Cannara Biotech posted Q3 net revenue of $27.2M and EPS of $0.02, down 50% year-over-year despite higher gross margins.
Cannara Biotech reported third-quarter gross cannabis revenue of $37.8M, up 3% year-over-year, while net revenue reached $27.2M, a 2% increase. Earnings per share fell to $0.02 from $0.04 in the same period last year, a 50% decline.
Gross profit before fair value adjustments rose 7% to $11.6M, with gross margins improving to 43% from 41%. Operating income dropped 44% to $3.3M, and adjusted EBITDA declined 15% to $6.0M. Operating cash flow turned positive at $2.9M, compared to a $2.6M outflow last year.
Net income fell 48% to $1.7M, while free cash flow remained negative at -$0.3M, an improvement from -$4.0M year-over-year.