- Annual adjusted EBITDA (1): $1.0 million, improved 300% YoY
- Quarterly gross profit percentage: 65%, improved from 61% in Q1 2025
- Total operating expenses in Q1 2026 reduced by 45% compared to Q4 2025, and reduced by 28% compared to Q3 2025
- Quarterly revenue: $3.6 million, down 10% YoY
Vancouver, British Columbia--(Newsfile Corp. - October 10, 2025) - Purebread Brands Inc. (TSXV: BRED) ("Purebread" or the "Company") is pleased to announce its Q1 2026 financial results, the highlights of which are included in this news release. The full set of Condensed Consolidated Interim Financial Statements and Management Discussion and Analysis can be viewed by visiting the Company's website at www.purebreadbrands.com or its SEDAR+ profile at www.sedarplus.ca.
Q1 2026 Financial Highlights
Q1 2026 Adjusted EBITDA of $1.0 million, a 300% improvement from $(0.5) million in the prior year. Improvements in Adjusted EBITDA are attributable to the ongoing efforts to streamline the business and maximize efficiency in operating expenses.
Gross profit percentage increased YoY to 65% in Q1 2026 from 61% in Q1 2025. The increase in gross profit was primarily driven by the Company's strategic rationalization of operations, including a shift in focus toward its core bakery business and reduced emphasis on the Coho Kitchens, resulting in lower overall costs.
Total operating expenses decreased by 45% compared to Q4 2025 and reduced by 28% compared to Q3 of 2025. The decrease in the operating expenses aligns with management's cost-reduction efforts and continued focus on streamlining the business going forward.
Revenue decreased 10% YoY from $4 million in Q1 2025 to $3.6 million in Q1 2026. The decrease in revenue was as a result of the discontinuation of certain Coho kitchen locations.
| Three Months Ended June 30, | Three Months Ended June 30, | ||||||
| 2025 | 2024 | ||||||
| $ | $ | ||||||
| Net loss | (27,002 | ) | (1,905,756 | ) | |||
| Amortization | 245,844 | 523,141 | |||||
| Accretion | 106,964 | 102,328 | |||||
| Interest | 647,688 | 711,941 | |||||
| Share based compensation | 14,567 | 69,900 | |||||
| Adjusted EBITDA | 988,061 | (498,446 | ) |
(1) Adjusted EBITDA is a non-IFRS measure defined as earnings (or loss) before interest, taxes, depreciation, amortization, share-based compensation, and accretion.
- Interim CEO Amrit Maharaj commented on the results:
"These results underscore the significant progress we've made in aligning our business model with our core strengths. Equally important, we achieved meaningful cost reductions and delivered our strongest quarterly adjusted EBITDA performance to date. This is a major milestone that positions us well for sustainable growth and profitability moving forward".
Year To Date Company Highlights
Streamlined Shared Kitchen Operations
- Cost reductions: Continued to lower operating expenses, with further profit maximization efforts planned for future quarters.
- Closures: Transitioned two Coho Commissary locations (Pandora Street and Gibsons) on September 5, 2025, back to landlords, and closed the East Hastings and Victoria Public Market sites. These strategic changes will help streamline operations and allocate resources toward expanding Purebread Bakery.
Corporate Initiatives
- Completed a debt-to-equity conversion agreement under which it will issue 3,739,162 common shares and 1,869,561 share purchase warrants to settle $3,559,556 of outstanding debt at a conversion price of $0.25 per unit, strengthening the Company's balance sheet and enhancing financial flexibility for future growth initiatives.
- Implemented a 5-for-1 Common Share consolidation to optimize its capital structure and enhance the long-term value for shareholders.
About Purebread Brands Inc.:
Purebread Brands Inc. is a leader in fast-casual cafe / bakeries in British Columbia, driving retail expansion in vibrant communities across Canada and beyond. Purebread is committed to crafting exceptional food experiences and making a positive impact on the communities it serves.
