{"success":true,"data":{"pressRelease":{"id":"170112","rtpr_id":"nACSc1BFra-20261015","ticker":"AVNT","exchange":"TSX","all_tickers":["AVNT"],"title":"Avant Brands Reports Q3 2026 Results Highlighted by Positive Net Income and 51% Growth in Recreational Revenue","author":"ACCESSWIRE","published_at":"2026-10-15T11:30:00.339Z","article_body":"KELOWNA, BC / ACCESS Newswire (https://www.accessnewswire.com/) / October 15,\n2026 / Avant Brands Inc. (TSX:AVNT)(OTCQX:AVTBF)(FRA:1BU0) (\"Avant\" or the\n\"Company\"), a leading producer of innovative and award-winning cannabis\nproducts, today released its financial results for the third quarter ended\nAugust 31, 2026 (\"Q3 2026\").\n\nWith an expanding global footprint, Avant has established itself as a leading\nCanadian producer of ultra-premium cannabis, delivering brands at a commercial\nvolume that continues to be outpaced by market demand.\n\nNorton Singhavon, Founder & CEO of Avant Brands commented:\n\n\"Q3 was an inflection point for Avant. Returning to positive net income of\n$0.2 million and increasing Adjusted EBITDA to $1.3 million reflects our\ndeliberate pivot away from low margin bulk wholesale toward high margin\nbranded recreation. Recreational sales grew 51% to $4.1 million, representing\nmore than half of our net revenue and driven by ongoing market share gains in\nBLK MKT™ and Tenzo™. Operationally, the LED retrofit at Flowr delivered an\nimmediate 57.5% sequential increase in kilograms harvested. Over the past two\nyears we reduced interest bearing debt from $8.1 million to $0.9 million,\ngiving us the financial footing to reinvest in our facilities and build out\nour international export channels.\"\n\nQ3 2026 Financial Highlights (vs. Q3 2025):\n\nRevenue:\n* Gross revenue: $9.0 million (-16%)\n* Net revenue: $7.3 million (-22%)\n* Recreational revenue: $4.1 million (+51%).\n* Export wholesale revenue: $2.1 million (-50%)\n* Domestic wholesale revenue: $1.1 million (-52%)\nGross profit: Gross profit increased to $2.5 million, compared to a gross\nprofit of $1.7 million in Q3 2025.\n\nNet Income: Net income was $0.2 million, compared to a net loss of $1.9\nmillion in Q3 2025.\n\nAdjusted EBITDA(1): Adjusted EBITDA(1) improved to $1.3 million, compared to\n$0.2 million in Q3 2025. The increase was driven by a higher-margin sales mix,\nstronger gross margins, and lower operating expenses. The Flowr lighting\nretrofit contributed an early increase in kilograms harvested at that\nfacility.\n1. Adjusted EBITDA is a non-GAAP performance measure. The information is\nincorporated by reference from the Q3 2026 MD&A filings under \"Cautionary\nStatement Regarding Certain Non-GAAP Performance Measures\". The Company's MD&A\nis available on SEDAR+ at www.sedarplus.com\nBalance Sheet & Liquidity Highlights\n* Cash Position: The Company reported cash amounting to $1.1 million as of\nAugust 31, 2026, compared to $1.5 million at the end of Fiscal 2025.\n* Positive Operating Cash Flow: Avant generated $2.7 million in net cash flows\nfrom operating activities for the nine-month period ended August 31, 2026,\ndemonstrating sustained cash generation from operating activities.\n* Quarterly operating cash flow: Net cash from operating activities was $0.9\nmillion in Q3 2026, compared to $1.1 million in Q3 2025.\n* Continued Debt Reduction: The Company remains committed to prudent capital\nallocation and balance sheet optimization. In less than 24 months, Avant has\nreduced its interest-bearing debt from $8.1 million to $0.9 million, while\ncontinuing to invest in operational improvements, product innovation, and\ninternational growth opportunities.\nQ3 2026 Operational Milestones\n* LED lighting retrofit at Flowr: On July 22, 2026, the Company announced\n(https://pr.report/sd6j) completion of a full LED retrofit of its 80,000\nsquare foot Flowr facility, replacing high-pressure sodium lighting across all\nflower rooms. Project cost was approximately $2.04 million, more than 28%\nunder the original estimate, and is supported by up to $2.0 million in\nnon-dilutive incentive funding, subject to final measurement and verification.\nKilograms harvested at Flowr increased from 807 kg in Q2 2026 to 1,272 kg in\nQ3 2026, up 57.5%.\n* EU-GMP audit completed at Flowr: On August 20, 2026, the Company announced\n(https://pr.report/sd6k) that a qualified German auditing body had completed\nthe on-site EU-GMP audit at Flowr, covering cultivation, harvesting,\nprocessing, and quality management. Certification, if granted, would allow the\nCompany to serve Germany and its other international medical markets with\ngreater control of processing and batch release, rather than relying on a\nEuropean partner.\nCanadian Recreational Highlights:\n\nRecreational revenue increased by 51%, reflecting the Company's execution of a\ndisciplined growth strategy centered on differentiated product innovation, a\nhigher-performing SKU portfolio, and more effective commercialization across\nprovincial markets. Targeted improvements in production efficiency and\nfulfillment have strengthened product availability and supported retail\nsell-through, while continued momentum in Ontario & British Columbia\ndemonstrate the effectiveness of this integrated approach. By identifying\nmarket whitespace and scaling products with proven consumer demand, the\nCompany continues to build a more productive and scalable portfolio designed\nto support financially sustainable long-term growth. This strategy delivered\nthe following market milestones, based on Q3 Ontario Cannabis Store (OCS)\nsales data:\n* Premium Whole Flower Leadership: BLK MKT™ continues to lead Ontario's\npremium flower segment ($8.60/gram and above), holding its position as the #1\nbrand by total sales dollars during the quarter and outperforming more than 50\ncompeting brands.