Cannara Biotech Inc.

Q3 2026 gross cannabis revenue was CAD 44.1 million, up 16% year over year; total net revenue was CAD 31.8 million, also up 16% from CAD 27.3 million. Gross profit before fair value adjustments was CAD 13.4 million, gross margin was 42% versus 44% last year, adjusted EBITDA was CAD 8.5 million, and net income was CAD 4.8 million; basic and diluted EPS were both CAD 0.05. Operating cash flow was CAD 5.7 million and free cash flow was CAD 1.3 million. Year to date, gross cannabis revenue was CAD 123.7 million, total net revenue was CAD 89.1 million, gross profit before fair value adjustments was CAD 38.5 million with 43% margin, adjusted EBITDA was CAD 23.3 million, operating cash flow was CAD 16.6 million, and free cash flow was CAD 4.3 million. Management did not provide formal next-quarter or full-year financial guidance, but said total active capacity is expected to reach approximately 75,000 kg by the end of fiscal 2027 and that the Curaleaf agreement could represent up to CAD 21 million over two years.

Nicholas Sosiak framed the quarter as proof that Cannara’s model of premium quality at scale, disruptive pricing, and disciplined growth is working. He emphasized that the company is expanding capacity only in line with visible demand, pointing to stronger retail share in Ontario and Alberta, a broader distribution base, and the new Curaleaf partnership as validation of the platform. His tone was confident and strategic, but still focused on measured execution rather than rapid expansion for its own sake.

As interim CFO, Sosiak highlighted the company’s profitability and cash generation, including CAD 8.5 million of adjusted EBITDA, CAD 5.7 million of operating cash flow, and CAD 1.3 million of free cash flow in the quarter. He noted cash of CAD 21.8 million, working capital of about CAD 65.1 million, and a CAD 2 million draw on the CAD 10 million credit facility for the Valleyfield processing center, with borrowing cost reduced to 4.83%. He also said year-to-date investments in infrastructure exceeded CAD 10.5 million and that capital spending is being directed to post-processing throughput and additional cultivation capacity within the existing footprint.

Analysts focused heavily on the Curaleaf deal, asking what drives the CAD 21 million value, whether margins are better in bulk supply, and what upside might exist beyond the committed amount. Management said the contract is committed if Cannara delivers cannabis supply on schedule, that the bulk format avoids excise tax and packaging/trimming costs, and that margins should be similar to or better than current levels, while acknowledging further upside could exist if demand exceeds the current structure. Questions also centered on the timing and priority of international growth versus Canadian expansion, and management said it remains about 95% focused on Canada, with domestic demand strong enough to justify opening four rooms a year earlier than planned; they also described Quebec share as normalizing after an innovation cycle and said two new SKUs are coming in September.