Cannara Biotech (LOVE) investor relations material

Executive summary

• Achieved CAD 27.2 million in Q2 2026 revenue, 20 consecutive quarters of positive adjusted EBITDA, and 14 consecutive quarters of positive operating cash flow.

• National retail market share rose to 4.4% in Q2 2026, with #1 licensed producer status and 14.3% retail share in Quebec.

• Outperformed a flat Canadian cannabis retail market, driven by premium product offerings, innovation, and new launches in infused pre-rolls and vape categories.

• Industry recognition for product quality, including awards for pre-roll and concentrate categories.

Financial highlights

• Gross cannabis revenues before excise taxes rose to CAD 37.8 million, up 3% year-over-year, with total revenues up 2% to CAD 27.2 million.

• Gross profit before fair value adjustments increased 7% year-over-year to CAD 11.6 million, with margins expanding to 43%.

• Operating income was CAD 3.3 million, down from CAD 5.9 million last year due to strategic investments and non-cash share-based compensation.

• Adjusted EBITDA was CAD 6 million (22% margin), compared to CAD 7.1 million prior year; net income was CAD 1.7 million, down from CAD 3.3 million.

• Operating cash flow improved to CAD 2.9 million from -CAD 2.6 million; free cash flow nearly break-even at -CAD 0.3 million despite higher capex.

Outlook and guidance

• Expect continued market share gains and revenue growth, supported by new product launches, capacity expansion, and ongoing construction at Valleyfield.

• Anticipate Q3 and Q4 to be strongest quarters due to seasonal demand patterns.

• Preparing for international expansion with EU GMP-certified processing facility targeting completion by December 2026.

• Plans to further expand the Flavour Bomb platform and introduce new genetics in Fiscal 2027.