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

Core Insights - Cannara Biotech Inc. reported its strongest annual performance in Fiscal 2025, achieving record revenues and significant growth across key financial metrics [3][5][8] - The company increased its national market share by nearly 32% year-over-year, reaching 3.81%, with a notable 53% increase in Quebec, bringing its market share to 12.72% [3][5][20] - Cannara plans to expand its cultivation capacity by approximately 100% over the next four years through the operationalization of additional grow rooms [3][15] Financial Performance - Record net revenues of $107.3 million for Fiscal 2025, a 31% increase from $82.2 million in Fiscal 2024 [5][8] - Adjusted EBITDA rose by 86% to $28.1 million, while net income increased by 103% to $13.1 million [11][24] - Operating cash flow reached $20 million, and free cash flow was $13.7 million for the fiscal year [5][11] Operational Highlights - Gross cannabis revenue before excise taxes increased by 35% to $148.6 million, driven by market penetration and new product offerings [8][11] - The company successfully activated two additional grow zones, increasing total annual production capacity to 39,500 kilograms, achieving its Fiscal 2026 production target ahead of schedule [13][14] - Cannara's disciplined approach to expansion focuses on maintaining margins while enhancing brand recognition across its product lines [14][16] Market Share Expansion - The company’s market share in various provinces showed significant growth, with Manitoba increasing by 342% and Nova Scotia by 860% [20] - Cannara's strategic entry into Quebec's new vape cartridge category with five approved SKUs is expected to further strengthen its market position [16][20] Future Outlook - The company is prioritizing capital investments for a new processing center, supported by a $10 million term loan from BMO, with completion expected by the end of Fiscal 2026 [15][22] - Cannara plans to operationalize three additional grow zones in preparation for future cultivation expansion [15][22]