Core Insights - Cannara Biotech Inc. reported record-breaking financial results for Q3 2025, showcasing significant growth in revenue, gross profit, and cash flow, reflecting the successful execution of its long-term business strategy [3][6][7]. Financial Highlights - Total revenues, net of excise taxes, increased to $27.3 million in Q3 2025, representing a 40% increase year-over-year [7][12]. - Gross profit before fair value adjustments rose to $12.1 million in Q3 2025, a 110% increase from $5.7 million in Q3 2024, with gross margin improving to 44% from 29% [6][12][29]. - Adjusted EBITDA reached a record high of $7.6 million in Q3 2025, a 173% increase compared to the prior year, with an adjusted EBITDA margin of 28% [7][12][29]. - Operating cash flow surged to $13.9 million, up 221% from the previous year, while free cash flow increased to $11.7 million, an 841% rise [7][12][29]. Operational Highlights - The company achieved a 26% yield improvement across its facilities, increasing annual production capacity from 39,500 kg to 50,000 kg, reaching its Fiscal 2026 target a year ahead of schedule [4][15]. - Cannara received acceptance for 5 SKUs for the upcoming launch of the vape category in Québec, representing 20% of all accepted in-store SKUs by the province [4][19]. Market Position - Cannara's gross cannabis revenues before excise taxes increased to $37.8 million in Q3 2025, a 44% increase from $26.2 million in Q3 2024, driven by market penetration and new product introductions [12][29]. - The company maintained a disciplined approach to scaling production, focusing on profitability while expanding its market share across Canada [17]. Debt Management - Cannara successfully reduced its interest rate on its BMO credit facility by 50 basis points, bringing the cost of debt below 6%, reflecting strong financial performance and effective capital management [7][44][45].