Cannara Biotech Delivers Record Fiscal 2025 Revenue and Profitability, Achieves First Year of Positive Retained Earnings

• Record Fiscal 2025 Financial Performance: Record net revenues of $107.3 million, adjusted EBITDA of $28.1 million¹, net income of $13.1 million, operating cash flow of $20 million and free cash flow of $13.7 million¹ for Fiscal 2025.
• Stronger Balance Sheet and Earnings Quality: First year of positive retained earnings as at August 31, 2025, supported by continued free cash flow generation and lower leverage.
• Continued Market Share Expansion: National market share rose to 3.81% in Fiscal 2025, up 32% year over year, and climbed further to 4.1% in October 2025².
• Annual General Meeting of shareholders scheduled for January 29, 2026, at 11:00 a.m. EST.

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

MONTREAL, Nov. 24, 2025 (GLOBE NEWSWIRE) — Cannara Biotech Inc. (“Cannara”, “the Company”, “us” or “we”) (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB0), a vertically integrated producer of premium-grade cannabis products at affordable prices with two mega facilities based in Québec spanning over 1,650,000 sq. ft., today announced its financial and operating results for the three and twelve-month periods ended August 31, 2025.The full set of annual audited consolidated consolidated financial statements for year ended August 31, 2025 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:

“Fiscal 2025 represents the strongest annual performance in Cannara Biotech’s history and reflects our ability to execute on the significant growth opportunity in front of us,” stated Zohar Krivorot, President and Chief Executive Officer of Cannara. “During the year, we set new annual records for revenue, adjusted EBITDA, net income, operating cash flow and free cash flow, delivering substantial year over year growth across almost all key financial metrics. We also delivered strong share gains across our markets, increasing our national market share by almost 32% year over year to 3.81%. In our home province of Quebec, we continued to capture and maintain consumer loyalty, increasing our provincial market share by over 53% year over year to 12.72%.”

“In the near term, our focus is on a successful execution of the November vape category launch in Quebec, where Cannara has secured 20% of all accepted SKUs by the SQDC,” Mr. Krivorot continued. “We also look ahead to our Fiscal 2026 post processing initiative at Valleyfield, which will position Cannara for its next phase of cultivation expansion. Over time, we plan to operationalize the remaining 12 grow rooms at our flagship Valleyfield facility, which would increase our total cultivation capacity by approximately 100% over the next four years.”

“We would also like to note the passing of Jack M. Kay, and acknowledge his strong leadership, experience and support as a member of our Board since 2019,” Mr. Krivorot added. “Jack made a lasting impact on Cannara and all those who had the privilege of working with him. On behalf of the entire Company, we extend our deepest condolences to his family and loved ones.”

“Fiscal 2025 was another milestone year for Cannara, further validating our CPG strategy and the efficiency of our operating platform,” commented Nicholas Sosiak, Chief Financial Officer of Cannara. “Record financial results continue to demonstrate the strength of our brands, our focus on innovation and the high return opportunities within our portfolio. Looking ahead, Cannara remains committed to disciplined, profitable growth, continued operational efficiency gains and a strong financial foundation that supports sustainable long term value creation,” concluded Mr. Sosiak.

FISCAL 2025 EARNINGS WEBCAST

Cannara Biotech’s CEO, Zohar Krivorot, and CFO, Nicholas Sosiak, will host an earnings webcast today, Monday, November 24, 2025, at 11:00 a.m. ET 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 investors@cannara.ca. While live questions will be accepted during the session, priority will be given to those submitted by email.