For more information and updated investor presentation, please visit www.purebreadbrands.com
Contact:
Amrit Maharaj, Interim Chief Executive Officer
info@purebread.ca
(604) 889-5865
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Non-IFRS Measures, Reconciliation and Discussion
This press release contains references to "Adjusted EBITDA" that is a non-IFRS financial measures. Adjusted EBITDA is defined as earnings (or loss) from operations before interest, taxes, depreciation and amortization, adjusted for share based compensation, accretion and non-recurring transaction costs, and is a non-IFRS measure.
For Adjusted EBITDA: This measure can be used to analyze and compare profitability among companies and industries, as it eliminates the effects of financing and capital expenditures. It is often used in valuation ratios and can be compared to enterprise value and revenue. This measure does not have any standardized meaning according to IFRS and, therefore, may not be comparable to similar measures presented by other companies.
There are no comparable IFRS financial measures presented in Coho's financial statements. Reconciliations of the supplemental non-IFRS measure are presented in the Company's MD&A for the three months ended June 30, 2025 ("FY 2025 MD&A"). This non-IFRS financial measure is presented because management has evaluated the financial results both including and excluding the adjusted items and believes that the non-IFRS financial measure presented provides additional perspective and insights when analyzing the core operating performance of the business. The Company believes that the supplemental measure provides information which is useful to shareholders and investors in understanding the Company's performance and may assist in the evaluation of the Company's business relative to that of its peers.
The non-IFRS financial measure should not be considered superior to, as a substitute for, or as an alternative to, and should be considered in conjunction with the IFRS financial measures presented in the Company's financial statements. For more information, please see "Adjusted EBITDA (non-IFRS measure)" in the Company's Q1 2026 MD&A, which is available under the Company's System for Electronic Document Analysis and Retrieval ("SEDAR+") profile on www.sedarplus.ca.
Forward-Looking Information
This press release may contain "forward-looking statements" and "forward-looking information" (collectively, "forward-looking statements") within the meaning of applicable securities legislation, which reflect management's current expectations regarding future events. Such forward-looking statements include, but are not limited to, forward-looking statements with respect to plans, intentions, beliefs, and current expectations of the Company with respect to future business activities, expansion and operating performance.
Forward-looking statements are frequently characterized by words such as "plan", "project", "intend", "believe", "anticipate", "estimate", "expect" and other similar words, or statements that certain events or conditions "may" or "will" occur. Although the Company's management believes that the assumptions made (and the expectations represented by such forward-looking statements) are reasonable, there can be no assurance that any forward-looking statements referenced herein will prove to be accurate.
Forward-looking statements are not based on historical facts but instead reflect the opinions and estimates of management at the date the statements are made and are subject to a variety of risks, uncertainties, and other factors that could cause actual results or events to differ materially from those anticipated in the forward-looking statements. These risks, uncertainties, and other factors that could cause actual results to differ materially from those in forward-looking statements include: reliance on key personnel, protection of our intellectual property rights, competition, a failure to establish additional locations, disruption at our facilities, global pandemics (such as COVID-19) and corresponding impacts on the Company's business, government regulation of the virtual kitchen industry, the price of raw materials, consumer trends, climate change, cybersecurity, food safety and consumer health, brand value, internet search algorithms, reputation risk, risks associated with leasing commercial and retail space, effect of service and facility innovation, failure to retain current members and/or recruit new members, litigation risk, failure to meet expectations of our values & metrics, risks associated with acquisitions, management of growth, a history of losses, negative cash flow, additional funding requirements and risks, dividend risk, increased costs of being a publicly traded company, global economic risk, and share price volatility risk.
The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates should change, except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. More detailed information about potential factors that could affect results is included in the documents that may be filed from time to time with Canadian securities regulatory authorities by the Company.
For a more detailed discussion of certain of these risk factors, see the heading "Risk Factors" in the Company's most recent MD&A, available under the Company's SEDAR+ profile at www.sedarplus.ca.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/270089
SOURCE: Purebread Brands Inc.