Cizzle Brands (CZZL) Q3 2026 earnings summary

Executive summary

• Achieved record quarterly revenue of CAD 12.6 million in Q3 2026, a 253% year-over-year increase, driven by the acquisition of a manufacturing facility and the first full quarter post-acquisition of The CWENCH Hydration Factory.

• Delivered first positive adjusted EBITDA of CAD 300,000, compared to a loss of CAD 2.4 million in Q3 2025.

• Gross profit rose to CAD 5.4 million, with a blended gross margin of 43%.

• Retail expansion included new listings at Target (US), Walmart Canada, Loblaws, and Real Canadian Superstore, fueling growth and future pipeline opportunities.

• Vertically integrated manufacturing supports healthy margins and operational resilience.

Financial highlights

• Quarterly revenue reached CAD 12.6 million, up from CAD 3.6 million a year ago, driven by contract manufacturing and branded product growth.

• Manufacturing facility contributed CAD 9.3 million to revenue.

• Adjusted EBITDA improved to CAD 300,000 from a loss of CAD 2.4 million year-over-year.

• Gross profit increased to CAD 5.4 million, with gross margin at 43% versus 52% last year, reflecting a shift toward contract manufacturing.

• Year-to-date revenue reached CAD 21.0 million for the nine months ended April 30, 2026.

Outlook and guidance

• Expectation to reach CAD 35-40 million in EBITDA at the manufacturing facility by calendar 2027, supported by CAD 184 million in take-or-pay agreements.

• Targeting CAD 100 million in net sales on the brand side within three years.

• Management expects continued meaningful revenue and cash flow contribution from the Manufacturing Business as production scales.

• Focus remains on scaling retail footprint, improving gross margin, and driving repeat-purchase demand.

• New product capabilities, such as cold brew coffee, are being explored for additional growth.