Cannara Reports Q1 Fiscal 2026 Results, Delivers New Record Financial Results, Extends Market Share Gains and Advances Disciplined Expansion Strategy

New Record Financial Results: Total revenues of $30.1 million, gross profit before fair value adjustments of $13.5 million or 45% and Adjusted EBITDA of $8.8 million1, supported by operating cash flows of $8.0 million and free cash flow of $3.3 million2.

Extends Market Share Gains: Estimated national retail market share reached 4.1% in Q1 2026, up from 3.8% in Q4 2025, driven by strong momentum across key provinces, including Québec, where Cannara ranked #1 by December 2025 following the successful vape launch, and continued growth in Ontario, Canada's largest market3.

Disciplined Expansion Strategy: Valleyfield's new processing center remains on budget and on track for completion in Fiscal 2026, while the Company advances the fit-out of three additional grow zones to be cultivation-ready at the start of Fiscal 2027 to support anticipated demand.

Annual General and Special Meeting: scheduled for January 29, 2026, at 11:00 a.m. EST.

All financial results are reported in Canadian dollars, unless otherwise stated.

MONTREAL, Jan. 26, 2026 (GLOBE NEWSWIRE) -- Cannara Biotech Inc. ("Cannara", "the Company", "us" or "we") (TSXV:LOVE) (OTCQX:LOVFF) (FRA: 8CB0), a vertically integrated producer of premium-grade cannabis products at affordable prices with two mega facilities based in Québec spanning over 1,600,000 sq. ft., today announced its financial and operating results for the fiscal quarter ended November 30, 2025. The condensed interim consolidated financial statements and related notes thereto and the accompanying Management's Discussion and Analysis can be accessed by visiting the Company's website at investors.cannara.ca, or by accessing the Company's SEDAR+ profile at www.sedarplus.ca. The Company's latest investor presentation is available at www.cannara.ca/investors/investor-deck/.

Management Commentary:

"Our continued market share expansion in Q1 2026 reflects the strength of our brands and our disciplined approach to growth," said Zohar Krivorot, Founder and Chief Executive Officer of Cannara. "We achieved our highest quarterly national retail market share to-date this period, driven by improved supply availability and continued sell-through strength across our branded portfolio. With our post-processing capacity now fully utilized, our Fiscal 2026 investments prioritize the development of our new processing center at Valleyfield and the preparation of three additional grow zones, positioning Cannara to support future expansion while maintaining and improving operational efficiency."

"Our Q1 2026 financial results demonstrate the effectiveness of our operating model and our continued focus on efficiency and profitability," commented Nicholas Sosiak, Chief Financial Officer of Cannara. "Gross cannabis revenues increased 20%, gross profit before fair value adjustments rose by 38% and adjusted EBITDA increased by 47% compared to the same period of prior year, reflecting higher production volumes, improved yields and ongoing cultivation and post-processing optimization. We also generated strong operating cash flow, which supports a disciplined capital allocation strategy. Cannara is well positioned to expand post-processing capacity, enhance margins and support sustainable long-term growth."

Q1 2026 EARNINGS WEBCAST

Cannara Biotech's CEO, Zohar Krivorot, and CFO, Nicholas Sosiak, will host an earnings webcast today, Monday, January 26, 2026, at 11:00 a.m. EST consisting of prepared remarks followed by a question-and-answer session.

A Media Snippet accompanying this announcement is available by clicking on this link.

Participants can find the live webcast here or on the Cannara Biotech website at https://www.cannara.ca/investors/company-events/. For interested individuals unable to join, the event will be archived on the company's website.

Investors are encouraged to submit questions in advance to While live questions will be accepted during the session, priority will be given to those submitted by email.

Q1 2026 FINANCIAL HIGHLIGHTS

Q1 2026 vs Q1 2025 Comparable Period Highlights

Gross cannabis revenues before excise taxes increased to $41.8 million in Q1 2026 from $34.9 million in Q1 2025, a $6.9 million or 20% increase driven by deeper penetration in existing markets, the Québec vape launch, and new genetics/product additions;

Total revenues, net of excise taxes, increased to $30.1 million in Q1 2026 from $25.1 million in Q1 2025, a $5.0 million or 20% increase;

Gross profit before fair value adjustments rose to $13.5 million in Q1 2026, up 38% from $9.8 million in Q1 2025, reflecting expanded capacity from activation of the 11th and 12th grow zones in Q3 and Q4 2025 and cultivation enhancements in second half of 2025 that improved yields;

Gross profit percentage before fair value adjustments increased to 45% in Q1 2026 from 39% in Q1 2025;

Operating income was $2.7 million in Q1 2026 compared to $4.2 million in Q1 2025, as higher gross profit was largely offset by a net fair value adjustment of $(2.3) million (vs. $0.4 million in Q1 2025) and slightly higher payroll and sales and marketing expenses as operations expanded;

Income before income taxes was $2.0 million in Q1 2026, down 33% from $3.0 million in Q1 2025, primarily due to higher share-based compensation expense in the quarter;

Net income was $1.0 million in Q1 2026, compared to $2.3 million in Q1 2025 as a result of the non-cash fair value adjustment and additional shared-based compensation expense incurred;

Adjusted EBITDA increased 47% to $8.8 million in Q1 2026 from $6.0 million in Q1 20254;

Operating cash flow was $8.0 million in Q1 2026, compared to $5.8 million in Q1 2025;

Free cash flow was $3.3 million in Q1 2026, down from $4.6 million in Q1 2025, primarily due to capex related to the ongoing Valleyfield construction project4;

Earnings per share were $0.01 in Q1 2026 compared to $0.03 in Q1 2025.