\n* Pre-Roll Category Leadership: BLK MKT™ continued to hold the #1 position\nin overall sales within the single unit pre-roll segment above 1-gram and #2\nfor single unit 1-gram pre-rolls.\n* 14g Whole Flower Leader in Sales: Tenzo™ Big Smallz ranked as the #3\nbest-selling 14-gram whole flower SKU in Ontario by total sales dollars during\nthe quarter, outperforming more than 190 competing SKUs in the category.\n* Leading Milled Offerings: Tenzo™ secured the # 1 and # 2 best-selling SKUs\nin Ontario's multi-pack milled flower segment, while ranking 4th overall in\nthe broader milled flower category among more than 55 competing brands.\nCannabis Production and Sales:\n* Cannabis Production: 3,224 KG (-0.2%). Excluding Flowr, the Company's\ncultivation production continues to operate at an optimized maximum capacity.\nAt Flowr, kilograms harvested increased from 807 kg in Q2 2026 to 1,272 kg in\nQ3 2026, or 57.5%, an early result following commissioning of the LED\nretrofit, with potential for further optimization in subsequent crop cycles.\n* Cannabis Sales: 2,222 KG sold (-34%) with 361 KG comprised of trim.\nQ3 2026 YTD Financial Highlights (vs. Q3 2025 YTD):\n\nRevenue:\n* Gross revenue: $26.6 million (-12%)\n* Net revenue: $22.2 million (-16%)\n* Recreational revenue: $11.7 million (+39%)\n* Export wholesale revenue: $6.6 million (-49%)\n* Domestic wholesale revenue: $3.8 million (-16%)\nGross profit: Gross profit was $2.8 million, compared to $3.1 million in the\ncomparative prior-year period.\n\nThe decrease in gross profit was driven by lower net revenue and a decrease in\nthe unrealized gain on changes in fair value of biological assets as compared\nto the same period in the prior year.\n\nAdjusted EBITDA(1): Adjusted EBITDA(1) was negative $0.6 million, compared to\npositive $3.2 million in the comparative period of the prior year. The\ndecrease in adjusted EBITDA was primarily driven by lower net revenue and\ngross profit.\n1. Adjusted EBITDA is a non-GAAP performance measure. The information is\nincorporated by reference from the Q3 2026 MD&A filings under \"Cautionary\nStatement Regarding Certain Non-GAAP Performance Measures\". The Company's MD&A\nis available on SEDAR+ at www.sedarplus.com\nCannabis Production and Sales:\n* Cannabis Production: 9,080 KG (-8%), reflecting the Company's ongoing\ncultivation optimization initiatives across its production facilities.\n* Cannabis Sales: 9,155 KG sold (-4%), primarily reflecting lower export\nwholesale transactions compared to the prior year period.\nOutlook\n\nManagement expects further operating benefits from the Flowr lighting\nretrofit, including lower energy and HVAC costs and improved cultivation\nperformance, as post-retrofit crop cycles move through production and sale.\nThe Q3 increase in kilograms harvested at Flowr is an early indication, not\nthe full run-rate. The Company will also complete measurement and verification\ntied to the remaining incentive funding.\n\nThe Company will continue the EU-GMP process at Flowr, including remediation\nof audit observations. Certification remains subject to review by the auditing\nbody and has not been granted. Management views certification, if obtained, as\na requirement for future export sales with greater control over processing and\nbatch release. It was not a contributor to Q3 revenue and certification is not\nassured.\n\nAvant will continue to prioritize branded recreational execution in Canada,\nwhere BLK MKT™ and Tenzo™ hold leading positions in Ontario. Additionally,\nthe Company will continue to focus on disciplined capital allocation as\nevidenced by the interest-bearing debt having been reduced from $8.1 million\nto $0.9 million in less than 24 months.\n\nRecent recognition\n\nSubsequent to quarter-end, Avant Brands was named to The Globe and Mail Report\non Business (https://pr.report/sd6l) ranking of Canada's Top Growing Companies\nfor the fourth consecutive year, placing 285th in 2026. The ranking measures\nthree-year revenue growth and is not a measure of Q3 2026 performance.\n\nAbout Avant Brands Inc.\n\nAvant Brands Inc. (TSX:AVNT)(OTCQX:AVTBF)(FRA:1BU0) is a leading innovator in\npremium cannabis products, driven by a commitment to exceptional quality and\ncraftsmanship. As one of Canada's largest indoor producers, the company\noperates multiple production facilities across the country, cultivating unique\nand high-quality cannabis strains.\n\nAvant offers a diverse product portfolio catering to recreational, medical,\nand export markets. Its renowned consumer brands, including BLK MKT™,\nTenzo™, Cognōscente™, flowr™, and Treehugger™, are available in key\nrecreational markets across Canada. The company's international footprint\nspans Australia, Israel, Germany, and the United Kingdom, with its flagship\nbrand BLK MKT™ leading the way. Avant also serves qualified medical patients\nnationwide through its Avant medical cannabis brand, accessible via the Avant\nMedical portal and trusted partner network.\n\nAvant is a publicly traded company, listed on the Toronto Stock Exchange (TSX)\nand accessible to international investors through the OTCQX Best Market\n(OTCQX) and Frankfurt Stock Exchange (FRA). Headquartered in Kelowna, British\nColumbia, the company operates in strategic locations throughout Canada.