FISCAL 2025 FINANCIAL HIGHLIGHTS

• Gross cannabis revenue before excise taxes increased 35% to $148.6 million in Fiscal 2025, from $110.2 million in 2024, driven by deeper penetration in existing provinces, new market entries and new genetics and SKUs;
• Total revenue, net of excise taxes, increased 31% to $107.3 million in Fiscal 2025, from $82.2 million in Fiscal 2024;
• Gross profit before fair value adjustments increased 60% to $44.5 million in Fiscal 2025, from $27.9 million in Fiscal 2024, reflecting higher production capacity and operating efficiencies across cultivation and post processing;
• Gross margin before fair value adjustments increased to 41% in Fiscal 2025 from 34% in Fiscal 2024;
• Operating income more than doubled to $22.2 million in Fiscal 2025, compared to $10.1 million in Fiscal 2024;
• Income before income taxes increased to $18.1 million in Fiscal 2025, from $4.5 million in Fiscal 2024, a 304% increase;
• Net income increased 103% to $13.1 million in Fiscal 2025, from $6.4 million in Fiscal 2024;
• Adjusted EBITDA increased 86% to $28.1 million in Fiscal 2025, from $15.1 million in Fiscal 2024³;
• Operating cash flow increased to $20.0 million in Fiscal 2025, from $10.7 million in Fiscal 2024;
• Free cash flow increased to $13.7 million in Fiscal 2025, from $3.2 million in Fiscal 2024³;
• Earnings per share increased to $0.14 in Fiscal 2025, from $0.07 in Fiscal 2024.

Q4 2025 FINANCIAL HIGHLIGHTS

Q4 2025 vs Q4 2024 Comparable Period Highlights

• Gross cannabis revenue before excise taxes increased 25% to $39.1 million in Q4 2025, from $31.4 million in Q4 2024, driven by deeper penetration in existing markets, new market entries and new genetics and SKUs;
• Total revenue net of excise taxes increased 21% to $28.3 million in Q4 2025, from $23.4 million in Q4 2024;
• Gross profit before fair value adjustments increased 68% to $11.8 million in Q4 2025, from $7.0 million in Q4 2024, reflecting expanded production capacity from the activation of the 11th and 12th grow zones and ongoing cultivation improvements, including higher yielding genetics identified through the pheno-hunt program;
• Gross margin before fair value adjustments improved to 42% in Q4 2025, from 30% in Q4 2024, driven by increased production capacity and efficiencies across cultivation and post processing;
• Operating income was $5.3 million in Q4 2025, up 5% from $5.0 million in Q4 2024, as increased sales and marketing and additional G&A supported the Company’s expansion;
• Income before income taxes increased 20% to $4.5 million in Q4 2025, from $3.8 million in Q4 2024;
• Net income was $3.3 million in Q4 2025, compared to $5.8 million in Q4 2024, with the prior-year quarter benefiting from a $2.0 million income tax recovery related to the recognition of deferred tax assets;
• Adjusted EBITDA increased 102% to $7.5 million in Q4 2025, from $3.7 million in Q4 2024⁴;
• Operating cash flow was $2.8 million in Q4 2025, compared to $3.2 million in Q4 2024;
• Free cash flow was $1.4 million in Q4 2025, compared to $2.7 million in Q4 2024, primarily due to $1.4 million of capital expenditures in the quarter⁴;
• Earnings per share were $0.04 in Q4 2025, compared to $0.06 in Q4 2024.

Q4 2025 vs Q3 2025 Quarter over Quarter Highlights

• Gross cannabis revenue before excise taxes increased 3% to $39.1 million in Q4 2025, from $37.8 million in Q3 2025, driven by organic growth in Quebec and other provinces and expanded distribution outside Quebec;
• Net revenue after excise taxes increased 4% quarter over quarter to $28.3 million in Q4 2025, from $27.3 million in Q3 2025;
• Gross profit before fair value adjustments was $11.8 million in Q4 2025, down 2% from $12.1 million in Q3 2025, primarily due to a sales mix shift toward value formats and newer SKUs;
• Gross margin before fair value adjustments was 42% in Q4 2025, compared to 44% in Q3 2025 due to a larger write-down on inventory;
• Operating income was $5.3 million in Q4 2025, compared to $6.8 million in Q3 2025, reflecting higher operating expenses including year end bonus accruals and increased sales and marketing, as well as higher depreciation and fair value changes;
• Income before income taxes was $4.5 million in Q4 2025, compared to $5.8 million in Q3 2025;
• Net income was $3.3 million in Q4 2025, compared to $4.1 million in Q3 2025;
• Adjusted EBITDA was $7.5 million in Q4 2025, compared to $7.6 million in Q3 2025⁴;
• Cash from operating activities was $2.8 million in Q4 2025, compared to $13.9 million in Q3 2025, mainly due to timing of non cash working capital, including early excise tax payments and higher inventory from raw material pre purchases;
• Free cash flow was $1.4 million in Q4 2025, compared to $11.7 million in Q3 2025, reflecting the change in operating cash flow and higher capital expenditures⁴.

