Herbal Dispatch Reports Q4 2025 Gross Sales of $6.2 Million, Achieves Positive Adjusted EBITDA, and Reports Full Year Gross Sales of $16.5 Million

Vancouver, British Columbia--(Newsfile Corp. - April 24, 2026) - Herbal Dispatch Inc. (CSE: HERB) (OTCQB: LUFFF) (FSE: HA9) ("Herbal Dispatch" or the "Company"), announces its financial results for the fourth quarter and year ended December 31, 2025.

Q4 2025 HIGHLIGHTS

• Gross sales of $6.2 million, representing a 115% increase compared to $2.9 million in Q4 2024

• Net revenue of $4.1 million (excluding excise taxes), up from $2.3 million in Q4 2024

• Adjusted EBITDA of $0.1 million, compared to $(0.6) million in Q4 2024

• Adjusted EBITDA of $0.2 million excluding non-recurring costs related to investor relations and financing

FY 2025 HIGHLIGHTS

• Gross sales of $16.5 million, representing a 37% increase compared to $12.1 million in 2024

• Net revenue of $12.1 million (excluding excise taxes), up from $9.9 million in 2024

• Adjusted EBITDA of $(0.7) million, improved from $(1.0) million in 2024

• Gross margin improved to approximately 22.7% in 2025, compared to 20.1% in 2024, reflecting enhanced cost of goods efficiency, improved product mix, and increasing scale across the Company's platform and the Company expects continued improvement into 2026 as scale and operating leverage continues to increase.

STRATEGIC MOMENTUM

• Completed an oversubscribed non-brokered private placement, raising $2.1 million in October 2025

• Commenced trading on the OTCQB® Venture Market under the ticker LUFFF subsequent to year end

FINANCIAL PERFORMANCE

For the three months ended December 31, 2025, gross sales increased by 115% to $6.2 million compared to $2.9 million in Q4 2024. Net revenue, excluding excise taxes, increased to $4.1 million compared to $2.3 million in the prior year quarter. The increase was driven by higher sales volumes across both medical and recreational channels and continued growth within the Company's e-commerce platform.

As of this period, the Company's path to profitability is increasingly driven by expanding gross margins, with gross profit growing to $2.75 million in 2025 from $2.0 million in 2024, reflecting improved cost of goods sold efficiency and increasing operating leverage across the platform.

Gross profit improved in Q4 2025 as a result of increased scale and improving operating efficiencies. Cost of goods sold as a percentage of sales declined year-over-year, reflecting enhanced purchasing power, optimized product mix, and improved supply chain execution. This expansion in gross margin is a key driver of the Company's path to sustained profitability and operating leverage.

Adjusted EBITDA improved significantly in Q4 2025 to positive $0.1 million, compared to negative $0.6 million in Q4 2024, driven primarily by increased scale and improved gross margins. Excluding certain non-recurring investor relations costs and professional fees related to the October 2025 private placement, adjusted EBITDA for Q4 2025 would have been positive $0.2 million.

For the full year ended December 31, 2025, adjusted EBITDA improved by 30% to negative $0.7 million compared to negative $1.0 million in 2024, reflecting continued progress toward profitability.

MANAGEMENT COMMENTARY

"The fourth quarter of 2025 marked a major step forward for Herbal Dispatch, as we delivered record quarterly gross sales and achieved positive adjusted EBITDA," said Philip Campbell, President & CEO of Herbal Dispatch. "We have now achieved double-digit growth for the third consecutive year, reflecting the strength of our platform, our customer relationships, and our ability to expand across both Canadian and international markets."

"Looking ahead to 2026, our focus remains on scaling profitably, expanding our recreational footprint, growing medical sales-particularly among veterans-and accelerating export growth into federally legal international markets. With strong sales momentum and the added visibility of our OTCQB listing, we believe we are well-positioned to create long-term value for shareholders."

CONSOLIDATED FINANCIAL STATEMENTS

The Company's consolidated financial statements and management's discussion & analysis for the year ended December 31, 2025 are available on the Company's profile on SEDAR⁺ at www.sedarplus.ca and will also be posted on the Company's website at www.herbaldispatch.com.

ABOUT HERBAL DISPATCH INC.

Herbal Dispatch Inc. is a leading operator of cannabis e-commerce platforms in Canada, delivering quality medical and recreational products to discerning consumers at competitive prices. Its flagship marketplace has earned trust as a premier destination for exclusive access to small-batch craft cannabis and a wide selection of curated cannabis products. The Company is also actively expanding through exports to international markets, positioning it for sustained growth and new revenue opportunities. The Company's common shares trade on the Canadian Securities Exchange under the symbol "HERB".

NON-IFRS MEASURES

Adjusted EBITDA is defined as earnings before interest, income taxes, depreciation, amortization, share based compensation, loss (gain) on disposal of assets, loss (gain) on investments, loss (gain) on extinguishment of debt, impairment losses, loss (gain) on foreign exchange and accretion expense. The Company believes that, in addition to net income (loss), adjusted EBITDA is a useful measure as it provides an indication of the financial results generated by its principal business activities prior to consideration of how these activities are financed or how the results are taxed in various jurisdictions and before certain non-cash items such as depreciation, amortization, and other items. Adjusted EBITDA does not have any standardized meaning as prescribed by IFRS and therefore, is considered a non-IFRS measure and may not be comparable to similar measures presented by other issuers.

A reconciliation of net loss to adjusted EBITDA for each of the periods presented in this news release follows:

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION:

Certain statements in this news release, including statements or information containing terminology such as "anticipate", "believe", "intend", "expect", "estimate", "may", "could", "will", and similar expressions constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, that address activities, events, or developments that the Company or a third party expect or anticipate will or may occur in the future, including the Company's future growth, results of operations, performance, and business prospects and opportunities are forward-looking statements. These forward-looking statements reflect the Company's current beliefs and are based on information currently available to the Company. These statements require the Company to make assumptions it believes are reasonable and are subject to inherent risks and uncertainties.

Actual results and developments may differ materially from the anticipated results and developments discussed in the forward-looking statements as certain of these risks and uncertainties are beyond the Company's control. These risk factors are interdependent and the impact of any one risk or uncertainty on a particular forward-looking statement is not determinable. Examples of forward-looking statements in this news release and the key assumptions and risk factors involved in such statements include, but are not limited to, executing our strategic growth initiatives for 2026, which includes growing our medical sales to Veterans, expanding recreational sales and growing export sales. The successful execution of these initiatives is subject to a number of risks and uncertainties, including industry competition, and future customer demand for our products, among others.

Consequently, all of the forward-looking statements made in this news release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected effects on the Company. These forward-looking statements are made as of the date of this news release. Except as required by applicable securities legislation, the Company assumes no obligation to update publicly or revise any forward-looking statements to reflect subsequent information, events, or circumstances.

THE CANADIAN SECURITIES EXCHANGE (THE "CSE") HAS NEITHER APPROVED NOR DISAPPROVED THE CONTENTS OF THIS NEWS RELEASE. NEITHER THE CSE OR ITS MARKET REGULATOR (AS THAT TERM IS DEFINED IN THE POLICIES OF THE CSE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/294073

Source: Herbal Dispatch Inc.

© 2026 Newsfile Corp. All rights reserved.

Read More..

The news, reports, views and opinions of authors (or source) expressed are their own and do not necessarily represent the views of CRWE World.