\n\nLearn More:\n\nFor more information about Avant, including investor presentations and details\nabout its consumer brands, please visit the company website:\nwww.avantbrands.ca\n\nInvestor Relations:\n\nFor inquiries, please contact:\n\nAvant Brands Investor Relations\n1-800-351-6358\nir@avantbrands.ca\n\nNeither TSX nor its Regulation Services Provider (as that term is defined in\npolicies of the TSX) accepts responsibility for the adequacy or accuracy of\nthis release.\n\nCAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:\n\nThis news release includes certain \"forward-looking information\" as defined\nunder applicable Canadian securities legislation, encompassing statements\nregarding Avant Brands Inc.'s (\"Avant\" or the \"Company\") plans, intentions,\nbeliefs, and current expectations concerning future business activities and\noperating performance.\n\nForward looking information is often, but not always, identified by the use of\nwords such as \"expects,\" \"intends,\" \"anticipates,\" \"believes,\" \"estimates,\"\n\"plans,\" \"may,\" \"could,\" \"should,\" \"will,\" or variations of such words and\nphrases. In particular, this news release includes forward looking information\nrelated to, but not limited to: the Company expectations regarding future\nrevenue, sustained gross margins, Adjusted EBITDA performance, and sustainable\nprofitability; the anticipated operating and cultivation benefits resulting\nfrom the completed LED lighting retrofit at the Flowr facility, including\nincreased harvest yields, reduced electrical demand, lower HVAC and utility\noperating costs, and the receipt of up to $2.0 million in non-dilutive\nincentive funding subject to final measurement and verification; the timing,\nprogress, and potential outcome of the EU GMP certification process at the\nFlowr facility, including the remediation of audit observations, the potential\nreceipt of certification from European regulatory authorities, and the\nanticipated impact of certification on expanding international medical exports\nand direct batch release capabilities; the Company strategy to expand branded\nrecreational market share through top performing SKUs under BLK MKT™ and\nTenzo™, portfolio optimization, and retail channel execution across key\nprovincial markets; and expectations regarding corporate capital discipline,\nongoing balance sheet optimization, and the management of outstanding debt\nobligations.\n\nForward-looking information also includes statements concerning the Company's\nongoing focus on operational efficiencies, profitability, and the anticipated\navailability of financial statements and management's discussion and analysis\n(\"MD&A\") on the Company's SEDAR+ profile and website. Investors should be\naware that forward-looking information involves inherent risks, uncertainties,\nand other factors that may cause actual results to differ materially from\nthose expressed or implied by such information. Management's current\nexpectations may not accurately predict future events or outcomes. Therefore,\ninvestors are cautioned not to place undue reliance on forward-looking\ninformation.\n\nInvestors are cautioned that forward-looking information is not based on\nhistorical fact but instead reflects management's expectations, estimates, or\nprojections concerning future results or events based on the opinions,\nassumptions, and estimates of management considered reasonable at the date the\nstatements are made. Although the Company believes that the expectations\nreflected in such forward-looking information are reasonable, such information\ninvolves risks and uncertainties, and undue reliance should not be placed on\nsuch information, as unknown or unpredictable factors could have material\nadverse effects on future results, performance, or achievements of the\nCompany. Among the key factors that could cause actual results to differ\nmaterially from those projected in the forward-looking information are the\nfollowing: regulatory and licensing risks; changes in consumer demand and\npreferences; changes in general economic, business, and political conditions,\nincluding changes in the financial markets; the global regulatory landscape\nand enforcement related to cannabis, including political risks and risks\nrelating to regulatory change; compliance with extensive government\nregulation; public opinion and perception of the cannabis industry; and the\nrisk factors set out in the Company's annual information form dated March 2,\n2026 filed with Canadian securities regulators and available on the Company's\nprofile on SEDAR+ at www.sedarplus.ca.\n\nShould one or more of these risks or uncertainties materialize, or should\nassumptions underlying the forward-looking information prove incorrect, actual\nresults may vary materially from those described herein as intended, planned,\nanticipated, believed, estimated, or expected. Although the Company has\nattempted to identify important risks, uncertainties, and factors that could\ncause actual results to differ materially, there may be others that cause\nresults not to be as anticipated, estimated, or intended. Accordingly, readers\nshould not place undue reliance on forward-looking information, which speaks\nonly as of the date of this news release. The Company disclaims any intention\nor obligation to update or revise any forward-looking information, whether as\na result of new information, future events, or otherwise, except as required\nby law.\n\nSPECIAL NOTE REGARDING FINANCIAL INFORMATION\n\nThis document should be read in conjunction with the Company's unaudited\nconsolidated financial statements (the \"financial statements\") and the\nCompany's MD&A for the three months and nine months ended August 31, 2026, and\naudited consolidated financial statements for the year ended November 30,\n2025. All dollar amounts are referenced in millions of Canadian dollars,\nexcept where noted otherwise. The Company's financial statements and MD&A for\nthe three months and nine months ended August 31, 2026, have been prepared in\naccordance with International Financial Reporting Standards (\"IFRS\") as issued\nby the International Accounting Standards Board (\"IASB\").