Q1 2026 vs Q4 2025 Quarter over Quarter ("QoQ") Highlights

Gross cannabis revenues before excise taxes increased by 7%, from $39.1 million in Q4 2025 to $41.8 million in Q1 2026, driven by continued strength in Québec and other provinces, supported by the Québec vape launch in November 2025;

Total net revenues, net of excise taxes, increased by 6% QoQ, rising from $28.3 million in Q4 2025 to $30.1 million in Q1 2026 , reflecting continued market share gains in key markets;

Gross profit before fair value adjustments was $13.5 million, up 14% QoQ;

Gross profit percentage before fair value adjustments increased from 42% in Q4 2025 to 45% in Q1 2026;

Operating income was $2.7 million in Q1 2026 compared to $5.3 million in Q4 2025 primarily due to a $2.6 million variation in net fair value adjustment on biological assets and inventory;

Income before income taxes was $2.0 million in Q1 2026 compared to $4.5 million in Q4 2025. The decrease stems from the variation in net fair value adjustments in addition to higher shared-based compensation expense incurred in the period, both non-cash items;

Net income was $1.0 million in Q1 2026 compared to a net income of $3.3 million in Q4 2025;

Adjusted EBITDA increased by $1.4 million to $8.8 million in Q1 2026, compared to $7.4 million in Q4 2025 as a result of higher gross margin achieved in the period5;

Cash from operating activities was $8.0 million in Q1 2026, up from $2.8 million in Q4 2025, reflecting the Company's increasing sales and improved margins.

Free cash flow for Q1 2026 was $3.3 million compared to $1.4 million in Q4 20255.

Q1 2026 OPERATIONAL HIGHLIGHTS

Capacity Expansion and Yield Optimization

Cannara achieved an estimated national retail market share of 4.1%, its highest market share to-date, showing increases of 8% QoQ in Q1 2026 and a further 7% increase to an estimated 4.4% in December 2025, reflecting the continued success of the Québec vape launch and further growth across key provincial markets.

Cannara's approach to expansion remains measured and margin focused. While the Valleyfield Facility has only realized half of its full 24-zone capacity, the Company's strategy is to scale production gradually, in line with market demand, rather than pursuing rapid volume growth at the expense of profitability. This disciplined approach, coupled with investments in sales and marketing, positions Cannara to strengthen brand recognition and loyalty across its three flagship brands while protecting margins in an increasingly competitive landscape.

Looking forward, with the Farnham facility now operating at maximum existing post-processing capacity, Cannara's Fiscal 2026 capital investment strategy will prioritize the build-out of a new processing center at the Valleyfield Facility to support growing post-processing activities and enable additional grow zone activations while maintaining and improving operational efficiency. The project is currently on track and on budget, with completion expected by the end of Fiscal 2026. In parallel, the Company will fit out three additional grow zones to be ready for activation heading into Fiscal 2027, positioning Cannara to remain agile in scaling cultivation and post-processing capacity to meet evolving consumer demand across key markets.

Innovating for Market Leadership

Cannara continues to grow core product lines and strengthen its position in priority categories through disciplined portfolio management and targeted innovation, supporting ongoing market share gains. Q1 2026 launch highlights included new Tribal ceramic-tip preroll format extensions and Tribal extracts, such as Neon Sunshine Supernova and Trifecta, Porto Leche live resin vape cart and live resin full spectrum extract, and the Nugz El Guapo all-in-one cured resin vape.

In Q1 2026, Cannara entered Québec's new vape cartridge category with five approved SKUs, including three live resin and two solventless live rosin vapes. Developed by the Company's R&D team to meet Québec's regulatory framework, these products feature sub-30% THC formulations with no distillate or fillers, and include Tribal Bubble Up and Cuban Linx live resin vapes, Orchid CBD Jean Guy live resin vape, and Nugz Garlic Juice and Jungle Driver live rosin vapes.

The Company continues to invest in new genetics through a rigorous pheno-hunting program that selects a small number of top-performing cultivars from hundreds evaluated, focusing on brand fit, potency, yield and market appeal. Cannara's Fiscal 2026 pheno-hunt is ongoing, supporting a pipeline of new exotic genetics targeted for Fiscal 2027 launches.

Strengthening Market Share Across Canada

Cannara's recent performance across various provinces highlights its continued successful performance across all markets demonstrating its ability to capture market share from its competitors.

Q1 2026 vs Q4 2025 Market Share6QoQ

The table below presents the Company's market share for the most recent completed quarter in comparison to the previous quarter.

Region

Q1 2026

Q4 2025

Variance

National

4.1%

3.8%

7.9%

Quebec

13.5%

12.8%

5.5%

Ontario

3.1%

2.8%

10.7%

Alberta

2.5%

2.5%

0.0%

British Columbia

1.8%

1.8%

0.0%

Saskatchewan

0.9%

1.3%

-30.8%

Manitoba

1.4%

1.1%

27.3%

Nova Scotia

0.4%

0.5%

-20.0%

Newfoundland

0.10%

NA

NA

 

 

 

 

Q1 2026 vs Q1 2025 Market Share7Comparable Period

The table below presents the Company's market share for the most recent completed quarter in comparison to the same quarter in prior year.

Region

Q1 2026

Q1 2025

Variance

National

4.1%

3.7%