Vancouver, British Columbia--(Newsfile Corp. - August 28, 2025) - Nextleaf Solutions Ltd. (CSE: OILS) (OTCQB: OILFF) (FSE: L0MA) ("Nextleaf", "OILS", or the "Company"), an innovation-driven life science company and licensed cannabis processor, is pleased to announce its financial results for the third quarter of fiscal year 2025, ended June 30, 2025. The Company reported gross revenue of $3,769,797, net revenue of $2,912,572 and gross profit of $1,107,593. This marks the Company's fourth consecutive profitable quarter without normalization.
Q3 FY2025 Highlights
Positive Momentum on Revenue and Profitability:
- Gross revenue $3,769,797 million. Net Revenue $2,912,572
- Gross profit $1,107,593 million, up 25% from $884,344 in the same period last year, with a steady gross margin of 29%
- Net income $867,352 YTD, up 172% from a ($1,196,316) loss for the same period in FY24
- Positive EBITDA1 at $1,112,285 YTD, highlighting the Company's operational efficiency and disciplined cost management
The Company has streamlined its product portfolio and enhanced competitiveness through targeted SKU rationalization, strategic pricing, and brand innovation to address a softer Q3.
Competitive pressure in saturated categories like high-THC vapes and infused prerolls impacted the quarter's results. Despite this, the Company has delivered profitability (without normalization) through four consecutive quarters and remains on track to exceed FY24 revenue, net income, and adjusted EBITDA targets, driven by national leadership in wellness-forward formats including softgels and oils.
Strong Balance Sheet:
- The Company maintained $9.0 million in assets, and improved working capital closing the quarter with $5,601,524. An increase of 24% compared to year-end Sept 30, 2024.
- The Company's debt-to-equity (D/E) ratio was reduced to 0.61 and shareholder's equity held strong at $5.6 million.
The Company ended the quarter with no secured debt, underscoring continued profitability, disciplined financial management, and a strong, undiluted equity position. This provides a solid foundation for growth without over-leveraging assets.
Commercial Expansion:
- 11 new product launches under flagship brand Glacial Gold across 3 categories including: 3 softgels, 5 vapes, and 3 bottled oils with national distribution.
The Company continues to focus on delivering standardized, consistent, dose-controlled extracts with high potency and purity. National product listings have driven recent success in growing categories, including full-spectrum extracts (e.g., RSO softgels), ratio-based formulations (e.g., 1:1 vapes), and minor cannabinoids (e.g., CBG and CBN oils, softgels, and vapes), reinforcing the brand's appeal to wellness-focused adult-use consumers.
"In Q3, we rapidly refined our CPG strategy-balancing both offense and defense-to protect and grow revenue from our branded portfolio, accelerate momentum in the categories we lead, and build a foothold where we've underperformed or are just entering," said Emma Andrews, CEO of Nextleaf Solutions. "We've stayed humble, agile, and innovative under pressure, and I look forward to sharing the results of these efforts in the quarters ahead-the numbers will speak for themselves."
Further performance analysis for Nextleaf's flagship brand Glacial Gold within the Canadian recreational retail market can be found at: https://www.headset.io/brands/glacial-gold
Q4 FY2025 Outlook
The Company will prioritize and allocate working capital to the following strategic initiatives throughout the fourth quarter of FY2025:
- Scaling softgel innovation: Launching Canada's first 200-count softgel format with two SKUs available nationally.
- Advancing consumer value in vapes through new hardware technology: Investing in next generation "post-less" vape hardware to support a new brand launch and elevate the consumer experience across existing SKUs.
- Increasing operational capability: Beginning soft-opening activities (non-cannabis related) at the Company's second site, Nextleaf Distribution.
- Driving retail engagement: Distributing more than 20,000 softgels to budtenders, buyers, and key retail decision-makers through a national sampling program.
- Enhancing market visibility: Hosting brand activations and experiential events to strengthen relationships with buyers and national chains, with a focus on core regions.
About Nextleaf Solutions Ltd.
Nextleaf® is an innovation-driven life science company, and licensed cannabis processor with a portfolio of federally regulated emerging consumer brands, market validated cannabis derivative products, and high-potency bulk ingredients. Nextleaf's multi-patented, highly automated, closed loop extraction and distillation technology sets the global standard for processing cannabis at scale.
With coast-to-coast distribution, Nextleaf branded products and ingredients are sold through both medical and recreational channels. Featuring the acclaimed brand Glacial Gold, leading multiple categories nationally, including cannabis softgels, vapes, and oils.
The Company has been issued 19 U.S. patents, and 75+ patents globally, on cannabinoid processing including extraction, distillation, and acetylation.
On behalf of the Board of Directors of the Company,
Emma Andrews, CEO
Contact: investors@nextleafsolutions.com
Follow Nextleaf Solutions on LinkedIn
Learn More: www.nextleafsolutions.com
Nextleaf trades as OILS on the Canadian Securities Exchange, OILFF on the OTCQB Market in the United States, and L0MA on the Frankfurt Stock Exchange.
Disclaimers and Disclosure Statements:
Certain statements contained in this press release constitute "forward-looking statements" within the meaning of applicable securities laws. All statements other than statements of historical fact contained in this press release, including, without limitation, statements regarding the Company's anticipated delivery of its products to provincial markets across Canada and those regarding the Company's strategy, plans, objectives, goals and targets, and any statements preceded by, followed by or that include the words "believe", "expect", "aim", "intend", "plan", "continue", "will", "may", "would", "anticipate", "estimate", "forecast", "predict", "project", "seek", "should" or similar expressions or the negative thereof, are forward-looking statements. These statements are not historical facts but instead represent only the Company's expectations, estimates and projections regarding future events. These statements are not guarantees of future performance and involve assumptions, risks and uncertainties that are difficult to predict. Therefore, actual results may differ materially from what is expressed, implied or forecasted in such forward-looking statements. Additional factors that could cause actual results, performance or achievements to differ materially include, but are not limited to the risk factors discussed in the Company's MD&A for the most recent fiscal period. Management provides forward-looking statements because it believes they provide useful information to investors when considering their investment objectives and cautions investors not to place undue reliance on forward-looking information. Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Company. These forward-looking statements are made as of the date of this press release and the Company assumes no obligation to update or revise them to reflect subsequent information, events or circumstances or otherwise, except as required by law. The Canadian Securities Exchange has not reviewed or approved the contents of this press release.
Non-IFRS Financial Measures
This press release includes references to "EBITDA", which are not defined under International Financial Reporting Standards (IFRS). The intent of these non-IFRS measures is to provide additional useful information to investors and analysts. These non-IFRS measures do not have a standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other entities. As such, these non-IFRS measures should not be considered in isolation or used as a substitute for measures of performance prepared in accordance with IFRS. EBITDA is considered as a useful measure by management to understand the profitability of Nextleaf Solutions excluding the effects of certain non-operating items.
1 Non-IFRS or supplementary financial measure. See discussion in the Non-IFRS Financial Measures advisories section of this press release below and Management Discussion & Analysis.
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SOURCE: Nextleaf Solutions Ltd.