\n\nAdditional information relating to the Company, including its Annual\nInformation Form for the year ended November 30, 2025, is available on SEDAR+\nat www.sedarplus.ca. Information on the Company's website does not form part\nof and is not incorporated by reference in the Company's MD&A.\n\nSPECIAL NOTE REGARDING NON-GAAP AND OTHER FINANCIAL MEASURES\n\nThis document includes references to non-GAAP measures, which include non-GAAP\nand other financial measures as defined in National Instrument 52-112 -\nNon-GAAP and Other Financial Measures Disclosure. These financial measures are\nused by the Company to evaluate its financial performance, financial position\nor cash flow and include non-GAAP financial measures, non-‍GAAP ratios,\ntotal of segments measures, capital management measures, and supplementary\nfinancial measures. These financial measures are not defined by IFRS and\ntherefore are referred to as non-GAAP and other financial measures. The\nnon-GAAP and other financial measures used by the Company may not be\ncomparable to similar measures presented by other companies and should not be\nconsidered an alternative to or more meaningful than the most directly\ncomparable financial measure presented in the Company's financial statements,\nas applicable, as an indication of the Company's performance. Descriptions of\nthe Company's non-GAAP and other financial measures included in this document,\nand reconciliations to the most directly comparable GAAP measure, as\napplicable, are provided in the \"Cautionary Statement Regarding Certain\nNon-GAAP Performance Measures\" section of the Company's MD&A for the three\nmonths and nine months ended August 31, 2026, dated October 7, 2026.\n\nSOURCE: Avant Brands, Inc.\nView the original press release\n(https://www.accessnewswire.com/newsroom/en/healthcare-and-pharmaceutical/avant-brands-reports-q3-2026-results-highlighted-by-positive-net-inco-1236921)\non ACCESS Newswire\n\n\nCopyright 2026 ACCESS Newswire. All Rights Reserved.","article_body_html":"","raw_payload":{"data":{"id":"nACSc1BFra-20261015","title":"Avant Brands Reports Q3 2026 Results Highlighted by Positive Net Income and 51% Growth in Recreational Revenue","author":"ACCESSWIRE","ticker":"AVNT","created":"2026-10-15T11:30:00.339Z","tickers":["AVNT"],"exchange":"TSX","article_body":"KELOWNA, BC / ACCESS Newswire (https://www.accessnewswire.com/) / October 15,\n2026 / Avant Brands Inc. (TSX:AVNT)(OTCQX:AVTBF)(FRA:1BU0) (\"Avant\" or the\n\"Company\"), a leading producer of innovative and award-winning cannabis\nproducts, today released its financial results for the third quarter ended\nAugust 31, 2026 (\"Q3 2026\").\n\nWith an expanding global footprint, Avant has established itself as a leading\nCanadian producer of ultra-premium cannabis, delivering brands at a commercial\nvolume that continues to be outpaced by market demand.\n\nNorton Singhavon, Founder & CEO of Avant Brands commented:\n\n\"Q3 was an inflection point for Avant. Returning to positive net income of\n$0.2 million and increasing Adjusted EBITDA to $1.3 million reflects our\ndeliberate pivot away from low margin bulk wholesale toward high margin\nbranded recreation. Recreational sales grew 51% to $4.1 million, representing\nmore than half of our net revenue and driven by ongoing market share gains in\nBLK MKT™ and Tenzo™. Operationally, the LED retrofit at Flowr delivered an\nimmediate 57.5% sequential increase in kilograms harvested. Over the past two\nyears we reduced interest bearing debt from $8.1 million to $0.9 million,\ngiving us the financial footing to reinvest in our facilities and build out\nour international export channels.\"\n\nQ3 2026 Financial Highlights (vs. Q3 2025):\n\nRevenue:\n* Gross revenue: $9.0 million (-16%)\n* Net revenue: $7.3 million (-22%)\n* Recreational revenue: $4.1 million (+51%).\n* Export wholesale revenue: $2.1 million (-50%)\n* Domestic wholesale revenue: $1.1 million (-52%)\nGross profit: Gross profit increased to $2.5 million, compared to a gross\nprofit of $1.7 million in Q3 2025.\n\nNet Income: Net income was $0.2 million, compared to a net loss of $1.9\nmillion in Q3 2025.\n\nAdjusted EBITDA(1): Adjusted EBITDA(1) improved to $1.3 million, compared to\n$0.2 million in Q3 2025. The increase was driven by a higher-margin sales mix,\nstronger gross margins, and lower operating expenses. The Flowr lighting\nretrofit contributed an early increase in kilograms harvested at that\nfacility.\n1. Adjusted EBITDA is a non-GAAP performance measure. The information is\nincorporated by reference from the Q3 2026 MD&A filings under \"Cautionary\nStatement Regarding Certain Non-GAAP Performance Measures\". The Company's MD&A\nis available on SEDAR+ at www.sedarplus.com\nBalance Sheet & Liquidity Highlights\n* Cash Position: The Company reported cash amounting to $1.1 million as of\nAugust 31, 2026, compared to $1.5 million at the end of Fiscal 2025.\n* Positive Operating Cash Flow: Avant generated $2.7 million in net cash flows\nfrom operating activities for the nine-month period ended August 31, 2026,\ndemonstrating sustained cash generation from operating activities.\n* Quarterly operating cash flow: Net cash from operating activities was $0.9\nmillion in Q3 2026, compared to $1.1 million in Q3 2025.