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Gross margin improves to 57%, supported by 48% quarterly growth in proprietary product sales
QUIX™ rapid-onset portfolio prepared for Q3 launch with more than 35 commercial listings secured
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TORONTO, Aug. 14, 2026 (GLOBE NEWSWIRE) — Avicanna Inc. (“Avicanna” or the “Company”) (TSX: AVCN) (OTCQX: AVCNF) (FSE: 0NN), a biopharmaceutical company focused on the development, manufacturing and commercialization of plant-derived cannabinoid-based products, is pleased to announce its financial results for Q2 2026, including the related financial statements and management’s discussion and analysis.
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“We are encouraged by the continued improvement in the fundamentals of our business and particularly proud of how our team navigated the significant Veterans Affairs reimbursement changes while maintaining underlying patient and order growth,” said Aras Azadian, Chief Executive Officer of Avicanna. “We also continued to grow our proprietary products, expand gross margins and make progress toward profitability, while preparing for the next phase of growth and scale-up across our medical cannabis and pharmaceutical pipelines. The translation of our proprietary QUIX™ technology from research and development into a commercial portfolio launching in the third quarter demonstrates our ability to convert scientific capabilities and intellectual property into differentiated commercial products. With a stronger underlying business, an expanding portfolio and advancing clinical programs, we believe we are well positioned for a stronger second half of 2026 and long-term growth.”
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Financial Highlights:
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- Revenue: The Company generated revenue of $5.64 million and $12.32 million for the three- and six-month periods ended June 30, 2026, representing decreases of 8% and 1%, respectively, compared to the corresponding periods in 2025. The second-quarter decline was primarily attributable to the April 1, 2026, reduction in Veterans Affairs Canada (“VAC”) reimbursement rates, together with the timing of revenue from SMGH and other growing business units, which can vary between reporting periods. Despite these headwinds, the Company’s underlying operations demonstrated positive momentum, including growth in Avicanna proprietary product sales and increases in patients and orders through MyMedi.ca.
- Gross Profit: Gross profit was $3.19 million for the second quarter and $7.03 million for the six-month period, representing improved gross margins of 57% for both periods, compared to 51% and 54% for the respective periods in 2025. The 600-basis-point year-over-year improvement in second-quarter gross margin was primarily driven by a greater contribution from higher-margin proprietary Avicanna-branded products, including a 42% year-over-year increase in sales of Avicanna-branded products through MyMedi.ca, reflecting continued execution of the Company’s portfolio and commercialization strategy.
- Adjusted EBITDA: The Company reported a narrow-adjusted EBITDA loss of $0.36 million for the second quarter and $0.60 million for the six-month period, compared to an adjusted EBITDA loss of $0.25 million and adjusted EBITDA of $0.18 million, respectively, in the corresponding periods in 2025. The year-over-year change was primarily attributable to the second-quarter revenue decline, the impact of which was partially mitigated by continued operating efficiencies and cost-management initiatives. Management expects revenue recovery, continued growth initiatives and further operating efficiencies to support positive adjusted EBITDA during the second half of 2026.
- Working Capital: The Company improved its working capital position, reducing its working capital deficit to $0.28 million as of June 30, 2026, compared to a deficit of $1.28 million as of December 31, 2025.
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Canadian Commercial Advancements: Sales of Avicanna’s proprietary products increased from 50,681 units to 67,174 units, representing year-over-year growth of 33% across all channels. Proprietary product sales also increased 48% quarter-over-quarter, from 45,419 units in the first quarter of 2026 to 67,174 units in the second quarter. At quarter end, the Company had 56 commercial SKUs and 172 commercial listings across medical and adult-use channels, representing increases of 12% and 27%, respectively, compared to the second quarter of 2025. The Company expects continued portfolio expansion during the third quarter, supported by new product launches, including the QUIX™ portfolio.
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MyMedi.ca: Following four consecutive quarters of growth, MyMedi.ca experienced its first sequential quarterly revenue decline, primarily due to the VAC reimbursement changes effective April 1, 2026. Despite an approximately 30% reduction in the maximum VAC reimbursement rate and an associated 11.3% decline in average patient cart size, the Company substantially mitigated the impact through portfolio optimization, increased penetration of Avicanna-branded products and operating efficiencies. The number of active patients and total orders increased during the second quarter demonstrating a positive trend despite the reimbursement change.
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