MustGrow Biologics (MGRO) Q1 2026 earnings summary

Executive summary

• Q1 2026 marked the first quarter of TerraSante sales, reaching CAD 980,000 (or $0.1 million), compared to zero in Q1 2025.

• Gross margin improved to 23.6% from 19.5% year-over-year.

• Net loss, including discontinued operations, was CAD 1.3 million, narrowed from CAD 1.6 million in Q1 2025.

• NexusBioAg division was shut down in April 2026 to focus on proprietary products, with operations presented as discontinued.

• Focused on scaling TerraSante production capacity to meet growing U.S. demand, with repeat orders and expansion into new states.

Financial highlights

• Q1 2026 TerraSante sales: CAD 980,000; gross profit: CAD 23,000.

• Expenses (excluding NexusBioAg/continuing operations): CAD 900,000, down 27% year-over-year.

• Cash position as of March 31, 2026: CAD 420,000; working capital: CAD 1.5 million.

• 2025 saw 377% sales growth and 500-600% increase in purchase orders year-over-year.

• Approximately 63.0 million common shares issued and outstanding, with 76.7 million fully diluted.

Outlook and guidance

• Second half of 2026 expected to be stronger as manufacturing issues are resolved and production capacity increases.

• Management aims for significant TerraSante sales growth in 2026 and targets cash flow positivity by 2027.

• No specific sales guidance provided due to early commercialization stage.

• International expansion planned, with product trials underway in the Netherlands, Brazil, and Australia.

• Short-term production disruptions expected to persist into Q2-2026.