Red Light Holland Corp.

For the quarter ended December 31, revenue was $1.3 million, up 9.9% from the same period last year. For the nine months ended December 31, revenue was $3.5 million, up 28.9% year over year. Gross profit margin was 42.3% for the quarter and 43.6% on a year-to-date basis. Management did not provide EPS in the call. On guidance, the company said Amazon is a slower season and that all SKUs should be back in the coming weeks, but it is shifting emphasis toward retail/B2B channels. On the farm build, management reiterated prior expectations that the project could ultimately support about 80,000 per week and roughly $16 million to $17 million in revenue, with ramp-up stages along the way.

Todd Shapiro struck an upbeat but defensive tone, repeatedly emphasizing transparency, shareholder engagement, and cautious long-term growth. Strategically, he said the company is building around brand development, distribution gains, and a shift toward business-to-business and retail rather than relying mainly on direct-to-consumer sales. He also said Red Light wants to avoid the mistakes of cannabis companies that overbuilt too early, preferring to wait for the right market and regulatory conditions before moving aggressively into psychedelics.

David Ascott focused on the hard numbers and framed the quarter as evidence that revenue growth is outpacing overhead growth. He cited $1.3 million in quarterly revenue, $3.5 million in nine-month revenue, and gross margins of 42.3% and 43.6%, saying the company is maintaining healthy profitability on gross profit despite seasonality and product-mix swings. He said the growth in revenue and gross margin has outpaced G&A movement and that the company is working to right-size costs across North America and Europe.

The most notable questions centered on the drop in gross profit despite higher revenue, Amazon reviews and alleged mislabeled Happy Caps boxes, retailer listings that may no longer be active, the strategy for SR Wholesale, the Peterborough farm build, and possible share buybacks. Management said the gross margin softness mainly reflected product mix, seasonality, and some pricing pressure from competitive conditions, especially in Happy Caps and Amazon. On the farm, management said the build is being timed carefully to save money, with orders and construction staged over time, and on buybacks Todd said approximately 1.5 million shares have already been repurchased under the normal course issuer bid and that future repurchases will depend on cash and the quarterly budget.