FISCAL 2025 OPERATIONAL HIGHLIGHTS

Capacity Expansion and Yield Optimization

In Fiscal 2025, the Company successfully activated two additional grow zones in its Valleyfield Facility reaching 12 in total, adding 50,000 square feet of canopy and increasing total annual production capacity to 39,500 kilograms. As a result of extensive research and development on cultivation techniques during the year, Cannara was able to optimize its cultivation cycle time, which lifted total output by 26% to 50,000 kilograms per year, effectively achieving its Fiscal 2026 production target one year ahead of schedule.

Importantly, 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, Tribal, Nugz and Orchid CBD, while protecting margins in an increasingly competitive landscape.

Looking forward, with the Valleyfield facility now producing at its current post-processing capacity, the Company’s Fiscal 2026 capital investment strategy will prioritize the build out of the new processing center. The recently announced $10 million capital expenditure term loan from BMO will fund Phase 1 of this project, which is expected to be completed by the end of Fiscal 2026. In parallel, the Company will fit out three additional grow zones, so they are ready for activation going into Fiscal 2027, positioning Cannara to support future cultivation expansion while maintaining and improving operational efficiency.

Innovating for Market Leadership

By growing successful product lines and strengthening its position within priority categories, Cannara is effectively capturing market share and reinforcing its leadership through disciplined category management and targeted innovation. Launch highlights of Cannara’s product portfolio for Q4 2025 include:

• Nugz Waygu 7g dried flower and 7 x 0.5g multipack pre-rolls
• Tribal Porto Leche 3.5g dried flower and 5 x 0.6g multipack pre-roll
• Nugz Guava Jam 7 x 0.5g multipack pre-rolls
• Tribal G Mint Supernova all-in-one live resin vape
• Tribal Galactic Rntz Supernova all-in-one live resin vape
• Tribal Triple Burger Supernova all-in-one live resin vape
• Tribal Bubble Up Trifecta infused pre-rolls
• Tribal Neon Sunshine Genetic Pro 510 vape battery
• Häpple glass hash pipe

To begin Fiscal 2026, in November 2025, Cannara will enter Quebec’s new vape cartridge category with five approved SKUs, including three live resin and two solventless live rosin vapes, representing 20% of the 25 in-store products authorized by the SQDC. Developed by the Company’s R&D team and validated through consumer sensory testing, these formulations comply with Quebec’s regulatory framework, including sub-30% THC and no distillate or fillers. This launch marks Cannara’s entry into a previously restricted segment in its largest provincial market and reinforces its position as Canada’s #1 premium live resin vape provider.

FISCAL 2025 OPERATIONAL HIGHLIGHTS (cont’d)
        
Strengthening Market Share Across Canada

The table below presents the Company’s market share for the most recent completed fiscal year in comparison to the previous fiscal year. 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.

