Red Light Holland Reports Second Quarter 2026 Results and Provides Corporate Update

Rhea-AI Summary

Red Light Holland (OTCQB:TRUFF) reported Q2 2026 results and a corporate update for the quarter ended September 30, 2025. Key metrics: Revenue $0.754M (down 44.9% YoY), Gross profit $0.327M (down 68.7% YoY), Adjusted EBITDA loss $0.785M (worse 61.9% YoY), Cash $10.226M, Total assets $19.018M.

Operational highlights include expanded U.S. retail distribution with Albertsons/Safeway, new R&D milestones with DEA-registered Irvine Labs (5kg shipment; potency testing compatible with manufacturing), ASU collaboration, and appointment of Dr. Robin Carhart-Harris as scientific advisor. Company pursuing M&A, streamlining, and a Bitcoin allocation up to $2M.

Positive

• Irvine Labs confirmed potency compatibility and processed a 5kg shipment
• Expanded U.S. retail distribution with Albertsons/Safeway
• Cash balance of $10.226M at quarter end
• Formal interest to buy Peterborough farmland for $2.5M–$2.6M

Negative

• Revenue down 44.9% YoY to $0.754M
• Gross profit down 68.7% YoY to $0.327M
• Adjusted EBITDA loss worsened 61.9% YoY to $0.785M
• Suspension of shiitake production at AEM New Brunswick (operational disruption)

Toronto, Ontario--(Newsfile Corp. - December 1, 2025) - Red Light Holland Corp. (CSE: TRIP) (FSE: 4YX) (OTCQB: TRUFF) ("Red Light Holland" or the "Company"), an Ontario-based corporation engaged in the production, growth, and sale of functional mushrooms, mushroom home grow kits in North America and Europe, and a premium brand of psilocybin truffles to the legal recreational market within the Netherlands, in compliance with all applicable laws, announces its financial and operational results for the three and six months ended September 30, 2025. All figures are reported in Canadian dollars. The Company's full set of the unaudited condensed interim consolidated financial statements and accompanying management's discussion and analysis can be accessed by visiting the Company's website at www.RedLight.co and its profile page on SEDAR+ at www.sedarplus.ca.

Key Updates:

Research and Development (Psilocybin):

• Red Light Holland's FDA-Compliant, DEA-Registered Partner Irvine Labs: In August 2025, Irvine Labs completed the initial potency testing which confirmed that our naturally derived Psilocybin truffles are compatible with the manufacturing processes being developed for potential medical grade applications.

• In November 2025, Irvine Labs received a second larger shipment of 5kg of natural Psilocybin products, which marks a major milestone following the initial shipment in July. This shipment was processed under Irvine Labs' existing 2025 DEA quota allocation and will support expanded R&D activities, including further validation of proprietary dehydration and packaging processes designed to significantly extend shelf life while maintaining product integrity.

• Red Light Holland and Irvine Labs continue to work collaboratively toward developing processes for the commercial manufacture of microdosing capsules derived from naturally occurring psilocybin truffles, aimed at emerging therapeutic markets, government-funded pilot programs, and clinical trials.

• ASU Partnership: Collaboration with Arizona State University on the Psychedelic Genome Project led by Dr. Candace Lewis to better understand the genetic factors influencing psilocybin response.

• Scientific Advisory Appointment: Dr. Robin Carhart-Harris, a globally recognized leader in psychedelic neuroscience, joined as Scientific Advisor to guide R&D, policy strategy, and potential regulatory pathways.

• Future R&D Projects: The Company is also looking to commit more financial resources to explore potential opportunities in the field of Psilocybin distribution, Psilocybin drug development, and Psilocybin drug discovery.

Wholesale and CPG:

• SR Wholesale: The Company's wholly owned Netherlands subsidiary, SR Wholesale continues to perform well and generates sales revenue by focusing on the sale of the Company's farm grown psilocybin Truffles to over 125 retail stores with expansion of product lines and well-established distribution channels. The business segment continues to operate efficiently despite the slowing of tourism in the Netherlands.

• Albertsons Breakthrough: Expanded partnership with Albertsons following our entry into the U.S. retail market under the Safeway banner with Happy Caps Mushroom Home Grow Kits.

• Happy Caps Innovation: Health Canada-approved Functional Mushroom Gummies (NPN #80137179) launched and are now available on Amazon. The Functional mushroom gummies have also successfully passed three months of accelerated and regular stability lab tests conducted and accredited by Canadian Lab partner, CCrest Laboratories.

• Pilot Program: Launched programs in London's Real Canadian Superstore ("RCSS") for our Functional mushroom gummies, and received indication that further expansion for distribution points in RCSS is a likely possibility.

M&A Activity:

• Management is actively engaged in preliminary discussions and evaluations of potential M&A opportunities, with a pivot on strategy, with more emphasis on research-driven businesses and assets that can strengthen our R&D initiatives. There can be no assurance that these discussions will result in a completed transaction.

