Mr. Tomer Bar Meir reports

ESHBAL REPORTS 2025 RESULTS WITH REVENUE GROWTH AND MARGIN IMPROVEMENT

Eshbal Functional Food Inc. has released its financial results and MD&A (management's discussion and analysis) for the year ended Dec. 31, 2025.

The company reported revenues of $13.8-million (U.S.) for 2025, compared with $11.4-million (U.S.) in 2024, representing an increase of approximately 20 per cent year on year. Gross profit increased to $3.5-million, with gross margin improving to approximately 25.4 per cent, compared with 22.7 per cent in the prior year.

The increase in revenues and gross profit reflects continued growth in the company's core operations, including expanded product offerings, increased sales to existing customers and the addition of new customers.

Operating loss for the year was $300,000, compared with operating income of $600,000 in 2024, primarily reflecting higher general and administrative expenses associated with the company's transition to a public company. Net loss for the year was $2.9-million, mainly due to one-time listing expenses incurred in connection with the reverse takeover completed in April, 2025.

Further to the company's announcement on Feb. 6, 2026, that it acquired the business of Gluten Free Nation, on April 9, 2026, the parties entered into a side letter agreement that in the event the issuance of shares of Eshbal pursuant to the attainment of certain milestones would cause Starcall Broadcasting LLC, the vendor of the Gluten Free Nation assets, together with its affiliates and joint actors to own 10 per cent or more of the issued voting securities of Eshbal, Eshbal will pay cash to Starcall in lieu of issuing such shares that result in Starcall owning 10 per cent of the outstanding Eshbal shares.

The company's audited financial statements and management's discussion and analysis for the year ended Dec. 31, 2025, are available on SEDAR+.

About Eshbal Functional Food Inc.

Eshbal Functional Food is a publicly traded food-tech company focused on building a scalable platform of gluten-free and health-oriented food brands across retail, food-service and on-line channels in North America.

Since listing on the TSX Venture Exchange in 2025, Eshbal has been executing its North American growth strategy through a combination of organic expansion and strategic acquisitions. The company's operations include gluten-free, better-for-you and functional food products sold across retail, food-service and on-line channels.

During this period, the company completed the acquisition of Gluten Free Nation, acquired a majority interest in Dare to Be Different Foods, launched localized North American production in partnership with Queen Street Bakery, and strengthened its commercial infrastructure in the region.

Eshbal's strategy is focused on integrating complementary better-for-you brands into a centralized operating platform designed to expand distribution, support operational efficiencies and create long-term growth opportunities.

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