Purebread Brands Inc. Reports Q1 2026 Results
Executive Summary
- Purebread Brands Inc. reported Q1 2026 Adjusted EBITDA of $1.0 million, a 300% improvement year‑over‑year.
- Gross profit margin rose to 65% (up from 61% YoY) while revenue slipped 10% to $3.6 million due to the shutdown of several Coho Kitchen locations.
- Operating expenses were cut dramatically – down 45% versus Q4 2025 and 28% versus Q3 2025 – following cost‑reduction initiatives, a debt‑to‑equity conversion, and a 5‑for‑1 share consolidation.
Key Details
- Adjusted EBITDA: $1.0 million (up from a $(0.5) million loss in Q1 2025).
- Gross Profit Percentage: 65% vs. 61% in Q1 2025.
- Revenue: $3.6 million, down 10% YoY from $4.0 million (impact of Coho Kitchen closures).
- Operating Expenses: Decreased 45% versus Q4 2025 and 28% versus Q3 2025.
- Net Loss (Three months ended June 30, 2025): $(27,002) vs. $(1,905,756) in 2024.
- Amortization: $245,844 (2025) vs. $523,141 (2024).
- Accretion: $106,964 (2025) vs. $102,328 (2024).
- Interest Expense: $647,688 (2025) vs. $711,941 (2024).
- Share‑Based Compensation: $14,567 (2025) vs. $69,900 (2024).
Corporate Actions
* Completed a debt‑to‑equity conversion: issued 3,739,162 common shares and 1,869,561 warrants at $0.25 per unit to settle $3,559,556 of outstanding debt.
* Implemented a 5‑for‑1 common share consolidation to improve capital structure.
Operational Highlights * Closed two Coho Commissary locations (Pandora Street and Gibsons) on September 5 2025 and shut the East Hastings and Victoria Public Market sites, reallocating resources toward Purebread Bakery expansion.
Notable Quotes
“These results underscore the significant progress we've made in aligning our business model with our core strengths… we achieved meaningful cost reductions and delivered our strongest quarterly adjusted EBITDA performance to date.” – Amrit Maharaj, Interim CEO
All forward‑looking statements are subject to risks and uncertainties detailed in the company’s MD&A and SEDAR filings.