Vext Reports Q3 2026 Financial Results; Record Quarterly Revenue of $14.9 Million; Operating Cash Flow of $2.4 Million
Operating cash flow increased as inventory converted to cash, while the quarterly net loss widened and adjusted earnings declined.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Vext Science (VEXTF) reported record quarterly revenue of $14.9 million for the third quarter ended September 30, 2026. Sales rose 23% sequentially and 18% year-over-year, with Ohio revenue up 37% to $10.9 million. Operating cash flow reached $2.366 million, versus $1.182 million in Q2. Net loss widened to $4.884 million from $2.628 million a year earlier, while adjusted EBITDA, a non-IFRS earnings measure, fell to $195,000 from $1.513 million.
Vext bought its Jackson cultivation and manufacturing property for $6.0 million using refinanced loans at 8.64%. It extended $4.1 million of seller notes to January 2029. The company expects Columbus and Amelia dispensaries to open in 2027, with Amelia subject to regulatory approvals. After quarter-end, Vext listed its Phoenix manufacturing property for sale, began reducing Arizona manufacturing to packaging for its own stores and began closing its Kentucky CBD operation.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointRecord Q3 revenue of $14.9 million rose 23% sequentially and 18% year-over-year.
- Moderate pointOperating cash flow of $2.366 million increased from $1.182 million sequentially and $1.259 million year-over-year.
- Moderate point$6.0 million Jackson property acquisition replaced a lease with ownership in August. 18% of market cap
- Moderate point$4.1 million seller-note maturity extended from December 31, 2026, to January 15, 2029. 12% of market cap
- Minor pointOhio revenue of $10.9 million increased 37% year-over-year, led by Fairfield and company-grown flower.
4 minor points
- Minor pointCash flow margin reached 16%, versus 10% in both Q2 2026 and Q3 2025.
- Minor pointArizona dispensary sales rose 7.6% sequentially, ending five quarterly declines as purchased flower lowered shelf prices.
- Minor point. Forward-looking: it has not happened yet and may not happen.Columbus dispensary construction is underway, with the seventh Ohio location on track for Q1 2027.
- Minor point. Forward-looking: it has not happened yet and may not happen.Amelia received a provisional dual-use license; Vext expects its eighth Ohio dispensary by Q3 2027-end.
Negative
- Moderate pointQ3 net loss widened to $4.884 million, versus $315,000 sequentially and $2.628 million year-over-year.
- Moderate pointAdjusted EBITDA fell to $195,000, versus $3.435 million sequentially and $1.513 million year-over-year; year-to-date totaled $6.4 million.
- Moderate pointUncertain tax liability rose to $11.5 million from $8.1 million at December 31, 2025; none is assessed or due.
- Moderate pointJackson acquisition financing carries an 8.64% fixed rate through refinancing of existing loans.
- Moderate pointPhoenix manufacturing volume no longer covers costs; Vext listed the property for sale and began scaling back operations.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Columbus land purchase requires $1.0 million, with closing expected in November 2026. 3% of market cap
10 minor points
- Minor pointAdjusted EBITDA margin fell to 1.3%, versus 28.3% sequentially and 11.9% year-over-year.
- Minor pointEBITDA fell to $293,000, versus $4.776 million sequentially and $1.782 million year-over-year.
- Minor pointNet interest expense increased to $932,000, versus $825,000 sequentially and $647,000 year-over-year.
- Minor pointIncome tax expense reached $749,000, versus $249,000 sequentially and a $243,000 benefit year-over-year.
- Minor pointJackson dispensary closed September 1–17 at the Ohio regulator's request.
- Minor pointVapen products faced an administrative hold September 2–October 14, following Vext's September 1 voluntary quarantine.
- Minor pointInventory sell-through weighed on quarterly margin, alongside the Jackson closure and Vapen hold, Vext said.
- Minor pointKentucky CBD closure began in October 2026.
- Minor point. Forward-looking: it has not happened yet and may not happen.Amelia opening remains subject to regulatory approvals.
- Minor point. Forward-looking: it has not happened yet and may not happen.Operational effects will carry into Q4, Vext expects, as operations normalize after the hold and Phoenix scales back.
