💸 The Tape

In an industry that has historically confused production capacity with profitability, Cannara Biotech just delivered the kind of quarter that seasoned operators nod at and spreadsheets quietly applaud.

For Q1 Fiscal 2026 (ended November 30, 2025), the Québec-based cultivator and brand house put up numbers that point to something rare in Canadian cannabis: controlled growth with expanding margins — not the old “grow first, write off later” strategy that defined the sector’s earlier chapters.

Let’s start with the hard metrics.

Cannara reported gross cannabis revenues (before excise taxes) of $41.8 million, up 20% year-over-year. Net revenue followed suit, rising to $30.1 million. That alone would be respectable. But the more important story is happening further down the income statement.

Gross profit before fair value adjustments climbed 38% to $13.5 million, pushing gross margins to 45%, up from 39% a year ago. Meanwhile, Adjusted EBITDA jumped 47% to $8.8 million, and operating cash flow came in at a healthy $8.0 million. In other words, this growth isn’t being financed by wishful thinking — it’s being funded internally.

Net income was lower year-over-year, but the culprits were familiar non-cash items: biological fair value adjustments and share-based compensation. Operationally, the machine is tightening.

Cannara’s approach stands out precisely because it’s not chasing market share at any cost.

The company achieved its highest national retail market share to date at 4.1%, rising to roughly 4.4% in December. That gain was driven by improved supply consistency, continued brand strength, and a well-timed entry into Québec’s newly opened vape cartridge category.

But here’s the key: management is scaling in line with demand, not ahead of it.

Valleyfield — the company’s massive facility — is still only running about half of its eventual 24-zone cultivation capacity. That’s not underperformance. That’s optionality. Cannara is deliberately pacing activations so the market absorbs production without triggering price erosion.

In a country where wholesale compression has punished the undisciplined, that restraint is a competitive advantage.

Instead of simply turning on more grow rooms, Cannara is directing Fiscal 2026 capital spending toward post-processing — the part of the chain where margin lives.

The company’s Farnham site has reached full post-processing utilization, so the next step is building a new processing center at Valleyfield, while preparing three additional grow zones for activation heading into Fiscal 2027.

Translation: cultivation expands only when the downstream system can monetize it efficiently. It’s the agricultural equivalent of not opening new restaurants before the kitchen can handle the orders.

Cannara’s Q1 product pipeline also reflects disciplined innovation.

The company launched Québec-compliant vape SKUs built specifically for the province’s sub-30% THC framework, including live resin and solventless live rosin offerings under Tribal, Orchid, and Nugz brands. No filler, no regulatory gymnastics — just product engineering that fits the rulebook.

Meanwhile, its pheno-hunting program continues selecting top-performing genetics from hundreds of candidates, feeding a pipeline of cultivars aimed at Fiscal 2027 releases.

This is incremental innovation that protects brand identity while improving yields and consistency — not novelty for novelty’s sake.

Cannara’s quarter doesn’t scream for headlines, and that’s precisely the point.

This is a company:

• Expanding market share

• Improving margins

• Generating real cash flow

• Scaling capacity thoughtfully

In today’s cannabis market, that combination is more valuable than flashy revenue spikes.

Cannara isn’t trying to be the biggest. It’s trying to be durable — and in this industry, that may be the most contrarian strategy of all.

📈 Dog Walkers

Canadian Cannabis Is A Boomin

Canada’s regulated cannabis sector kept its foot on the gas in November, posting CA$477.9 million in nationwide sales and reinforcing a trend that has become the norm rather than the exception: steady, high-volume consumer demand. The latest figure ranks among the strongest monthly performances of the year and officially lifts 2025 year-to-date sales beyond CA$5 billion, a milestone that underscores how firmly entrenched the legal market has become.

As usual, Ontario led the charge, generating roughly CA$177 million in November sales. Alberta followed at about CA$81 million, with British Columbia close behind at CA$78 million, and Quebec contributing approximately CA$67 million. Together, these four provinces represented the overwhelming majority of national activity, highlighting the continued dominance of Canada’s largest and most developed retail jurisdictions.