FY 2025 vs FY 2024 Market Share⁵

CAPITAL TRANSACTIONS

• Through Q1 to Q3 2025, the Company granted 525,000 share options to employees at an exercise price of $1.00, 100,000 share options at an exercise price of $1.25 and 206,900 share options at an exercise price of $1.80 subject to certain vesting and conditions in accordance with the Company’s employee share option plan and expiring after seven years.
• During Q4 2025, the Company granted 3,625,000 share options to employees at an exercise price of $1.44 vesting monthly over three years and expiring after ten years.
• During FY 2025, the Company granted 257,500 restricted share units without performance conditions (RSUs) to members of the board of directors which are exercisable for no consideration. In addition, the Company settled 1,414,183 RSUs for common shares. As a result, the book value of the RSUs totalling $1,241,515 was reclassed from contributed surplus to share capital.
• Subsequent to year-end, the Company granted 44,600 share options to employees and members of the board of directors at an exercise price of $1.80 per share, vesting in one year and expiring after seven years.

ANNUAL GENERAL MEETING OF SHAREHOLDERS AND ANNUAL INFORMATION FORM

Cannara’s Annual General Meeting of shareholders is scheduled for January 29, 2026, at 11:00 a.m. Est and will be held via live webcast online. The Company also announced that its 2025 Annual Information Form and its Notice of Annual Meeting are now posted on Cannara’s website at www.cannara.ca and filed on SEDAR+ at www.sedarplus.ca.

Shareholders are encouraged to vote on the matters before the meeting by proxy and to join the meeting by webcast. Those who would like to vote on matters by proxy are requested to read the notes to form of proxy and then to, complete, sign and mail the enclosed form of proxy in accordance with the instructions set out in the proxy and in the management proxy circular to be posted on Cannara’s website at www.cannara.ca and filed on SEDAR+ at www.sedarplus.ca. Shareholders will be able to join the annual general meeting by clicking on the here. 

NON-GAAP MEASURES AND OTHER FINANCIAL MEASURES

The Company reports its financial results in accordance with International Financial Reporting Standards (“IFRS”). Cannara uses a number of financial measures when assessing its results and measuring overall performance. Some of these financial measures are not calculated in accordance with IFRS. National Instrument 52-112 respecting Non-GAAP and Other Financial Measures Disclosure (“NI 52-112”) prescribes disclosure requirements that apply to the following types of measures used by the Company: (i) non-GAAP financial measures (ii) non-GAAP and other supplementary financial ratios and (iii) total of segments measures. In this news release, the following non-GAAP measures, non-GAAP and other supplementary financial ratios and segment measures are used by the Company are used by the Company: adjusted EBITDA, free cash flow, working capital, segment gross profit before fair value adjustments as a percentage of segment net revenue, segment gross profit as a percentage of segment net revenue, segment operating income as a percentage of segment net revenue, and adjusted EBITDA as a percentage of net revenue. There are no total of segments measures included in this press release. Additional details for these non-GAAP and other financial measures can be found in the section entitled “Non-GAAP and Other Financial Measures” of Cannara’s MD&A for the year ended August 31, 2025, which is posted on Cannara’s website at www.cannara.ca and filed on SEDAR+ at www.sedarplus.ca. Reconciliations of non-GAAP financial measures and non-GAAP ratios to the most directly comparable IFRS measures are provided below. Management believes that these non-GAAP financial measures and non-GAAP ratios provide useful information to investors regarding the Company’s financial condition and results of operations as they provide key metrics of its performance. These measures are not recognized under IFRS, do not have any standardized meanings prescribed under IFRS and may differ from similar computations as reported by other issuers, and accordingly may not be comparable. These measures should not be viewed as a substitute for the related financial information prepared in accordance with IFRS.

Reconciliation of Adjusted EBITDA

Adjusted EBITDA is a non-GAAP Measure and can be reconciled with net income, the most directly comparable IFRS financial measure, as detailed below.

Adjusted EBITDA as a percentage of total revenues is a non-GAAP financial ratio, determined as adjusted EBITDA divided by total revenues.

*Non-GAAP financial measure
**Non-GAAP financial ratio

NON-GAAP MEASURES, NON-GAAP RATIOS AND SEGMENT MEASURES

Reconciliation of free cash flow

Free cash flow is a non-GAAP measure and can be reconciled with Cash from operating activities, the most directly comparable IFRS financial measure, as detailed below.

