Greenway Announces Audited Year End Financial Results
Rhea-AI Summary
Greenway Greenhouse Cannabis (CSE:GWAY, OTCQB:GWAYF) reported audited results for the year ended March 31, 2026. Net revenue was $7.4 million, down from $8.9 million, as volumes moderated, while the average net selling price per gram rose 21% to $1.60.
Gross margin before inventory impairment and IFRS fair value adjustments improved to 29% from 18%, but fell to 15% after a one-time, non-cash inventory impairment of about $1.1 million on legacy cultivars. Adjusted EBITDA was positive for a second year at $1.1 million (vs. $1.2 million). Net loss widened to $2.6 million, largely due to the impairment.
Internationally bound flower sales grew to about 50% of total flower sales in Q4, and working capital excluding related-party balances increased to roughly $4.5 million from $4.0 million. According to Greenway, the company is prioritizing premium cultivars, cost discipline, and expansion in international medical cannabis markets heading into Fiscal 2027.
Positive
- Average selling price up 21% to $1.60/gram in Fiscal 2026
- Gross margin before impairments improved to 29% from 18% year over year
- Adjusted EBITDA positive at $1.1 million for a second consecutive year
- International flower sales reached ~50% of total flower sales in Q4
- Working capital (ex-related parties) increased to ~$4.5 million from $4.0 million
Negative
- Net revenue declined to $7.4 million from $8.9 million year over year
- Net loss increased to $2.6 million from $2.1 million
- Inventory impairment one-time non-cash charge of approximately $1.1 million
- Gross margin after impairment reduced to 15% for Fiscal 2026
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Achieves Record Average Selling Price, Improved Underlying Margins and Continued Expansion of International Sales
During Fiscal 2026, Greenway continued executing its strategy of increasing exposure to higher-value domestic and international cannabis markets, resulting in a
Fiscal 2026 Highlights
- Net revenue of
$7.4 million $8.9 million - Average net selling price increased
21% to$1.60 $1.32 - Gross margin before inventory impairment and IFRS fair value adjustments improved to
29% , compared to18% in Fiscal 2025. - Generated positive EBITDA for the second straight Fiscal Year, with Adjusted EBITDA of
$1.1 million $1.2 million - Internationally bound flower sales continued to expand, increasing to approximately
50% of total flower sales in the fourth quarter. This revenue is generated through domestic companies exporting to international medical cannabis markets. - Excluding related-party balances, the Company maintained a positive working capital balance of approximately
$4.5 million $4.0 million - Continued strengthening relationships with international medical cannabis partners while focusing production on premium cultivars with stronger long-term pricing characteristics.
"Fiscal 2026 was a year of transition for Greenway as we continued repositioning our business toward higher-value markets," said Jamie D'Alimonte, Chief Executive Officer of Greenway Greenhouse Cannabis Corporation.
"While lower sales volumes impacted revenue during the year, we achieved our highest average selling price as a public company, improved our underlying operating margins, and continued expanding our international business, which now represents approximately half of our current sales. We also made the decision during the fourth quarter to take a conservative approach to valuing certain legacy inventory that no longer reflects our production strategy. Although this resulted in a significant charge recognized, we believe it better positions Greenway moving forward as we continue focusing on premium genetics, disciplined cost management and growing our presence in international medical cannabis markets."
Financial Summary
Net revenue for Fiscal 2026 was
The Company reported a gross margin before inventory impairment and IFRS fair value adjustments of
Adjusted EBITDA of to
Net loss for the year was
During the fourth quarter, the Company completed a comprehensive review of inventory values in response to changing wholesale cannabis market dynamics, recording a one-time, non-cash inventory impairment of approximately
Positioning for Fiscal 2027
Greenway believes its strategic initiatives undertaken throughout Fiscal 2026 have strengthened the Company's long-term competitive position.
Management remains focused on:
- Continuing expansion of internationally bound medical cannabis sales, through domestic companies exporting to international markets.
- Optimizing product mix toward premium cultivars with stronger pricing;
- Maintaining disciplined cost controls and operational efficiencies;
- Building long-term relationships with domestic and international customers; and
- Creating sustainable shareholder value through profitable growth.
The Company believes continued demand in international medical cannabis markets, combined with its greenhouse cultivation platform and disciplined operating model, provides opportunities for continued growth in Fiscal 2027.
A copy of the audited annual financial statements for the year ended March 31, 2026 (prepared in accordance with IFRS Accounting Standards ("IFRS")) and the related Management's Discussion and Analysis are available under the Company's profile on www.sedarplus.ca.
Non-IFRS Measures
Management uses a non-IFRS measure to assess the Company's performance. Non-IFRS measures do not have any standardized meaning under IFRS and are not a measure of financial performance under IFRS, and therefore, may not be comparable to similar measures presented by other companies. Please refer to the Company's Management's Discussion and Analysis for an explanation of the composition of Adjusted EBITDA, an explanation of how it provides useful information to an investor and a quantitative reconciliation to the most directly comparable financial measure under IFRS, all of which is hereby incorporated by reference in this press release.
Reconciliations of Non-IFRS Measures
The following table reconciles the non-IFRS measure to the most comparable IFRS measure for the year ended March 31, 2026. This measure does not have any standardized meaning under IFRS and is not a measure of financial performance under IFRS, and therefore, may not be comparable to similar measures presented by other companies.
For the twelve months ended March 31, 2026 | ||||
Net Loss and Comprehensive Loss | ||||
Amortization - Cost of sales | 964,633 | |||
Inventory impairment | 1,074,698 | |||
Fair value adjustment on sale of inventory | 965,465 | |||
Fair value adjustment on growth of biological assets | (957,266) | |||
Amortization – Operating expenses Shares issued for services rendered | 331,532 152,550 | |||
Interest and accretion expense | 1,225,154 | |||
Other income | (76,297) | |||
Interest income | (31,773) | |||
Adjusted EBITDA | $ 1,086,076 | |||
This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in
Greenway Greenhouse Cannabis Corporation is a federally licensed cultivator for the Canadian cannabis marketplace. Greenway is headquartered in Kingsville, Ontario, and leverages its agriculture and cannabis expertise in its aspiration to be a leading cannabis cultivator in Canada. More information can be found on Greenway.ca and updates can be followed on Instagram, X , Facebook, and LinkedIn.
The CSE has in no way passed upon the merits of the business of the Company and has neither approved nor disapproved the contents of this news release and accepts no responsibility for the adequacy or accuracy hereof.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements that constitute forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian securities legislation. All statements in this news release that are not purely historical statements of fact are forward-looking statements, and the Company's beliefs, plans, expectations, future, strategy, objectives, goals and targets, the development of future operations, and orientations regarding the future as of the date of this news release. Although the Company believes that such statements are reasonable and reflect expectations of future developments and other factors which management believes to be reasonable and relevant, the Company can give no assurance that such expectations will prove to be correct. Forward- looking statements are typically identified by words such as: "believes", "expects", "aim", "anticipates", "intends", "estimates", "plans", "may", "should", "would", "will", "potential", "scheduled" or variations of such words and phrases and similar expressions, which, by their nature, refer to future events or results that may, could, would, might or will occur or be taken or achieved.
Forward-looking statements involve known and unknown risks, assumptions, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements, and includes those risks described in the Company's final prospectus dated September 3, 2021, a copy of which is available under the Company's profile at www.sedarplus.ca. Forward-looking statements are made as of the date of this news release and, unless required by applicable law, the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in these forward-looking statements.
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SOURCE Greenway Greenhouse Cannabis Corporation