\n* Continued Debt Reduction: The Company remains committed to prudent capital\nallocation and balance sheet optimization. In less than 24 months, Avant has\nreduced its interest-bearing debt from $8.1 million to $0.9 million, while\ncontinuing to invest in operational improvements, product innovation, and\ninternational growth opportunities.\nQ3 2026 Operational Milestones\n* LED lighting retrofit at Flowr: On July 22, 2026, the Company announced\n(https://pr.report/sd6j) completion of a full LED retrofit of its 80,000\nsquare foot Flowr facility, replacing high-pressure sodium lighting across all\nflower rooms. Project cost was approximately $2.04 million, more than 28%\nunder the original estimate, and is supported by up to $2.0 million in\nnon-dilutive incentive funding, subject to final measurement and verification.\nKilograms harvested at Flowr increased from 807 kg in Q2 2026 to 1,272 kg in\nQ3 2026, up 57.5%.\n* EU-GMP audit completed at Flowr: On August 20, 2026, the Company announced\n(https://pr.report/sd6k) that a qualified German auditing body had completed\nthe on-site EU-GMP audit at Flowr, covering cultivation, harvesting,\nprocessing, and quality management. Certification, if granted, would allow the\nCompany to serve Germany and its other international medical markets with\ngreater control of processing and batch release, rather than relying on a\nEuropean partner.\nCanadian Recreational Highlights:\n\nRecreational revenue increased by 51%, reflecting the Company's execution of a\ndisciplined growth strategy centered on differentiated product innovation, a\nhigher-performing SKU portfolio, and more effective commercialization across\nprovincial markets. Targeted improvements in production efficiency and\nfulfillment have strengthened product availability and supported retail\nsell-through, while continued momentum in Ontario & British Columbia\ndemonstrate the effectiveness of this integrated approach. By identifying\nmarket whitespace and scaling products with proven consumer demand, the\nCompany continues to build a more productive and scalable portfolio designed\nto support financially sustainable long-term growth. This strategy delivered\nthe following market milestones, based on Q3 Ontario Cannabis Store (OCS)\nsales data:\n* Premium Whole Flower Leadership: BLK MKT™ continues to lead Ontario's\npremium flower segment ($8.60/gram and above), holding its position as the #1\nbrand by total sales dollars during the quarter and outperforming more than 50\ncompeting brands.\n* Pre-Roll Category Leadership: BLK MKT™ continued to hold the #1 position\nin overall sales within the single unit pre-roll segment above 1-gram and #2\nfor single unit 1-gram pre-rolls.\n* 14g Whole Flower Leader in Sales: Tenzo™ Big Smallz ranked as the #3\nbest-selling 14-gram whole flower SKU in Ontario by total sales dollars during\nthe quarter, outperforming more than 190 competing SKUs in the category.\n* Leading Milled Offerings: Tenzo™ secured the # 1 and # 2 best-selling SKUs\nin Ontario's multi-pack milled flower segment, while ranking 4th overall in\nthe broader milled flower category among more than 55 competing brands.\nCannabis Production and Sales:\n* Cannabis Production: 3,224 KG (-0.2%). Excluding Flowr, the Company's\ncultivation production continues to operate at an optimized maximum capacity.\nAt Flowr, kilograms harvested increased from 807 kg in Q2 2026 to 1,272 kg in\nQ3 2026, or 57.5%, an early result following commissioning of the LED\nretrofit, with potential for further optimization in subsequent crop cycles.\n* Cannabis Sales: 2,222 KG sold (-34%) with 361 KG comprised of trim.\nQ3 2026 YTD Financial Highlights (vs. Q3 2025 YTD):\n\nRevenue:\n* Gross revenue: $26.6 million (-12%)\n* Net revenue: $22.2 million (-16%)\n* Recreational revenue: $11.7 million (+39%)\n* Export wholesale revenue: $6.6 million (-49%)\n* Domestic wholesale revenue: $3.8 million (-16%)\nGross profit: Gross profit was $2.8 million, compared to $3.1 million in the\ncomparative prior-year period.\n\nThe decrease in gross profit was driven by lower net revenue and a decrease in\nthe unrealized gain on changes in fair value of biological assets as compared\nto the same period in the prior year.\n\nAdjusted EBITDA(1): Adjusted EBITDA(1) was negative $0.6 million, compared to\npositive $3.2 million in the comparative period of the prior year. The\ndecrease in adjusted EBITDA was primarily driven by lower net revenue and\ngross profit.\n1. Adjusted EBITDA is a non-GAAP performance measure. The information is\nincorporated by reference from the Q3 2026 MD&A filings under \"Cautionary\nStatement Regarding Certain Non-GAAP Performance Measures\". The Company's MD&A\nis available on SEDAR+ at www.sedarplus.com\nCannabis Production and Sales:\n* Cannabis Production: 9,080 KG (-8%), reflecting the Company's ongoing\ncultivation optimization initiatives across its production facilities.\n* Cannabis Sales: 9,155 KG sold (-4%), primarily reflecting lower export\nwholesale transactions compared to the prior year period.\nOutlook\n\nManagement expects further operating benefits from the Flowr lighting\nretrofit, including lower energy and HVAC costs and improved cultivation\nperformance, as post-retrofit crop cycles move through production and sale.\nThe Q3 increase in kilograms harvested at Flowr is an early indication, not\nthe full run-rate. The Company will also complete measurement and verification\ntied to the remaining incentive funding.\n\nThe Company will continue the EU-GMP process at Flowr, including remediation\nof audit observations. Certification remains subject to review by the auditing\nbody and has not been granted. Management views certification, if obtained, as\na requirement for future export sales with greater control over processing and\nbatch release. It was not a contributor to Q3 revenue and certification is not\nassured.