Ms. Emma Andrews reports

NEXTLEAF SOLUTIONS REPORTS PROFITABLE Q1 FY26 WITH REVENUE GROWTH AND POSITIVE OPERATING CASH FLOW

Nextleaf Solutions Ltd. has released its financial results for the three months ended Dec. 31, 2025 (Q1 fiscal 2026), with gross revenue of $3,994,369, net revenue of $3,020,519 and gross profit of $1,288,197.

Q1 fiscal 2026 marked continued execution, with sustained profitability, improved working capital and positive operating cash flow.

Q1 fiscal 2026 financial highlights:

• Revenue and margin performance:
  • Gross revenue: $3,994,369;
  • Net revenue: $3,020,519;
  • Gross profit: $1,288,197;
  • Gross margin: 43 per cent;
• Profitability:
  • Net income: $259,171;
  • Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization): $349,961;
• Cash flow and liquidity:
  • Positive operating cash flow: $348,609;
  • Quarter-end cash: $680,277.

Financial performance

Gross revenue increased to approximately $4-million (up 3.7 per cent from Q1 fiscal 2025 at $3,852,505), alongside net revenue increase of 4.6 per cent to $3.02-million. This was driven by sustained momentum across the company's portfolio of branded extract products, reflecting the company's continued strategic emphasis on higher-margin activities, including consumer packaged goods (vapes, oils and soft gels).

Gross profit increased year over year to $1.29-million. The company generated positive net income of $259,171 and positive adjusted EBITDA of $349,961 for the quarter. This marks the company's fifth consecutive quarter of positive adjusted EBITDA.

Q1 fiscal 2026 reflects continued progress toward sustainable profitability, demonstrating resilience following the temporary, late-2025 supply chain disruption in British Columbia.

Nextleaf generated positive operating cash flow of $348,609 during Q1 fiscal 2026, contributing to a strengthened cash position and improved working capital year over year. The company continues to operate without secured debt.

Operational and strategic highlights

In November, 2025, Nextleaf announced the national launch of Yard Cannabis, a new recreational brand designed to serve adult-use consumers seeking high-potency extracts, premium inputs and an improved consumption experience through next-generation hardware.

Yard expands the company's house of brands and complements flagship brand Glacial Gold's established leadership in non-combustible formats for value-seeking wellness consumers. This launch strengthened the company's portfolio depth across multiple consumer segments.

"Q1 [fiscal 2026] reflects continued discipline across our operating model, from margin protection to capital efficiency," said Emma Andrews, chief executive officer of Nextleaf Solutions. "We are building a consistently profitable platform with a strong balance sheet and scalable infrastructure. In a competitive market, execution remains our differentiator."

Q2 fiscal 2026 outlook

Nextleaf enters the second quarter (January to March, 2026) focused on:

• Advancing international export opportunities and relationships;
• Scaling the company's branded product portfolio through increased distribution and incremental product listings nationally;
• Biomass processing and bulk ingredient manufacturing: single strain, organically grown, sourced-in-British Columbia inputs;
• Enterprise-resource-planning-driven digital integration and business intelligence optimization;
• Maintaining positive operating cash flow and disciplined capital allocation.

The company remains committed to profitable growth and long-term shareholder value creation.

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 multipatented, 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 (good manufacturing practice) 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.

We seek Safe Harbor.