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Record quarterly revenue of
$14.9 million , up23% from Q2 2026 and18% year-over-year. - Ohio revenue up
37% year-over-year to$10.9 million , led by Fairfield and Company-grown flower. - Operating cash flow of
$2.4 million , double Q2 2026, as first-half inventory converted to cash. - Net loss of
$(4.9) million and Adjusted EBITDA* of$0.2 million ; year-to-date Adjusted EBITDA* of$6.4 million .
Vancouver, British Columbia--(Newsfile Corp. - November 3, 2026) - Vext Science, Inc. (CSE: VEXT) (OTCQX: VEXTF) ("Vext" or the "Company"), a U.S.-based specialty retailer operating in the regulated cannabis markets of Ohio and Arizona, today reported its financial results for the period ended September 30, 2026. All currency references used in this news release are in U.S. currency unless otherwise noted.
Summary Financial Results (in thousands of US dollars)
| Q3 2026 | Q2 2026 | Q3 2025 | |||||||
| Sales | $ | 14,899 | $ | 12,123 | $ | 12,670 | |||
| EBITDA* | $ | 293 | $ | 4,776 | $ | 1,782 | |||
| Adjusted EBITDA* | $ | 195 | $ | 3,435 | $ | 1,513 | |||
| Adjusted EBITDA Margin (%)* | |||||||||
| Net cash provided by operating activities | $ | 2,366 | $ | 1,182 | $ | 1,259 | |||
| Cash Flow Margin (%)* |
* See "Non-IFRS Financial Measures" below for more information regarding Vext's use of non-IFRS financial measures and other reconciliations.
Third Quarter 2026 Operational Highlights
- Fairfield delivered its first full quarter, driving most of the sequential growth in Ohio retail sales, and Company-grown flower lifted Ohio wholesale revenue.
- Arizona dispensary sales grew for the first time after five quarterly declines. With purchased flower lowering shelf prices, Arizona dispensary sales rose
7.6% from Q2 2026. The last Arizona cultivation inventory was sold in the quarter. - Seventh Ohio dispensary on track for Q1 2027. Construction is underway in Columbus.
- Acquired the Jackson, Ohio cultivation and manufacturing property in August for
$6.0 million , replacing a lease, funded through a refinancing of existing loans at a fixed rate of8.64% . - Temporary Ohio regulatory disruptions. The Jackson dispensary was closed September 1 to 17 at the request of the Ohio Division of Cannabis Control ("DCC"). The Company voluntarily quarantined Vapen-branded products on September 1, and the DCC placed them on administrative hold from September 2 to October 14, when it released the hold based on testing data and analysis.
Management Commentary
Eric Offenberger, CEO of Vext, commented: "Ohio drove the quarter, with revenue up
Mr. Offenberger continued: "Every decision we made this quarter came back to putting our capital where it earns the best return. In Ohio, that meant buying the Jackson facility that supplies our stores, so we now own it rather than lease it. In Arizona, where our manufacturing plant no longer has the volume to cover its costs, it meant considering other options and, following the quarter, we listed the property for sale and began focusing the operation on packaging for our own dispensaries. Some of what we worked through this quarter will carry into the fourth quarter as we return to normal operations after the hold and scale back Phoenix, but the direction is clear: more of our own product on Ohio shelves, our seventh and eighth Ohio dispensaries expected to open in Columbus and Amelia in 2027, and growth primarily funded by the cash this business generates."
Subsequent Events
- On October 1, 2026, the Company replaced
$4.1 million of App Pharm seller notes, originally due December 31, 2026, with unsecured notes maturing January 15, 2029. - In October 2026, the Company listed its Phoenix, Arizona manufacturing property for sale and began reducing its Arizona manufacturing operation to packaging for its own dispensaries.
- In October 2026, the Company began closing its Kentucky CBD operation.
- On October 15, 2026, the Company agreed to purchase the land for its seventh Ohio dispensary in Columbus for
$1.0 million , with the purchase expected to close in November 2026. - On October 28, 2026, the Company received a provisional dual-use license from the DCC for its eighth Ohio dispensary, in Amelia, expected to open by the end of the third quarter of 2027, subject to regulatory approvals.
Q3 2026 Financial Results Conference Call
The Company will host a conference call and webcast on the same day at 8:00 am ET to discuss the financial results for the third quarter of 2026.
