Cannara Biotech (LOVE) investor relations material

Market position and growth

• Ranked as Canada's fastest-growing top-10 licensed producer, with presence in 8 out of 10 provinces and 94% of retail stores.

• Achieved #1 retail market share in Quebec and #6 nationally, with 3% of national retail listings.

• Delivered the strongest quarter-over-quarter growth in national retail sales among top 10 LPs, up 3% in Q1 FY2026.

• National retail penetration reached 3% in January 2026, with Quebec market share at 14.2%.

• Category-leading branded portfolio with multiple #1 product rankings in Canada.

Financial performance

• Q1 2026 gross revenue was $42.8M, up 19% year-over-year; total revenue reached $30.1M, up 20%.

• Gross profit before fair value adjustments grew 38% YoY to $13.5M, with a gross margin of 45%.

• Adjusted EBITDA rose 47% YoY to $8.8M, with a margin of 29%.

• Net income for Q1 2026 was $1.0M; operating cash flow was $8.0M, up 36% YoY.

• Free cash flow for Q1 2026 was $3.3M, with positive adjusted EBITDA since FY'21 and positive net income since FY'22.

Assets and production capacity

• Operates two Quebec-based mega facilities: Valleyfield (1M sq. ft., 24 grow rooms) and Farnham (605,000 sq. ft., 11 grow rooms).

• Current annualized production is 50,000 kg, with capacity to scale to 100,000 kg.

• Valleyfield expansion includes a $10M CAPEX for post-harvest processing, enabling activation of 12 additional grow zones.

• Farnham generates over $3.8M in annual rental revenues from unoccupied space.