\n\nAvant will continue to prioritize branded recreational execution in Canada,\nwhere BLK MKT™ and Tenzo™ hold leading positions in Ontario. Additionally,\nthe Company will continue to focus on disciplined capital allocation as\nevidenced by the interest-bearing debt having been reduced from $8.1 million\nto $0.9 million in less than 24 months.\n\nRecent recognition\n\nSubsequent to quarter-end, Avant Brands was named to The Globe and Mail Report\non Business (https://pr.report/sd6l) ranking of Canada's Top Growing Companies\nfor the fourth consecutive year, placing 285th in 2026. The ranking measures\nthree-year revenue growth and is not a measure of Q3 2026 performance.\n\nAbout Avant Brands Inc.\n\nAvant Brands Inc. (TSX:AVNT)(OTCQX:AVTBF)(FRA:1BU0) is a leading innovator in\npremium cannabis products, driven by a commitment to exceptional quality and\ncraftsmanship. As one of Canada's largest indoor producers, the company\noperates multiple production facilities across the country, cultivating unique\nand high-quality cannabis strains.\n\nAvant offers a diverse product portfolio catering to recreational, medical,\nand export markets. Its renowned consumer brands, including BLK MKT™,\nTenzo™, Cognōscente™, flowr™, and Treehugger™, are available in key\nrecreational markets across Canada. The company's international footprint\nspans Australia, Israel, Germany, and the United Kingdom, with its flagship\nbrand BLK MKT™ leading the way. Avant also serves qualified medical patients\nnationwide through its Avant medical cannabis brand, accessible via the Avant\nMedical portal and trusted partner network.\n\nAvant is a publicly traded company, listed on the Toronto Stock Exchange (TSX)\nand accessible to international investors through the OTCQX Best Market\n(OTCQX) and Frankfurt Stock Exchange (FRA). Headquartered in Kelowna, British\nColumbia, the company operates in strategic locations throughout Canada.\n\nLearn More:\n\nFor more information about Avant, including investor presentations and details\nabout its consumer brands, please visit the company website:\nwww.avantbrands.ca\n\nInvestor Relations:\n\nFor inquiries, please contact:\n\nAvant Brands Investor Relations\n1-800-351-6358\nir@avantbrands.ca\n\nNeither TSX nor its Regulation Services Provider (as that term is defined in\npolicies of the TSX) accepts responsibility for the adequacy or accuracy of\nthis release.\n\nCAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:\n\nThis news release includes certain \"forward-looking information\" as defined\nunder applicable Canadian securities legislation, encompassing statements\nregarding Avant Brands Inc.'s (\"Avant\" or the \"Company\") plans, intentions,\nbeliefs, and current expectations concerning future business activities and\noperating performance.\n\nForward looking information is often, but not always, identified by the use of\nwords such as \"expects,\" \"intends,\" \"anticipates,\" \"believes,\" \"estimates,\"\n\"plans,\" \"may,\" \"could,\" \"should,\" \"will,\" or variations of such words and\nphrases. In particular, this news release includes forward looking information\nrelated to, but not limited to: the Company expectations regarding future\nrevenue, sustained gross margins, Adjusted EBITDA performance, and sustainable\nprofitability; the anticipated operating and cultivation benefits resulting\nfrom the completed LED lighting retrofit at the Flowr facility, including\nincreased harvest yields, reduced electrical demand, lower HVAC and utility\noperating costs, and the receipt of up to $2.0 million in non-dilutive\nincentive funding subject to final measurement and verification; the timing,\nprogress, and potential outcome of the EU GMP certification process at the\nFlowr facility, including the remediation of audit observations, the potential\nreceipt of certification from European regulatory authorities, and the\nanticipated impact of certification on expanding international medical exports\nand direct batch release capabilities; the Company strategy to expand branded\nrecreational market share through top performing SKUs under BLK MKT™ and\nTenzo™, portfolio optimization, and retail channel execution across key\nprovincial markets; and expectations regarding corporate capital discipline,\nongoing balance sheet optimization, and the management of outstanding debt\nobligations.\n\nForward-looking information also includes statements concerning the Company's\nongoing focus on operational efficiencies, profitability, and the anticipated\navailability of financial statements and management's discussion and analysis\n(\"MD&A\") on the Company's SEDAR+ profile and website. Investors should be\naware that forward-looking information involves inherent risks, uncertainties,\nand other factors that may cause actual results to differ materially from\nthose expressed or implied by such information. Management's current\nexpectations may not accurately predict future events or outcomes. Therefore,\ninvestors are cautioned not to place undue reliance on forward-looking\ninformation.