Delivra Health Brands Reports Financial Results for First Quarter of Fiscal 2026 Highlighting Continued Growth of Dream Water (R) and LivRelief(TM)

Rhea-AI Summary

Delivra Health (OTCQB: DHBUF) reported Q1 2026 results for the three months ended September 30, 2025, with net revenue of $3.207M versus $3.163M a year earlier and gross profit of $1.501M (47% margin). The company highlighted brand growth: Dream Water e-commerce +74% YoY and Dream Water US/Canada +8% YoY; LivRelief e-commerce +16% YoY.

Adjusted EBITDA improved to $56k from $16k a year earlier; net loss narrowed to $91k from $478k. Licensed LivRelief Infused sales fell 89% ($195k) during a distributor transition; a relaunch is planned for January 2026.

Positive

• Dream Water e-commerce sales +74% year-over-year
• Adjusted EBITDA improved to $56k from $16k YoY
• Net loss narrowed to $91k from $478k year-over-year

Negative

• Gross profit margin declined 4 percentage points to 47%
• Licensed LivRelief Infused sales down 89% ($195k) during transition
• Net cash provided from operating activities was negative $277k

Growth of Dream Water® US and Canada by 8% compared to same quarter last year

Growth of Dream Water® E-commerce by 74% compared to same quarter last year

Growth of LivRelief™ by 9% compared to same quarter last year

Growth of LivRelief™ E-commerce by 16% compared to same quarter last year

Vancouver, British Columbia--(Newsfile Corp. - November 10, 2025) - Delivra Health Brands Inc. (TSXV: DHB) (OTCQB: DHBUF) ("Delivra Health" or the "Company"), a consumer packaged goods company in the health and wellness sector, is pleased to announce its financial and operating results for the three months ended September 30, 2025 ("Q1 2026"). The Delivra Health portfolio features innovative brands Dream Water® and LivRelief™, which deliver relief from common health issues such as sleeplessness, chronic pain and anxiety.

Management Commentary

"Our first quarter results reflect the continued strength of our core business, led by significant growth in Dream Water® sales across both Canadian and U.S. markets, as well as delivering strategic e-commerce performance for both Dream Water® and LivRelief™. These gains reinforce our strategy of building recurring consumer demand through innovation, marketing, and channel diversification. While we experienced a temporary reduction in our licensed LivRelief™ Infused business during its transition to a new licensed distribution partner, we remain confident this segment will return to growth in the second half of the fiscal year. Overall, Delivra Health continues to achieve its goals - growing revenues, maintaining positive Adjusted EBITDA⁽¹⁾, and strengthening the foundation for sustainable long-term performance," said Gord Davey, President and Chief Executive Officer of Delivra Health. "In the second half of fiscal 2026, the Company will execute new launches with strategic customers that will add more depth and market coverage to the Company's existing portfolio of accounts, and this will accelerate our strategy of securing new retail partners and expanding Delivra Health Brands' customer base."

Financial Highlights for the Three months Ended September 30, 2025

(Expressed in thousands of Canadian dollars, except share and per share amounts)

• Net revenue: For the three months ended September 30, 2025, net revenue was $3,207 compared to $3,163 in the same period in the prior year. The $44 or 1% increase in net revenue was primarily due to an increase in sales of Dream Water® by $213 or 8% and LivRelief™ Non-Infused by $26 or 9%, offset by a reduction of $195 or 89% in licensed LivRelief™ Infused which is being planned for a relaunch starting January 2026.

• Gross profit and gross profit margin: For the three months ended September 30, 2025, the Company reported gross profit of $1,501 and a 47% gross profit margin compared to $1,598 and a 51% gross profit margin in same period last year. The reduction in gross profit and gross profit margin is attributed to higher sales fees applied to net revenue in Q1 2026 compared to same quarter last year in addition to change in customer, channel and product mix compared to same quarter last year.

• Expenses including selling, general and administrative expenses and excluding non-cash items: For the three months ended September 30, 2025, the Company reported expenses of $1,447 compared to $1,607 in the same period last year, representing a 10% net decrease. The net decrease is driven by an increase in general and administration expenses of $83, offset by a reduction in sales and marketing expenses of $243. Prior year fiscal 2025 first quarter sales and marketing expenses were higher than Q1 2026 sales and marketing expenses given that the Company released in November 2024 two major marketing campaigns, 'Shush Your Mind' for Dream Water® and 'Quiets Chronic Pain' for LivRelief™.

• Adjusted EBITDA¹: For the three months ended September 30, 2025, the Company reported a positive Adjusted EBITDA of $56 compared to $16 in the same period last year, representing a $40 year-over-year increase in Adjusted EBITDA. The increase in Adjusted EBITDA is driven by the slight increase in sales volume and lower sales and marketing expenses.

Summary of Key Financial Results

	For the three months ended September 30
($000's, except share and per share amounts)	2025	2024
Net revenue	$3,207	$3,163
Cost of sales	1,704	1,540
Inventory write-down	2	25
Gross profit	1,501	1,598
Gross profit margin	47%	51%
Expenses excluding non-cash expenses	1,447	1,607
Depreciation and amortization and share-based compensation	76	397
Profit (loss) from operations before other (expense) income	(22)	(406)
Other (expense) income	(69)	(72)
Net profit (loss)	(91)	(478)
Net profit (loss) per share - basic and diluted	(0.003)	(0.02)
Net cash provided from operating activities	(277)	(354)

 

Expenses exluding non-cash items

	For the three months ended September 30
($000's, except share and per share amounts)	2025	2024
General and administration	$1,028	$945
Sales and marketing	419	662
Total	1,447	1,607

 

Adjusted EBITDA (non-IFRS measure)⁽¹⁾

	For the three months ended September 30
($000's, except share and per share amounts)	2025	2024
Profit (loss) from operations	$(22)	$(406)
Inventory write-down	2	25
Depreciation and amortization	27	326
Share-based compensation	49	71
Adjusted EBITDA(1)	56	16

 

About Delivra Health Brands Inc.

