Vancouver, British Columbia--(Newsfile Corp. - January 28, 2026) - Nextleaf Solutions Ltd. (CSE: OILS) (OTCQB: OILFF) (FSE: L0MA) ("Nextleaf", "OILS", or the "Company"), a multi-patented life science company and Canadian cannabis processor, is pleased to report its financial results for the Fiscal Year (FY) 2025.

For the twelve months ended September 30, 2025, the Company delivered a transformative performance, including a dramatic reduction in net loss, increased gross profit, and positive Adjusted EBITDA, reflecting continued progress toward sustainable profitability.

Key Financial Highlights

• Gross Revenue of $14,955,459
• Net Revenue of $11,264,354
• Operating expenses improved by 21% representing a reduction of $1,080,005 in expenses year over year
• Annual net loss dramatically reduced by 88.6% to $162,944, compared to $1,435,991 in FY 2024
• Achieved positive EBITDA¹ of $522,258, a significant reversal from the ($677,280) loss reported in the prior year
• Gross profit increased to $3,793,401 up from $3,742,561 in FY2024
• Operating Cash Flow: Generated positive cash flow from operations of $208,805, compared to a use of ($614,092) in the previous year

[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.

Financial Performance

Gross revenue was $14,955,459 compared to $16,567,537 in fiscal 2024, while the quality of the Company's earnings improved significantly. Annual gross profit rose to $3,793,401, and annual gross margins expanded from 23% to 25%.

Performance was driven by a deliberate shift toward higher-margin products and improved supply chain efficiency. The Company streamlined its portfolio through targeted SKU rationalization, disciplined pricing, and continued brand innovation, while optimizing its product mix by prioritizing consumer packaged goods over bulk distillate sales. This shift supported higher gross margins.

During Q4 FY25, cannabis distribution in British Columbia was temporarily disrupted due to labour action at the BCLDB, which affected order fulfilment and created short-term sales variability in the province. The impact was contained to BC and was partially offset by steady performance in other provincial markets.

"While working capital may fluctuate quarter to quarter, generating cash flow from operations remains a core priority. We are continuing to optimize our cash conversion cycle through improved receivables collection, disciplined inventory management, and controlled operating expenses. We will actively monitor liquidity and evaluate strategic financing options as needed to support growth and long-term sustainability," comments Sam Kassem, Nextleaf CFO.

Commercial Expansion

Fiscal 2025 revenue performance was driven by disciplined commercial execution, including a new brand launch, increased provincial listings, portfolio optimization, and geographic expansion. The Company successfully entered Québec with Glacial Gold branded oils and white-label extracts through strategic partnerships expanding its national footprint and revenue opportunities.

Portfolio optimization validated the launch of Yard, a new recreational brand designed to address growing demand for premium extracts and next-generation hardware. Yard introduces a more playful brand identity while leveraging the Company's core manufacturing strengths, broadening appeal without diluting operational focus.

During FY25, the Company launched over 20 new SKUs, bringing the active portfolio to 45 SKUs by year-end. The Company currently holds the largest national assortment of balanced, or high-CBD vape formulations (1:1 and 3:1), aligning product development with sustained consumer demand for wellness-forward, non-combustible formats under the Glacial Gold banner.

The Company's best-selling products remain Glacial Gold THC 10 Softgels (50 and 100-pack), Balanced 10:10 Softgels (50 and 100-pack), and Max Strength CBD 200 Oil which underscore Nextleaf's leadership position within high-potency, ingestible extracts.

"Through the longevity of our core SKUs and consistent market performance over time, we have established a reputation for trustworthy quality, clean ingredients, transparent labeling, and reliable dosing. These foundational attributes support scalable brand growth and long-term commercial expansion," shares Emma Andrews, Nextleaf CEO.

2026 Outlook

The Company has prioritized the following strategic initiatives for fiscal 2026:

• Pursue global export strategy with international resellers and commercial partners
• Capital allocation towards organically grown biomass sourced in BC for bulk distillate processing and sales
• Scaling up operations at Nextleaf Distribution Facility
• Onboard national sales agency for expanded distribution and brand presence in underrepresented regions including Ontario, Manitoba, Saskatchewan, and across national key accounts.
• Full digital transformation through completed ERP integration
• Establish Yard as a profitable national brand, with expanded listings in all major markets
• Increase market share across all Glacial Gold SKUs and maintain national category leadership position in oils and softgels

About Nextleaf Solutions Ltd.

Nextleaf® is a Canadian, federally licensed cannabis processor and life science company, delivering a portfolio of high purity cannabinoid ingredients and branded derivative products at scale.

As a total quality producer, Nextleaf maintains end-to-end controls and oversight across sourcing, extraction, distillation, formulation, and finished goods through a multi-patented, highly automated, closed-loop system. Nextleaf holds 19 U.S. patents and over 75 patents globally covering advanced cannabinoid processing, including extraction, distillation, and acetylation.

Nextleaf's house of brands includes a range of value-driven and soft-premium offerings through category-leading flagship brand Glacial Gold, High Plains Cannabis, and recently launched Yard Cannabis. Distributed coast-to-coast across medical and recreational channels, with an emerging niche amongst wellness consumers, Nextleaf's portfolio includes GMP-compliant and export-ready pharma-grade ingredients and products.

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 "Adjusted 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. Adjusted EBITDA is calculated as EBITDA plus share-based compensation expense. Adjusted EBITDA is considered as a useful measure by management to understand the profitability of Nextleaf Solutions excluding the effects of certain non-operating items.

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