Avant Brands (AVNT) Q3 2026 earnings summary

Executive summary

• Q3 2026 returned to net income of $0.2 million from a $1.9 million net loss in Q3 2025; Adjusted EBITDA rose to $1.3 million from $0.2 million.

• Recreational revenue grew 51% to $4.1 million, more than half of Q3 net revenue, while wholesale revenue declined in both export and domestic channels.

Financial highlights

• Q3 gross revenue was $9.0 million (-16% YoY) and net revenue was $7.3 million (-22%); gross profit rose to $2.5 million from $1.7 million.

• Q3 net income was $0.2 million versus a $1.9 million net loss; Adjusted EBITDA was $1.3 million versus $0.2 million, reflecting sales mix, stronger gross margins and lower operating expenses.

• 9M gross revenue was $26.6 million (-12% YoY), net revenue $22.2 million (-16%) and gross profit $2.8 million versus $3.1 million.

• 9M Adjusted EBITDA was negative $0.6 million versus positive $3.2 million, primarily due to lower net revenue and gross profit.

Outlook and guidance

• Management expects further Flowr retrofit benefits, including lower energy and HVAC costs and improved cultivation performance as post-retrofit crop cycles progress; Q3 harvest growth is an early result, not the full run-rate.

• Measurement and verification remains necessary for up to $2.0 million of incentive funding; EU-GMP certification depends on remediation and auditor review and is not assured.

• Priorities include Canadian branded recreational execution through BLK MKT and Tenzo, international medical export capability if EU-GMP certification is obtained, and disciplined capital allocation.