CanadaBis Reports Fiscal Q1 2026 Results with Positive Operating Cash Flow

CALGARY, AB, Dec. 30, 2025 /CNW/ - Canadabis Capital Inc. (TSXV: CANB) (the "Company") is pleased to announce its financial results for the three months ended October 31, 2025 (the "Quarter"). The Company also confirms that its unaudited financial statements, accompanying management's discussion and analysis (MD&A) for the Quarter, and all related and required regulatory filings are now available on SEDAR+.

Selected Financial Highlights for the Quarter Ended October 31, 2025 and 2024

		Three months ended
		October 31, 2025	October 31, 2024
Gross revenue		$5,729,412	$9,602,446
Excise duty		$2,468,122	$4,515,919
Excise duty %		43.1 %	47.0 %
Net revenues		$3,261,290	$5,086,527
Cost of sales		$1,716,085	$2,885,281
Gross profit		$1,545,205	$2,201,246
Gross profit %		27.0 %	22.9 %
Net income (loss) and comprehensive income (loss)		($128,539)	$321,569
Net income (loss) per share (basic and diluted)		$(0.00)	$0.00
Adjusted EBITDA^(1)		$197,029	$675,892
Cash and cash equivalents		$938,926	$801,168

(1)	Adjusted EBITDA is a Non-GAAP measure.  Refer to "Cautionary Statement Regarding Certain Non-GAAP Measures" below and in the financial statements and MD&A for further details.

During the Quarter, cannabis sales in British Columbia were temporarily impacted by labour disruptions at the British Columbia Liquor Distribution Branch, which constrained product ordering, warehousing, and deliveries to licensed retailers. While distribution activities began to normalize toward the end of the Quarter, the disruption reduced product availability and retail sell through during the period. The Company estimates this temporary disruption resulted in approximately $0.5 million of lost cannabis sales. 

In spite of this temporary market disruption, the Company delivered solid results, generating gross revenue of $5.7 million and net revenue of $3.3 million, with gross margin improving to 27.0%, up from 22.3% in the prior quarter.  CanadaBis is also pleased to report that it recorded positive Adjusted EBITDA of $0.2 million and positive operating cash flow of $0.4 million during the Quarter.

"We are pleased to see the positive results generated from the extensive cost and labour efficiency initiatives implemented over recent months, coupled with the continued refinement of our product offerings toward higher margin formats," said Travis McIntyre, Chief Executive Officer of CanadaBis Capital Inc. "Despite temporary market disruption during the Quarter, the business delivered positive Adjusted EBITDA and operating cash flow, reflecting improved margin sustainability and disciplined execution. Management remains focused on strengthening liquidity, enhancing operating performance, and advancing initiatives that support long term cash generation and stability."

Convertible Debenture Interest Payment

The Company also confirms that it has received approval from the TSX Venture Exchange to satisfy the upcoming interest payment on its outstanding convertible debentures through the issuance of common shares in lieu of cash, in accordance with the terms of the debenture indenture and applicable Exchange policies.  A total of 2,766,452 common shares will be issued on December 31, 2025 in settlement of this interest payment and will be subject to a hold period of four months and one day from the date of issuance. This election reflects the Company's continued focus on liquidity management and balance sheet flexibility while meeting its ongoing financial obligations. 

ABOUT CANADABIS CAPITAL INC.

CanadaBis Capital Inc. is a vertically integrated Canadian cannabis company focused on achieving large-scale growth, from Cultivation to Extraction, in the fast-emerging global cannabis market. By targeting organic growth opportunities alongside the right-fit partners, the Company remains focused on finding and capitalizing on opportunities to grow, diversify and continue to lead our industry.  The Company trades on the TSX Venture Exchange under the symbol CANB.

CAUTIONARY STATEMENTS

Non-GAAP Measures

This news release contains the financial performance metric of Adjusted EBITDA, a measure that is not recognized or defined under IFRS (a "Non-GAAP Measure"). As a result, this data may not be comparable to data presented by other cannabis companies. For an explanation and reconciliation of Adjusted EBITDA to related comparable financial information presented in the Financial Statements prepared in accordance with IFRS, refer to the MD&A for the year ended July 31, 2025. The Company believes that Adjusted EBITDA is a useful indicator of operational performance and is specifically used by management to assess the financial and operational performance of the Company.

Adjusted EBITDA is a measure of the Company's financial performance. It is intended to provide a proxy for the Company's operating cash flow and is widely used by industry analysts to compare CanadaBis to its competitors and derive expectations of future financial performance of the Company. Adjusted EBITDA increases comparability between comparative companies by eliminating variability resulting from differences in capital structures, management decisions related to resource allocation, and the impact of fair value adjustments on biological assets, inventory, and financial instruments, which may be volatile on a period-to-period basis. Adjusted EBTIDA is not a recognized, defined, or standardized measure under IFRS. The Company calculates Adjusted EBITDA as net income (loss) and comprehensive income (loss) excluding changes in fair value of biological assets, change in fair value of biological assets realized through inventory sold, depreciation and amortization expense, share-based payments, and finance costs.

Regarding Forward-Looking Information

This news release contains certain forward-looking information within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements regarding the Company's expectations with respect to operating performance, margin sustainability, liquidity improvement, cash flow generation, cost and labour efficiency initiatives, product portfolio optimization, and future business strategies.

Forward-looking information is based on management's reasonable assumptions, estimates, expectations, and opinions as of the date of this news release. Such assumptions include, among others: continued demand for extract-derived and infused cannabis products; the Company's ability to maintain and improve operating efficiencies; stability in regulatory and excise tax frameworks; normalization of provincial distribution operations; access to input materials at expected costs; and the Company's ability to execute its business plan and meet ongoing financial obligations.

Forward-looking information is subject to known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements to differ materially from those expressed or implied by such statements. These risks include, but are not limited to: changes in consumer demand; pricing pressure and competitive dynamics in the Canadian cannabis market; fluctuations in excise tax impact; supply chain disruptions; regulatory changes; and general economic and market conditions.

Readers are cautioned not to place undue reliance on forward-looking information. Forward-looking information speaks only as of the date of this news release, and the Company does not undertake any obligation to update or revise such information except as required by applicable law.

Filing and Compliance

The Company's financial statements, MD&A, and related disclosures for the three months ended October 31, 2025 have been filed on SEDAR+ (https://www.sedarplus.ca) under the Company's profile.

SOURCE CanadaBis Capital Inc.

For more information, please visit or contact: [email protected], 1-888-STIGMA1, www.canadabis.com