Helping people take control of their health with alternative wellness solutions is what energizes the Delivra Health team! The Delivra Health portfolio features innovative brands like Dream Water® and LivRelief™, which deliver relief from common everyday issues like chronic pain, anxiety, and sleeplessness. Delivra Health products have allowed millions of customers to reclaim their mobility, energy, and in turn, quality of life. The websites of the Company's two subsidiaries are  Dream Water® and  LivRelief^TM. For more information, please visit  www.delivrahealthbrands.com.

Non-IFRS Measures, Reconciliation and Discussion

This press release contains references to "Adjusted EBITDA" which is a non-International Financial Reporting Standards ("IFRS") financial measure. Adjusted EBITDA is a measure of the Company's loss from operations before interest, taxes, depreciation, and amortization and adjusted for share-based compensation, common shares issued for services, fair value effects of accounting for biological assets and inventories, asset impairment and write-downs, and other non-cash items, and is a non-IFRS measure.

This measure can be used to analyze and compare profitability among companies and industries, as it eliminates the effects of financing and capital expenditures. It is often used in valuation ratios and can be compared to enterprise value and revenue. This measure does not have any standardized meaning according to IFRS and, therefore, may not be comparable to similar measures presented by other companies.

There are no comparable IFRS financial measures presented in Delivra Health's financial statements. Reconciliations of the supplemental non-IFRS measure are presented in the Company's management discussion and analysis for the three months ended September 30, 2025 (the "Q1 2026 MD&A"). This non-IFRS financial measure is presented because management has evaluated the financial results both including and excluding the adjusted items and believes that the non-IFRS financial measure presented provides additional perspective and insights when analyzing the core operating performance of the business. The Company believes that the supplemental measure provides information which is useful to shareholders and investors in understanding the Company's performance and may assist in the evaluation of the Company's business relative to that of its peers.

The non-IFRS financial measure should not be considered superior to, as a substitute for, or as an alternative to, and should be considered in conjunction with the IFRS financial measures presented in the Company's financial statements. For more information, please see "Adjusted EBITDA (non-IFRS measure)" and "Non-IFRS Measures" in the Q1 2026 MD&A, which is available under the Company's SEDAR+ profile on www.sedarplus.ca.

Notes:

1. This is a non-IFRS reporting measure. For a reconciliation of this measure to the nearest IFRS measure, see "Adjusted EBITDA (non-IFRS measure)" and "Non-IFRS Measures" in the Q1 2026 MD&A.

Cautionary Note Regarding Forward-Looking Statements

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates, and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements include, among other things, statements with respect to the Company's products offering relief from chronic pain, anxiety, and sleeplessness, impacts of the Company's latest marketing campaigns, expectations regarding increases in the Company's revenues and profitability, the Company's growth objectives, return to growth in the Company's licensed LivRelief™ Infused business, increases in the depth and market coverage of the Company's portfolio, expansion of the Company's customer base, the Company's ability to secure new retail partners, growth in new markets, and new launches and distribution channels.

These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company to materially differ from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include: fluctuations in general macroeconomic conditions; fluctuations in securities markets; expectations regarding the size of the cannabis markets where the Company operates; changing consumer habits; the ability of the Company to successfully achieve its business objectives; plans for expansion; political and social uncertainties; inability to obtain adequate insurance to cover risks and hazards; employee relations and the presence of laws and regulations that may impose restrictions on cultivation, production, distribution, and sale of cannabis and cannabis-related products in the markets where the Company operates. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. The Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

Additional information regarding this and other risks and uncertainties relating to the Company's business are contained under the heading "Risk Factors" in the Company's annual information form dated March 2, 2021, and under the heading "Risks and Uncertainties" in the Q1 2026 MD&A filed under the Company's profile on SEDAR+ at www.sedarplus.ca.

Neither TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accept responsibility for the adequacy or accuracy of this release.

Investor Relations:
Jack Tasse
Chief Financial Officer
IR@delivrahealth.com
1-877-915-7934

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/273751

FAQ

What were Delivra Health (DHBUF) Q1 2026 revenues and gross profit?

Q1 2026 net revenue was $3.207M and gross profit was $1.501M (47% margin).

How did Dream Water and LivRelief perform in Q1 2026 for DHBUF?

Dream Water US/Canada sales +8% YoY and Dream Water e-commerce +74% YoY; LivRelief e-commerce +16% YoY.

What happened to licensed LivRelief Infused sales in Q1 2026 for DHBUF?

Licensed LivRelief Infused sales declined by 89% ($195k) while transitioning to a new distribution partner; relaunch planned Jan 2026.

Did Delivra Health (DHBUF) report positive EBITDA in Q1 2026?

Yes, Adjusted EBITDA was $56k in Q1 2026 versus $16k a year earlier.

How did Delivra Health's cash flow from operations look in Q1 2026?

Net cash provided from operating activities was a negative $277k for Q1 2026.