November’s result also marked a clear step up from October’s CA$451.7 million, suggesting that consumer purchasing patterns remain stable even as the market matures. Monthly totals have now stayed comfortably above the CA$400 million level for most of the year — a sign that legal cannabis in Canada has moved past the early volatility phase and into a period defined by consistency and repeat buying behavior.

With eleven months on the books, the industry’s CA$5+ billion tally puts 2025 on pace to rival — or potentially surpass — prior annual records. That performance is being supported by a dense network of licensed retailers, established provincial distribution systems, and a consumer base that continues to engage with legal channels.

In short, Canada’s cannabis market is no longer about proving the model works. November’s numbers show a sector that is operating at scale, delivering dependable revenue, and closing out the year with momentum still firmly intact.

$VFF ( ▼ 0.59% ) Is In A Leadership Position

Village Farms International just added a new trophy to its export résumé, taking home the 2026 BC Export Award for Consumer Products from Business in Vancouver — a nod to the company’s rapidly expanding global footprint and the increasingly international role of British Columbia’s agri-cannabis sector.

The recognition is less about a single good quarter and more about scale plus execution. Through its EU-GMP certified, 4.8 million sq. ft. production campus, Village Farms has turned regulatory complexity into a competitive advantage. As of September 30, 2025, the company posted a 758% year-over-year increase in export sales, a figure that suggests this isn’t casual cross-border activity — it’s a deliberate, systems-driven export engine aimed squarely at highly regulated medical markets.

CEO Michael DeGiglio framed the win as the product of long-term discipline rather than opportunism, emphasizing investment ahead of demand and deep expertise in controlled environment agriculture. In other words: they didn’t wait for the global medical market to get interesting — they built for it early and at scale.

On the medical side, President of Global Medical Paul Furfaro highlighted the less glamorous but crucial ingredients of international success: consistency, compliance, and clinical credibility. Selling into pharmacy-driven systems in markets like Germany requires pharmaceutical-grade standards and dependable supply — areas where Village Farms has clearly focused its operating model. Several of its cultivars now rank among top performers in German medical channels, a market that doesn’t hand out shelf space lightly.

Back home, the company remains one of the largest single-site agricultural employers in B.C., with its Delta operations supporting hundreds of jobs. That local base underpins its global platform — a reminder that export strength often starts with operational muscle at home.

In short, Village Farms is positioning itself not just as a grower, but as a regulated-market export specialist — and this award signals that B.C.’s export ecosystem, and global medical buyers, are taking notice.

🗞️ The News

📺 YouTube

Congress Proposes Hemp Regulation Instead of Federal THC Ban | TTB Powered by Flowhub

What we will cover:

✅ On this episode of Trade To Black presented by Flowhub, hosts Shadd Dales and Anthony Varrell are joined by Michael Bronstein, President of ATACH, to break down what could be a key inflection point for U.S. cannabis and hemp policy.

They dig into a bipartisan hemp bill introduced by Rep. Morgan Griffith and what it could mean for intoxicating hemp-derived products like Delta-8, Delta-10, THCA, and hemp-derived THC beverages. The discussion looks at how lawmakers are approaching regulation, consumer safety, enforcement, labeling, and potency limits — and whether Washington is finally moving toward clearer rules for the hemp market.

The episode also looks at the ripple effects across the industry. How would tighter rules impact state-licensed cannabis operators, MSOs, CBD brands, and retailers? Where does this leave the balance between federally legal hemp and regulated cannabis, especially if enforcement starts to tighten?

The conversation then shifts to Florida, with an update on signature collection for the state’s adult-use cannabis ballot initiative. The panel breaks down where the numbers stand, the political headwinds, and what still needs to happen for the measure to qualify for the ballot and win statewide.

Plus, we shift to Florida: the latest on signature collection for Florida’s adult-use cannabis ballot initiative, what the numbers signal, the political headwinds, and what it will take to clear the threshold and win statewide.