Cannara Biotech (LOVE) investor relations material

Executive summary

• Achieved record net revenues of $107.3 million, adjusted EBITDA of $28.1 million, and net income of $13.1 million for Fiscal 2025, marking the first year of positive retained earnings.

• National market share rose to 3.81% in Fiscal 2025, up 32% year-over-year, with Quebec market share increasing over 53% to 12.72%.

• Expanded production capacity by activating two additional grow zones, reaching 12 in total and increasing annual output to 50,000 kg, achieving the Fiscal 2026 target a year early.

• Launched new products and entered Quebec's vape cartridge category with 20% of accepted SKUs.

Financial highlights

• Gross cannabis revenue before excise taxes increased 35% to $148.6 million year-over-year.

• Net revenue after excise taxes rose 31% to $107.3 million; gross profit before fair value adjustments increased 60% to $44.5 million.

• Gross margin before fair value adjustments improved to 41% from 34% year-over-year.

• Operating income more than doubled to $22.2 million; net income increased 103% to $13.1 million.

• Adjusted EBITDA grew 86% to $28.1 million; free cash flow increased to $13.7 million from $3.2 million.

Outlook and guidance

• Focus on successful execution of the November vape category launch in Quebec and post-processing expansion at Valleyfield.

• Plans to operationalize 12 additional grow rooms at Valleyfield, potentially doubling cultivation capacity over four years.

• Fiscal 2026 capital investment strategy prioritizes a new processing center, funded by a $10 million BMO term loan.