*Non-GAAP financial measure

Reconciliation of working capital

Working capital is a non-GAAP Measure and can be reconciled with total current assets and total current liabilities, the most directly comparable IFRS financial measure, as detailed below.

*Non-GAAP financial measure

CONTACT

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

ABOUT CANNARA

Cannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB0), is a vertically integrated producer of affordable premium-grade cannabis and cannabis-derivative products for the Canadian markets. Cannara owns two mega facilities based in Québec spanning over 1,650,000 sq. ft., providing the Company with 100,000 kg of potential annualized cultivation output. Leveraging Québec’s low electricity costs, Cannara’s facilities produce premium-grade cannabis products at an affordable price. For more information, please visit cannara.ca.

CAUTIONARY STATEMENT REGARDING “FORWARD-LOOKING” INFORMATION

This news release may contain “forward-looking information” within the meaning of Canadian securities legislation (“forward-looking statements”). These forward-looking statements are made as of the date of this press release and the Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required under applicable securities legislation. Forward-looking statements relate to future events or future performance and reflect Company management’s expectations or beliefs regarding future events and include, but are not limited to, the Company and its operations, its projections or estimates about its future business operations, its planned expansion activities, anticipated product offerings, the adequacy of its financial resources, the ability to adhere to financial and other covenants under lending agreements, future economic performance, and the Company’s ability to become a leader in the field of cannabis cultivation, production, and sales.

In certain cases, forward-looking statements can be identified by the use of words such as “plans,” “expects” or “does not expect,” “is expected,” “budget,” “scheduled,” “estimates,” “forecasts,” “intends,” “anticipates” or “does not anticipate,” or “believes,” or variations of such words and phrases or statements that certain actions, events or results “may,” “could,” “would,” “might” or “will be taken,” “occur” or “be achieved” or the negative of these terms or comparable terminology. In this document, certain forward-looking statements are identified by words including “may,” “future,” “expected,” “intends” and “estimates.” By their very nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

Forward-looking information is based upon a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those that are disclosed in, or implied by, such forward-looking information. These risks and uncertainties include, but are not limited to, the risk factors which are discussed in greater detail under “Risk Factors” in the Company’s AIF available on SEDAR+ at www.sedarplus.ca and under the “Investor Area” section of our website at https://www.cannara.ca/en/investor-area.

Other risks not presently known to the Company or that the Company believes are not significant could also cause actual results to differ materially from those expressed in its forward-looking statements. Although the forward-looking information contained herein is based upon what we believe are reasonable assumptions, readers are cautioned against placing undue reliance on this information since actual results may vary from the forward-looking information. Certain assumptions were made in preparing the forward-looking information concerning the availability of capital resources, business performance, market conditions, as well as customer demand. Consequently, all of the forward-looking information contained herein is qualified by the foregoing cautionary statements, and there can be no guarantee that the results or developments that we anticipate will be realized or, even if substantially realized, that they will have the expected consequences or effects on our business, financial condition or results of operation. Unless otherwise noted or the context otherwise indicates, the forward-looking information contained herein is provided as of the date hereof, and we do not undertake to update or amend such forward-looking information whether as a result of new information, future events or otherwise, except as may be required by applicable law.

¹ Please refer to the Non-GAAP and Other Financial Measures section of this news release for corresponding definitions.
² As reported by Hifyre data for the periods of September 2024 to August 2025 and September 2023 to August 2024 and October 2025 in all listed provinces excluding Quebec where Weed Crawler was deemed to be more accurate, and Nova Scotia where NSLC wholesale data was deemed to be more accurate.
³ Please refer to the Non-GAAP and Other Financial Measures section of this news release for corresponding definitions.
⁴ Please refer to the Non-GAAP and Other Financial Measures section of this news release for corresponding definitions.
⁵ As reported by Hifyre data for the periods of September 2024 to August 2025 and September 2023 to August 2024 in all listed provinces excluding Quebec where Weed Crawler was deemed to be more accurate, and Nova Scotia where NSLC wholesale data was deemed to be more accurate.