Bitcoin Strategy:

• Bitcoin Strategy: Red Light Holland announced a Bitcoin strategy allocating up to $2 million in Bitcoin-related assets, led by Cryptocurrency Advisor Scott Melker. This initiative reflects our alignment with decentralized systems that echo psilocybin's ethos of empowerment, sovereignty, and innovation. After experiencing institutional debanking in Canada, the Company has continued to explore Bitcoin as a financial infrastructure alternative for operational flexibility.

Challenges and Opportunities:

• Happy Caps: Sales decreased in Q2 2026 but are anticipated to rebound for the holidays season following the expanded partnership with Albertsons.
• AEM New Brunswick: Sales decreased in Q2 2026 due to challenges facing the overall mushroom industry. The Company and its farming minority partners have decided to suspend the Shiitake mushroom production and sales at the AEM Farm on or about December 15, 2025. The Company and its minority partners are weighing options with the facility and will update its shareholders upon future plans.
• AEM Ontario (Peterborough): The Company remains in advanced discussions with a group who have formally confirmed its interest to purchase 100% of the rights to the farmland, plans and permits, for an estimated price of $2.5m to $2.6m. A due diligence phase is expected in the near future.
• Mini-Champ: Sales decreased in Q2 2026 in the Netherlands due to an apparent slowdown in consumers' spending habits. The Company is monitoring its long-term vision for MiniChamp.

Operational Streamlining and Strategic Priorities:

Management is looking at steps to streamline operations and reinforce cost discipline across the Company's portfolio, including but not limited to, divesting certain non-core assets, suspending select underperforming activities, and evaluating additional opportunities to simplify the Company's operating footprint. These actions are designed to enhance financial flexibility and ensure that resources are deployed responsibly. With this improved flexibility, the Company has begun to broadly assess several potential areas of future focus, which may include expanded consideration of early-stage research and development initiatives related to Psilocybin.

Looking Ahead:

Red Light Holland remains optimistic about the future. With a diversified foundation, continuous re-evaluation, and a disciplined focus on fiscal responsibility, the Company believes it is well positioned. Furthermore, our significant cash and asset position places the Company in a particularly strong and attractive strategic position. We are seeing increasing inbound interest from external companies seeking growth capital or operational support. This level of unsolicited attention underscores Red Light Holland's strengthened market position and the value external parties see in partnering with us.

CEO Statement:

"Compared to Q2 2025, which was the strongest in our history, this quarter has been focused on taking a disciplined look at our priorities while continuing to execute across the entire business," said Todd Shapiro, CEO and Director of Red Light Holland. "While we encountered some anticipated challenges within our farming operations and CPG sales, affected in part by inflation, retail softness, perceptions around potential tariff impacts, and broader macroeconomic volatility, we remain in a strong financial and operational position, supported by ongoing discipline in cash spending and reduced G&A."

"We continue to evaluate strategic M&A opportunities from a position of strength at a time when many companies across the sector are facing significant financial pressure. As we evolve further into an R&D-driven organization with a solid balance sheet, we're also seeing increasing inbound interest from groups seeking collaboration or access to capital, further validating Red Light Holland's reputation as a serious, well-capitalized player."

"Looking ahead, emerging global opportunities in psilocybin research and regulatory advancement are becoming increasingly compelling. As these markets develop, we are prioritizing R&D initiatives that we believe will drive long-term value creation and position the Company for the next phase of responsible and impactful growth."

Key Financial Highlights for Q2 2026 vs Q2 2025:

• Total Cash Balance: $10.226M ($11.454M as at June 30, 2025).
• Total net use of cash for the Three Months ended September 30, 2025: $1.228M (down 8.5% from $1.342M in Q2 2025).
• Revenue for Three Months ended September 30, 2025: $0.754M (down 44.9% from $1.368M in Q2 2025).
• Gross Profit for Three Months ended September 30, 2025: $0.327M (down 68.68% from $0.552M in Q2 2025).
• Adjusted EBITDA^[1] Loss for Three Months ended September 30, 2025: $0.785M (Adjusted EBITDA¹ Loss up 61.9% from $0.485M from Q2 2025).
• Total Assets: $19.018M ($20.140M as at June 30, 2025).
• Excess Cash: Invested in additional Bitcoin ETFs and private investments, with excess funds parked in high-interest savings vehicles.
• Use of cash in Q2 2026 relates to the Company's purchase of new investments for $463K and incurrence of overheads from both the Netherlands' and Canadian operations.

About Red Light Holland:
Red Light Holland is an Ontario-based corporation engaged in the production, growth, and sale of functional mushrooms and mushroom home grow kits in North America and Europe, and a premium brand of psilocybin truffles to the legal recreational market within the Netherlands, in compliance with all applicable laws.