CONFERENCE CALL DETAILS
Date: November 3, 2026 | Time: 8:00 am ET
Participant Dial-in: 1-833-752-3966 or 1-647-849-3159
Replay Dial-in: 1-855-669-9658 or 1-412-317-0088
Conference ID: 10212942
Playback #: 8734407 (Expires on November 17, 2026)
Listen to webcast: https://www.gowebcasting.com/15200
A replay of the conference call and webcast will be available on Vext's investor website following the conclusion of the call.
For more details, visit Vext's investor website or contact the IR team at investors@vextscience.com.
Uncertain Tax Position and Income Tax Payable
As at September 30, 2026, the Company has recognized an uncertain tax position ("UTP") liability of
The United States Drug Enforcement Administration issued a final order rescheduling certain cannabis products to Schedule III (the "Final Order"). The Final Order includes a non-binding recommendation regarding potential retrospective tax treatment under Section 280E. If implemented, this could materially reduce a portion of the recognized uncertain tax position. The ultimate impact remains uncertain and subject to ongoing evaluation, and no implementing guidance has been issued; accordingly, no impact has been recognized in the financial statements as at September 30, 2026. The Company will evaluate the impact, if any, in future reporting periods.
For additional details, please refer to the Company's condensed consolidated interim financial statements (including the notes thereto) and MD&A filed on SEDAR+.
Non-IFRS Financial Measures
This news release contains certain "non-IFRS financial measures" (equivalent to "non-GAAP financial measures", as such term is defined in National Instrument 52-112 - Non-GAAP and Other Financial Measures Disclosure ("NI 52-112")), "non-IFRS ratios" (equivalent to "non-GAAP ratios", as such term is defined in NI 52-112), or "supplementary financial measures" (as such term is defined in NI 52-112), which are described in further detail below. These financial measures do not have a standardized definition under IFRS, nor are they calculated or presented in accordance with IFRS and may not be comparable to similar measures presented by other companies. The Company has provided these financial measures as supplemental information and in addition to the financial measures that are calculated and presented in accordance with IFRS. The Company believes that these supplemental financial measures provide a valuable additional measure to use when analyzing the operating performance of the business. These supplemental financial measures should not be considered superior to, as a substitute for or as an alternative to, and should only be considered in conjunction with, the IFRS financial measures presented herein.
The Company defines Cash Flow Margin by dividing Net cash provided by operating activities by Revenue. The Company believes that this measure provides investors with insight into the Company's ability to generate cash from its revenue base. It is used by the Company to assess operating efficiency and liquidity performance without the impact of financing or investing activities. The calculation of Cash Flow Margin is as follows:
| Q3 2026 | Q2 2026 | Q3 2025 | |||||||
| Net cash provided by operating activities (in thousands of US dollars) | $ | 2,366 | $ | 1,182 | $ | 1,259 | |||
| Revenue (in thousands of US dollars) | $ | 14,899 | $ | 12,123 | $ | 12,670 | |||
| Cash Flow Margin (%) |
The Company defines EBITDA as earnings before interest, taxes, depreciation and amortization. The Company defines "Adjusted EBITDA" as net income (loss) from operations, as reported, before interest and tax, adjusted to exclude extraordinary items, non-recurring items, other non-cash items, including stock-based compensation expense, depreciation and amortization, foreign exchange and acquisition related costs, if applicable. The Company defines "Adjusted EBITDA Margin" as Adjusted EBITDA divided by Sales.
The Company believes that these measures are useful financial metrics as they assist in determining the ability to generate cash from operations. Investors should be cautioned that EBITDA and Adjusted EBITDA should not be construed as an alternative to net earnings or cash flows as determined under IFRS. The reconciling items between net earnings, EBITDA, and Adjusted EBITDA are as follows:
| (in thousands of US dollars) | Q3 2026 | Q2 2026 | Q3 2025 | ||||||
| Revenue | $ | 14,899 | $ | 12,123 | $ | 12,670 | |||
| Net Income after taxes | (4,884 | ) | (315 | ) | (2,628 | ) | |||
| Interest (Net) | 932 | 825 | 647 | ||||||
| Income Taxes | 749 | 249 | (243 | ) | |||||
| Depreciation & Amortization | 3,496 | 4,017 | 4,006 | ||||||
| EBITDA | 293 | 4,776 | 1,782 | ||||||
| Share-based compensation | 1 | 2 | 11 | ||||||
| Change in FV of debt | — | 145 | 846 | ||||||
| Change in FV of Biological | 180 | (1,373 | ) | (968 | ) | ||||
| Miscellaneous (income) expense | (279 | ) | (115 | ) | (158 | ) | |||
| Adjusted EBITDA | $ | 195 | $ | 3,435 | $ | 1,513 | |||
| Adjusted EBITDA Margin (%) |
About Vext Science, Inc.