\n\nInvestors are cautioned that forward-looking information is not based on\nhistorical fact but instead reflects management's expectations, estimates, or\nprojections concerning future results or events based on the opinions,\nassumptions, and estimates of management considered reasonable at the date the\nstatements are made. Although the Company believes that the expectations\nreflected in such forward-looking information are reasonable, such information\ninvolves risks and uncertainties, and undue reliance should not be placed on\nsuch information, as unknown or unpredictable factors could have material\nadverse effects on future results, performance, or achievements of the\nCompany. Among the key factors that could cause actual results to differ\nmaterially from those projected in the forward-looking information are the\nfollowing: regulatory and licensing risks; changes in consumer demand and\npreferences; changes in general economic, business, and political conditions,\nincluding changes in the financial markets; the global regulatory landscape\nand enforcement related to cannabis, including political risks and risks\nrelating to regulatory change; compliance with extensive government\nregulation; public opinion and perception of the cannabis industry; and the\nrisk factors set out in the Company's annual information form dated March 2,\n2026 filed with Canadian securities regulators and available on the Company's\nprofile on SEDAR+ at www.sedarplus.ca.\n\nShould one or more of these risks or uncertainties materialize, or should\nassumptions underlying the forward-looking information prove incorrect, actual\nresults may vary materially from those described herein as intended, planned,\nanticipated, believed, estimated, or expected. Although the Company has\nattempted to identify important risks, uncertainties, and factors that could\ncause actual results to differ materially, there may be others that cause\nresults not to be as anticipated, estimated, or intended. Accordingly, readers\nshould not place undue reliance on forward-looking information, which speaks\nonly as of the date of this news release. The Company disclaims any intention\nor obligation to update or revise any forward-looking information, whether as\na result of new information, future events, or otherwise, except as required\nby law.\n\nSPECIAL NOTE REGARDING FINANCIAL INFORMATION\n\nThis document should be read in conjunction with the Company's unaudited\nconsolidated financial statements (the \"financial statements\") and the\nCompany's MD&A for the three months and nine months ended August 31, 2026, and\naudited consolidated financial statements for the year ended November 30,\n2025. All dollar amounts are referenced in millions of Canadian dollars,\nexcept where noted otherwise. The Company's financial statements and MD&A for\nthe three months and nine months ended August 31, 2026, have been prepared in\naccordance with International Financial Reporting Standards (\"IFRS\") as issued\nby the International Accounting Standards Board (\"IASB\").\n\nAdditional information relating to the Company, including its Annual\nInformation Form for the year ended November 30, 2025, is available on SEDAR+\nat www.sedarplus.ca. Information on the Company's website does not form part\nof and is not incorporated by reference in the Company's MD&A.\n\nSPECIAL NOTE REGARDING NON-GAAP AND OTHER FINANCIAL MEASURES\n\nThis document includes references to non-GAAP measures, which include non-GAAP\nand other financial measures as defined in National Instrument 52-112 -\nNon-GAAP and Other Financial Measures Disclosure. These financial measures are\nused by the Company to evaluate its financial performance, financial position\nor cash flow and include non-GAAP financial measures, non-‍GAAP ratios,\ntotal of segments measures, capital management measures, and supplementary\nfinancial measures. These financial measures are not defined by IFRS and\ntherefore are referred to as non-GAAP and other financial measures. The\nnon-GAAP and other financial measures used by the Company may not be\ncomparable to similar measures presented by other companies and should not be\nconsidered an alternative to or more meaningful than the most directly\ncomparable financial measure presented in the Company's financial statements,\nas applicable, as an indication of the Company's performance. Descriptions of\nthe Company's non-GAAP and other financial measures included in this document,\nand reconciliations to the most directly comparable GAAP measure, as\napplicable, are provided in the \"Cautionary Statement Regarding Certain\nNon-GAAP Performance Measures\" section of the Company's MD&A for the three\nmonths and nine months ended August 31, 2026, dated October 7, 2026.\n\nSOURCE: Avant Brands, Inc.\nView the original press release\n(https://www.accessnewswire.com/newsroom/en/healthcare-and-pharmaceutical/avant-brands-reports-q3-2026-results-highlighted-by-positive-net-inco-1236921)\non ACCESS Newswire\n\n\nCopyright 2026 ACCESS Newswire. All Rights Reserved."},"type":"article","timestamp":"2026-10-15T11:30:00.444297037Z","server_sent_at_ms":1792063800444},"received_at":"2026-10-15T11:30:00.507Z","source_url":"https://www.accessnewswire.com/newsroom/en/healthcare-and-pharmaceutical/avant-brands-reports-q3-2026-results-highlighted-by-positive-net-inco-1236921"},"analysis":{"id":"158319","press_release_id":"170112","analysis_json":{"industry":{"label":"Pharmaceuticals, Biotechnology & Life Sciences","sector":"Health Care"},"redFlags":["Net revenue down 22% YoY; export wholesale down 50% and domestic wholesale down 52%","YTD Adjusted EBITDA negative $0.6 million vs positive $3.2 million prior year","Cash declined to $1.1 million from $1.5 million at fiscal 2025 year-end","EU-GMP certification not yet granted and not assured; requires remediation of audit observations"],"eventType":"earnings","narrative":"Avant Brands returned to positive net income of $0.2 million in Q3 2026 with Adjusted EBITDA improving to $1.3 million, driven by a pivot toward high-margin branded recreational cannabis.