Cannara Biotech Reports Q2 2026 Financial Results

MONTREAL – Cannara Biotech Inc. posted its fiscal second-quarter results, recording higher revenues and a sharp improvement in cash generation as the Quebec-based producer continued to pick up ground in a flat national Cannabis market.

For the three months ended February 28, the company reported total net revenues of $27.2 million, a 2% increase from $26.6 million a year earlier. Gross Cannabis revenues before excise taxes rose 3% to $37.8 million, helped by a 7% lift in retail sales that more than covered a drop in wholesale volume.

Gross profit before fair-value adjustments reached $11.6 million, up from $10.8 million, and the margin widened to 43% from 41%. The improvement came from added production capacity and refinements in cultivation and post-harvest processes. Operating income fell to $3.3 million from $5.9 million as the company stepped up spending on sales, marketing, R&D, and talent to support future expansion. Adjusted EBITDA was $6 million, down from $7.1 million. Net income came in at $1.7 million, or 2 cents a share, compared with $3.3 million, or 4 cents a share, last year.

Cash flow told a brighter story. Operating cash flow turned positive at $2.9 million from a $2.6 million use of cash a year ago, while free cash flow narrowed to a $0.3 million outflow from $4.0 million. Cash on hand stood at $21.9 million at quarter-end, with working capital of $61.3 million.

Market share data showed clear progress. Cannara’s estimated national retail penetration climbed to 4.4% from 3.9% a year earlier. In its home province of Quebec, it reached 14.3%, securing the No. 1 position among Cannabis suppliers. The company credited the gain in part to the recent launch of vape products. Retail sales growth held steady even as overall national Cannabis retail volumes showed little change year over year.

The company kept its product pipeline active, introducing new infused pre-rolls and fresh genetics that have gained traction in several provinces. Construction at the Valleyfield facility, its primary cultivation site, advanced in the quarter, with additional grow zones now operational.

Founder and CEO Zohar Krivorot described the period as steady progress against the company’s plan, noting that seasonal buying patterns and a normalization of early vape sales followed the holiday period. CFO Nicholas Sosiak pointed to the operating model’s ability to deliver cash flow while funding growth projects.