The Lovesac pany(LOVE) GlobeNewswire·2025-01-27 13:00Core Insights - Cannara Biotech Inc. reported its strongest quarter in company history for Q1 2025, achieving record market share, revenue, adjusted EBITDA, operating cash flow, and free cash flow, reflecting successful execution of its long-term business strategy and industry leadership [3][4]. Financial Performance - Net revenues increased by 29% to 19.5 million in Q1 2024, marking the highest quarterly revenue in the company's history [5][10]. - Gross profit before fair value adjustments rose by 23% to 7.9 million in Q1 2024, with gross profit margins improving to 39% [4][10]. - Adjusted EBITDA reached a record-high of 5.2 million in Q1 2024 [10][22]. - Operating cash flow surged to 0.8 million in Q1 2024 [4][10]. - Free cash flow improved to 2.0 million in Q1 2024 [4][10]. Market Share and Growth - Cannara achieved a Canadian market share of 4.1%, representing a 28% increase quarter over quarter and a 58% increase year over year [5][17]. - The company plans to open two new growing zones, increasing capacity by 6,000 kg per year, and introduce over 20 new products in 2025 [3][5]. Operational Highlights - The company focused on building its operations and supply chain to accommodate increases in sales and market share, achieving its highest market share and revenue in Q1 2025 [8][10]. - Gross cannabis revenues increased by 33% to 10 million revolving credit facility with Bank of Montreal, with a drawn balance of $6.76 million as of November 30, 2024 [20]. - During Q1 2025, the company granted stock options and performance share units to employees and board members, indicating a commitment to incentivizing performance [21].