742,561 YoY.
• Gross Margin: 25% (up from 23%).

• Adjusted EBITDA: $522,258 (positive vs. a loss of $(677,280) in FY 2024).

• Expense Management

• Operating expenses decreased by 21%, a dollar reduction of $1,080,005 YoY.

• Cash Flow

• Operating cash flow: +$208,805 (previous year was a use of $(614,092)).

• Operational Highlights

• Launched 20+ new SKUs, bringing total portfolio to 45 SKUs by year‑end.
• Entered Québec market with Glacial Gold oils and white‑label extracts via strategic partnerships.

• Introduced the Yard recreational brand; expanded national assortment of high‑CBD vape formulations (1:1 and 3:1).

• Market Impact

• Temporary BC distribution disruption in Q4 FY 25 due to BCLDB labour action, offset by stable performance elsewhere.

• Strategic Outlook for FY 2026

• Pursue global export strategy with international resellers.
• Allocate capital to organically grown biomass for bulk distillate processing.
• Scale operations at the Nextleaf Distribution Facility.
• Add national sales agency to expand presence in Ontario, Manitoba, Saskatchewan and key accounts.
• Complete ERP integration for digital transformation.
• Grow Yard brand profitability and broaden listings nationwide.
• Increase market share of Glacial Gold SKUs and maintain category leadership.

Notable Quotes

• Sam Kassem, CFO: “Generating cash flow from operations remains a core priority… we will actively monitor liquidity and evaluate strategic financing options as needed to support growth and long‑term sustainability.”
• Emma Andrews, CEO: “Through the longevity of our core SKUs and consistent market performance over time, we have established a reputation for trustworthy quality… these foundational attributes support scalable brand growth and long‑term commercial expansion.”