MustGrow Biologics (MGRO) Q2 2026 earnings summary

Executive summary

• Q2 2026 licensing revenue was CAD 1.4 million, marking a significant milestone, with cash received and reported as accounts receivable.

• TerraSante product sales were CAD 75,000 in Q2 2026, down from CAD 313,000 in Q2 2025 due to production transitions and costly air freight from Asia to the U.S.

• Net profit, including discontinued NexusBioAg operations, was CAD 300,000 versus a loss of CAD 1.1 million in Q2 2025; net profit from continuing operations was CAD 400,000 compared to a net loss of CAD 900,000 in Q2 2025.

• Year-to-date TerraSante sales as of August 15, 2026, reached CAD 900,000, up over 46% from all of 2025.

• Strong cash position at quarter-end with CAD 4.4 million in cash and CAD 5.2 million in working capital.

Financial highlights

• Q2 2026 TerraSante sales: CAD 75,000; gross loss: CAD 17,000; licensing revenue: CAD 1.4 million.

• Gross margin was -2% in Q2 2026 due to high air freight costs; six-month gross margin was 12% on sales of CAD 172,971 and gross profit of CAD 21,501.

• Quarterly expenses normalized at CAD 900,000, unchanged year-over-year.

• Cash at quarter-end: CAD 4.4 million; working capital: CAD 5.2 million.

Outlook and guidance

• Manufacturing improvements and transition from air to ocean freight are expected to restore gross margins to 24% or higher and support higher sales and margin recovery in H2 2026 and into 2027.

• Focus remains on driving TerraSante sales, with expectations for stronger performance in the remaining months of 2026 and 2027.

• Goal to achieve positive cash flow in 2027.