Toronto, Ontario--(Newsfile Corp. - June 2, 2026) - Eshbal Functional Food Inc. (TSXV: ESBL) ("Eshbal" or the "Company"), a developer and manufacturer of gluten-free and better-for-you food and dietary supplement products, reports its financial results for the three months ended March 31, 2026.

Eshbal Functional Food Inc.

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Q1, 2026 Highlights

• Revenue increased 43% to US$5.38 million compared to US$3.76 million in Q1 2025
• Gross profit increased 41% to US$1.55 million compared to US$1.10 million in Q1 2025, while gross margin remained relatively stable at ~29%
• Operating income for Q1 2026 totaled US$254 thousand and income before taxes totaled US$149 thousand as compared to operating income of 434 thousand and income before tax of $390 thousand in Q1 2025
• Q1 2026 included initial partial-quarter contributions from the Gluten Free Nation and Dare to Be Different acquisitions, both of which closed in February 2026
• EBITDA for Q1 2026 totaled approximately US$512 thousand as compared to $604 thousand for Q1 2025.
• The Company continued expanding its North American commercial activities across retail, foodservice and e-commerce channels

Q1, 2026 results reflected operations prior to completion of the Company's reverse takeover transaction (RTO) and prior to the expansion of the Company's North American operating platform and related public company activities.

"We are pleased with the Company's strong start to 2026, highlighted by record quarterly revenues and continued expansion of our North American operations," said Tomer Bar Meir, Chief Executive Officer of Eshbal. "During the quarter, we completed the acquisitions of Gluten Free Nation and Dare to Be Different, continued advancing our retail, foodservice and e-commerce activities in North America, and expanded local commercial production capabilities. While these initiatives increased operating expenses during the quarter, management believes these initiatives establish important infrastructure for future growth."

The Company's condensed interim consolidated financial statements and management discussion and analysis for the three months ended March 31, 2026 are available under the Company's profile on SEDAR+ at www.sedarplus.ca and on the Company's website at www.eshbal.com. Additional information regarding certain Company brands and direct-to-consumer platforms is available at www.barilifoods.com and www.d2bdfoods.com.

Non-GAAP Financial Measures

The Company references EBITDA, which is a non-IFRS (non-GAAP) measure EBITDA means adjusted earnings before interest, taxes, depreciation and amortization. EBITDA is equal to net income (loss) before income taxes plus finance costs plus depreciation.

EBITDA is not a recognized measure under IFRS. Management believes that in addition to net income (loss), EBITDA is a useful supplemental measure as it provides an indication of the results generated by the Company's primary business activities prior to consideration of how those activities are financed, amortized, or how the results are taxed and consolidated in various jurisdictions and currencies as well as the cash generated by the Company's primary business activities without consideration of the timing of the monetization of non-cash working capital items.

Readers should be cautioned, however, that EBITDA should not be construed as an alternative to net income determined in accordance with IFRS as an indicator of the Company's performance. The Company's method of calculating EBITDA may differ from other organizations and, accordingly, EBITDA may not be comparable to measures used by other organizations.

The non-IFRS measures referenced in this release reconcile to the IFRS measures reported in the Condensed Interim Consolidated Financial Statements as follows, unless reconciled elsewhere:

About Eshbal Functional Food Inc.

Eshbal Functional Food Inc. (TSXV: ESBL) is a publicly traded food-tech company focused on building a scalable platform of gluten-free and health-oriented food brands across retail, foodservice, and online 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, foodservice, and online 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.

(Eshbal maintains active digital engagement and investor communications through its corporate website and official social media channels:

Website 
LinkedIn 
Facebook 

Disclaimers:

Neither the TSX Venture Exchange Inc., nor its Regulation Servicer provider accepts responsibility for the adequacy or accuracy of this release.

This press release contains "forward-looking statements" within the meaning of the securities laws. Words such as "expects" "anticipates", "intends", "plans", "believes", "seeks," "estimates" and similar expressions or variations of such words are intended to identify forward-looking statements. Forward-looking statements are not historical facts, and are based upon management's current expectations, beliefs and projections, many of which, by their nature, are inherently uncertain. Such expectations, beliefs and projections are expressed in good faith. However, there can be no assurance that management's expectations, beliefs and projections will be achieved, and actual results may differ materially from what is expressed in or indicated by the forward-looking statements. Forward- looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the forward-looking statements. For a more detailed description of the risks and uncertainties affecting the Company, reference is made to the Company's reports filed from time to time at sedarplus.ca. Forward-looking statements speak only as of the date the statements are made. The Company assumes no obligation to update forward- looking statements to reflect actual results, subsequent events or circumstances, changes in assumptions or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws. If the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. The Company is not responsible for the contents of third-party websites.

This press release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities described herein in the United States or elsewhere. These securities have not been, and will not be, registered in the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States or to U.S. persons unless registered or exempt therefrom.

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