Cannara Biotech (LOVE) investor relations material

Executive summary

• Gross cannabis revenue rose 16% year-over-year to CAD 44.1 million, with net revenue at CAD 31.8 million and adjusted EBITDA up 11% to CAD 8.5 million, maintaining profitability with net income of CAD 4.8 million and operating cash flow of CAD 5.7 million.

• Ranked as a top-10 licensed producer in Canada, holding #1 market share in Quebec and #8 nationally, with expanded national retail presence in 8 out of 10 provinces and 94% of retail stores.

• Expanded distribution to over 49,000 points and increased annualized production capacity to over 58,000 kg, with plans to reach 75,000 kg by fiscal 2027.

• Achieved 21 consecutive quarters of positive adjusted EBITDA and 15 consecutive quarters of positive operating cash flow.

• Advanced strategic priorities through the acquisition of Medican Organic, exclusive rights to Blue River's Ampersand technology, and a CAD 21 million international supply deal with Curaleaf.

Financial highlights

• Gross cannabis revenue before excise tax reached CAD 44.1 million, up 16% year-over-year; net revenue increased to CAD 31.8 million.

• Gross profit before fair value adjustments was CAD 13.4 million (42% margin); operating income was CAD 7.4 million; net income was CAD 4.8 million, EPS at CAD 0.05.

• Adjusted EBITDA margin was 27%; free cash flow was CAD 1.3 million, down from CAD 11.7 million last year due to higher capex.

• Operating cash flow for Q3 2026 was CAD 5.7 million; working capital at CAD 65.1 million as of May 31, 2026.

• Shareholders' equity increased to CAD 125.8 million.

Outlook and guidance

• Four additional grow zones to be activated by end of fiscal 2027, targeting annual production capacity of 75,000 kg, one year ahead of plan.

• EU GMP certification for the Valleyfield processing center targeted, with construction to finish by December and certification process to start late 2026.

• Curaleaf supply agreement expected to generate up to CAD 21 million over two years, starting August 2026.

• $30 million CAPEX plan over three years to support production growth, with demand-led, phased facility activation and targeted payback within 12 months per room.

• Anticipates launch of Ampersand live rosin products and further international commercialization opportunities.