\n\nRecreational revenue grew 51% to $4.1 million, but total net revenue fell 22% to $7.3 million as export and domestic wholesale declined sharply; YTD Adjusted EBITDA remains negative at $0.6 million.\n\nThe Flowr LED retrofit lifted harvests 57.5% sequentially to 1,272 kg, and interest-bearing debt has been cut from $8.1 million to $0.9 million over two years; EU-GMP certification at Flowr remains pending and not assured.","sentiment":"mixed","agentHooks":{"shouldPost":true,"suggestedAngle":"Margin-mix inflection: positive net income and 51% recreational growth offset a steep wholesale-led revenue decline."},"keyFigures":{"eps":0,"revenue":"$7.3 million net revenue (Q3 2026)","revenueYoy":"-22%","customDimensions":{"cash":"$1.1 million","net_income":"$0.2 million","gross_profit":"$2.5 million","gross_revenue":"$9.0 million (-16%)","adjusted_ebitda":"$1.3 million","ytd_net_revenue":"$22.2 million (-16%)","flowr_harvest_kg":"1,272 kg (+57.5% vs 807 kg in Q2)","ytd_adjusted_ebitda":"negative $0.6 million","recreational_revenue":"$4.1 million (+51%)","interest_bearing_debt":"$0.9 million (down from $8.1 million)","operating_cash_flow_q3":"$0.9 million","operating_cash_flow_ytd":"$2.7 million","export_wholesale_revenue":"$2.1 million (-50%)","domestic_wholesale_revenue":"$1.1 million (-52%)"}},"quotedText":"Q3 was an inflection point for Avant. Returning to positive net income of $0.2 million and increasing Adjusted EBITDA to $1.3 million reflects our deliberate pivot away from low margin bulk wholesale toward high margin branded recreation.","namedEntities":{"people":[{"name":"Norton Singhavon","role":"Founder & CEO"}],"products":["BLK MKT","Tenzo","Tenzo Big Smallz","Cognōscente","flowr","Treehugger"],"companies":[{"name":"Avant Brands Inc.","ticker":"AVNT","relationship":"filer"},{"name":"Ontario Cannabis Store (OCS)","relationship":"customer/distribution channel"}],"dollarAmounts":[{"amount":"$0.2 million","context":"Q3 2026 net income"},{"amount":"$1.3 million","context":"Q3 2026 Adjusted EBITDA"},{"amount":"$4.1 million","context":"Q3 recreational revenue"},{"amount":"$7.3 million","context":"Q3 net revenue"},{"amount":"$8.1 million","context":"prior interest-bearing debt balance"},{"amount":"$0.9 million","context":"current interest-bearing debt balance"},{"amount":"$2.04 million","context":"Flowr LED retrofit cost"},{"amount":"$2.0 million","context":"non-dilutive incentive funding"},{"amount":"$1.1 million","context":"cash position as of August 31, 2026"}]},"materialImpact":{"score":3,"reasoning":"Return to positive net income, +51% recreational revenue, and Adjusted EBITDA improvement mark a real inflection, but net revenue fell 22% YoY as wholesale declined; mixed quarter for a small-cap."},"tickerRelevance":{"others":[],"primary":"AVNT"},"globalImportance":18,"audienceRelevance":15,"eventTypeSecondary":[],"importanceComponents":{"tickerTier":"small-cap","eventGravity":"quarterly-earnings-mixed","sectorWeight":"cannabis-niche","issuerAuthored":true}},"event_type":"earnings","event_type_secondary":null,"sentiment":"mixed","material_impact_score":3,"narrative":"Avant Brands returned to positive net income of $0.2 million in Q3 2026 with Adjusted EBITDA improving to $1.3 million, driven by a pivot toward high-margin branded recreational cannabis.\n\nRecreational revenue grew 51% to $4.1 million, but total net revenue fell 22% to $7.3 million as export and domestic wholesale declined sharply; YTD Adjusted EBITDA remains negative at $0.6 million.\n\nThe Flowr LED retrofit lifted harvests 57.5% sequentially to 1,272 kg, and interest-bearing debt has been cut from $8.1 million to $0.9 million over two years; EU-GMP certification at Flowr remains pending and not assured.","key_figures":{"eps":0,"revenue":"$7.3 million net revenue (Q3 2026)","revenueYoy":"-22%","customDimensions":{"cash":"$1.1 million","net_income":"$0.2 million","gross_profit":"$2.5 million","gross_revenue":"$9.0 million (-16%)","adjusted_ebitda":"$1.3 million","ytd_net_revenue":"$22.2 million (-16%)","flowr_harvest_kg":"1,272 kg (+57.5% vs 807 kg in Q2)","ytd_adjusted_ebitda":"negative $0.6 million","recreational_revenue":"$4.1 million (+51%)","interest_bearing_debt":"$0.9 million (down from $8.1 million)","operating_cash_flow_q3":"$0.9 million","operating_cash_flow_ytd":"$2.7 million","export_wholesale_revenue":"$2.1 million (-50%)","domestic_wholesale_revenue":"$1.1 million (-52%)"}},"named_entities":{"people":[{"name":"Norton Singhavon","role":"Founder & CEO"}],"products":["BLK MKT","Tenzo","Tenzo Big Smallz","Cognōscente","flowr","Treehugger"],"companies":[{"name":"Avant Brands Inc.","ticker":"AVNT","relationship":"filer"},{"name":"Ontario Cannabis Store (OCS)","relationship":"customer/distribution channel"}],"dollarAmounts":[{"amount":"$0.2 million","context":"Q3 2026 net income"},{"amount":"$1.3 million","context":"Q3 2026 Adjusted EBITDA"},{"amount":"$4.1 million","context":"Q3 recreational revenue"},{"amount":"$7.3 million","context":"Q3 net revenue"},{"amount":"$8.1 million","context":"prior interest-bearing debt balance"},{"amount":"$0.9 million","context":"current interest-bearing debt balance"},{"amount":"$2.04 million","context":"Flowr LED retrofit cost"},{"amount":"$2.0 million","context":"non-dilutive incentive funding"},{"amount":"$1.1 million","context":"cash position as of August 31, 2026"}]},"model_name":"glm-5.3-flashx","prompt_hash":"sha256:5c812bd9e28b810d","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-10-15T11:30:08.400Z","global_importance":18,"audience_relevance":15,"importance_components":{"tickerTier":"small-cap","eventGravity":"quarterly-earnings-mixed","sectorWeight":"cannabis-niche","issuerAuthored":true}},"durationMs":7854,"modelName":"glm-5.3-flashx"}}