For additional information on the Company:
Todd Shapiro
Chief Executive Officer & Director
Tel: 647-204-7129
Email: todd@redlight.co
Website: www.RedLight.co

Cautionary Statement Regarding Forward-Looking Statements

This press release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current conditions but instead represent only the Company's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company's control. Often, but not always, forward-looking statements and information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or its respective subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained in this news release. Examples of such information include statements with respect to: the expansion and validation of proprietary R&D processes for psilocybin products; the development and commercialization of microdosing capsules for therapeutic markets, pilot programs, and clinical trials; the Company's intention to allocate additional financial resources to psilocybin distribution, drug development, and discovery; the evaluation and potential completion of M&A transactions, particularly with research-driven businesses; anticipated sales rebounds for specific business units and the suspension or sale of certain operations; the Company's ongoing operational streamlining, cost discipline, and potential divestiture of non-core assets; the Company's assessment of future strategic priorities, including early-stage R&D initiatives; the Company's establishment and expansion of key partnerships; and the Company's future investment in cryptocurrencies.

Forward-Looking information in this news release are based on certain assumptions and expected future events, namely: continued regulatory approval of the Company's activities by relevant authorities; the ability to maintain prudent cash management and financial stability; the successful advancement of R&D efforts and commercialization of new products; the ability to identify, negotiate, and complete M&A transactions on favorable terms; the realization of anticipated benefits from key partnerships and operational changes; market conditions, including consumer demand, competitive landscape, and regulatory developments, remaining within expected parameters; the availability of qualified personnel and resources to support expanded operations and new initiatives; the Company will advance its research and development efforts; the Company will maintain its strategic commitment to growth while maintaining strong cash management; the Company will continue to focus on expanding brand recognition and overall retail distribution channels; the Company will continue to focus on financial stability and long-term profitability; the Company will continue to focus on advocacy for the legalization of, and adult access to, psilocybin; the Company will continue its unwavering commitment to sustainable growth, financial prudence, and long-term strategy; the Company will continue to grow globally; the Company will successfully streamline its operations; there will be positive regulatory changes and modern medicinal advancements in psychedelics; and the Company will invest in cryptocurrencies.

Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information, namely: regulatory changes or failure to obtain/maintain necessary approvals; inability to achieve anticipated R&D milestones or commercialize new products; failure to identify or complete M&A transactions, or to realize expected synergies; adverse market conditions, including decreased consumer demand or increased competition; operational challenges, including the inability to streamline operations or divest non-core assets as planned; risks related to the integration of acquired businesses or the suspension/sale of operations; changes in financial markets, access to capital, or macroeconomic conditions; unforeseen events impacting supply chains, personnel, or business continuity; the Company's inability to continue advocating for the legalization of, and adult access to, psilocybin; the Company's inability to increase its brand recognition and/or overall retail distribution channels; the Company's inability to maintain its prudent cash use; the Company will be unable to focus on financial stability and/or long-term profitability; the Company will be unable to focus on advocacy for the legalization of, and/or adult access to, psilocybin; the Company's inability to grow globally; the Company will not yield the intended benefits from its key partnerships; and the Company will not invest in cryptocurrencies.

Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws.

---

^[1] Earnings before interest, taxes, depreciation, and amortization ("EBITDA") and adjusted EBITDA. These measures do not have a standardized meaning prescribed by International Financial Reporting Standards ("IFRS") and are, therefore, unlikely to be comparable to similar measures presented by other issuers. Non-IFRS measures provide investors with a supplemental measure of the Company's operating performance and, therefore, highlight trends in the Company's core business that may not otherwise be apparent when relying solely on IFRS measures. Management uses non-IFRS measures in measuring the financial performance of the Company.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/276513

FAQ

What were Red Light Holland (TRUFF) Q2 2026 revenue and adjusted EBITDA results?

Q2 2026 revenue was $0.754M (down 44.9% YoY) and adjusted EBITDA loss was $0.785M (worse 61.9% YoY).

How much cash did Red Light Holland (TRUFF) hold at September 30, 2025?

The company held $10.226M in cash at quarter end.

What R&D progress did Red Light Holland (TRUFF) report in Q2 2026?

Irvine Labs completed potency testing, processed a second 5kg shipment, and work continues on manufacturing processes for microdosing capsules.

What retail expansion did Red Light Holland (TRUFF) announce in Q2 2026?

The company expanded U.S. retail distribution under the Safeway banner via an Albertsons partnership for Happy Caps home grow kits.

Is Red Light Holland (TRUFF) selling any farmland and for how much?

The company said a buyer confirmed interest to purchase Peterborough farmland and associated rights for approximately $2.5M–$2.6M, pending due diligence.

What operational changes did Red Light Holland (TRUFF) disclose in Q2 2026?

Management announced streamlining measures, potential divestitures of non-core assets, and suspension of select underperforming activities to improve financial flexibility.