Vext Science, Inc. (CSE: VEXT) (OTCQX: VEXTF) is a specialty retailer operating in the regulated cannabis markets of Ohio and Arizona. The Company owns its dispensaries and the majority of its real estate, supplying its shelves from its own cultivation and manufacturing where integration improves retail economics, and through third-party sourcing where it does not. Vext generates among the highest free cash flow margins in the U.S. retail cannabis industry1 and applies a disciplined capital allocation framework, directing capital to its highest-returning uses while building long-term shareholder value.
Vext Science, Inc. is listed on the Canadian Securities Exchange under the symbol VEXT and trades on the OTCQX market under the symbol VEXTF. Learn more at www.vextscience.com and connect with Vext on Twitter/X and LinkedIn.
Forward-Looking Statements
Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in Vext's periodic filings with Canadian securities regulators. When used in this news release, words such as "will, could, plan, estimate, expect, intend, may, potential, believe, should," and similar expressions, are forward-looking statements.
Forward-looking statements may include, without limitation, statements regarding future developments and the business and operations of Vext, including but not limited to the Company's expansion in Ohio and the opening of its seventh and eighth Ohio dispensaries, the rebalancing of its Ohio store assortment, the transitional nature of conditions affecting its results, the sale of the Phoenix property, the reduction of its Arizona manufacturing operation and the closure of the Kentucky CBD operation, the repayment and refinancing of its notes payable, the potential change to the Company's UTP position, and the receipt of applicable regulatory approvals, all of which are subject to the risk factors contained in Vext's continuous disclosure documents filed on SEDAR+ at www.sedarplus.ca.
Although Vext has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: dependence on obtaining regulatory approvals; being engaged in activities currently considered illegal under U.S. Federal laws; change in laws; reliance on management; requirements for additional financing; competition; hindered market growth and state adoption due to inconsistent public opinion and perception of the medical-use and adult-use marijuana industry; delays in construction, permitting or the receipt of local approvals; and regulatory or political change.
There can be no assurance that such information will prove to be accurate or that management's expectations or estimates of future developments, circumstances or results will materialize. Because of these risks and uncertainties, the results or events predicted in these forward-looking statements may differ materially from actual results or events.
Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this release. Vext disclaims any intention or obligation to update or revise such information, except as required by applicable law, and Vext does not assume any liability for disclosure relating to any other company mentioned herein.
The Canadian Securities Exchange has not reviewed, approved or disapproved the content of this news release.
Eric Offenberger
Chief Executive Officer
844-211-3725
For further information:
Jonathan Ross, Vext Investor Relations
jon.ross@loderockadvisors.com
416-244-9851
SOURCE: Vext Science, Inc.
1 Source: Public company filings, FY2025. Free cash flow is a non-IFRS financial measure defined as cash from operations less capital expenditures. Free cash flow margin is a non-IFRS ratio defined as free cash flow divided by sales.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/322157
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Vext Science's Q3 2026 revenue and net loss?
Vext reported $14.9 million in revenue and a $4.884 million net loss for the quarter ended September 30, 2026. Revenue increased 23% from Q2 2026 and 18% year-over-year. The net loss compared with $315,000 in Q2 2026 and $2.628 million in Q3 2025.
When does Vext expect its Columbus and Amelia dispensaries to open?
Vext expects its Columbus dispensary in Q1 2027 and its Amelia dispensary by the end of Q3 2027, with Amelia subject to regulatory approvals. Construction is underway in Columbus, and Amelia received a provisional dual-use license on October 28, 2026.
What does Vext's uncertain tax liability cover?
Vext's $11.5 million uncertain tax liability concerns the deductibility of certain costs and includes $1.4 million of accrued interest. No amounts have been assessed or are due. A final federal rescheduling order includes a non-binding recommendation on retrospective Section 280E treatment; potential relief remains uncertain, with no implementing guidance or financial-statement impact recognized at September 30, 2026.