Purebread Brands Inc. Reports Q3 2026 Results

• Year-to-date adjusted EBITDA (1): $1.8 million, improved 905% YoY
• Year-to-date gross margin: 64%, improved from 62% YoY
• Year-to-date operating expenses: decreased 27% YoY

Vancouver, British Columbia–(Newsfile Corp. – February 27, 2026) – Purebread Brands Inc. (TSXV: BRED) (“Purebread” or the “Company”) is pleased to announce its financial results for the three and nine months ended December 31, 2025, the highlights of which are included in this news release. The full set of Condensed Consolidated Interim Financial Statements and Management Discussion and Analysis can be viewed by visiting the Company’s website at www.purebreadbrands.com or its SEDAR+ profile at www.sedarplus.ca.

Financial Highlights – Nine Months Ended December 31, 2025

• Adjusted EBITDA of $1.8 million, a 905% improvement from an Adjusted EBITDA of $0.2 million in the prior year period. Improvements in Adjusted EBITDA are as a result of continued initiatives to optimize operations and improve cost efficiency across the business.

• Gross margin increased year-over-year to 64% from 62% in the prior year period. The increase in gross margin was primarily driven by the Company’s strategic rationalization of operations, including a shift in focus toward its core bakery business and reduced emphasis on the Coho Kitchens, resulting in lower overall costs.

• Operating expenses decreased 27% year-over-year. The decrease in the operating expenses aligns with management’s cost-reduction efforts and continued focus on streamlining the business going forward.

• Revenue decreased 9% year-over-year from $12.5M to $11.3M year-over-year due to the closure of underperforming assets.

		Three Months Ended  December 31,  2025			Three Months Ended  December 31,  2024			Nine months Ended  December 31,  2025			Nine months Ended December 31, 2024
Net income (loss)	$	185,790		$	(1,540,511	)	$	3,235,926		$	(4,513,217	)
Amortization		279,932			490,157			798,538			1,607,730
Accretion		98,193			93,525			313,534			296,906
Gain on debt-to-equity settlement		(743,486	)		–			(4,514,178	)		–
Interest		493,625			697,434			1,935,180			2,132,424
Share based compensation		10,997			47,966			27,890			177,275
Loss on provision for facility related obligations		–			477,750			–			477,750
Adjusted EBITDA		325,051			266,321			1,796,890			178,868

 

(1) Adjusted EBITDA is a non-IFRS measure defined as earnings (or loss) before interest, taxes, depreciation and amortization, adjusted for share based compensation, accretion, loss on provision for facility related obligations, and gain on debt-to-equity settlement

• Interim CEO Amrit Maharaj commented on the results:

“As a result of focusing more on our core bakery operations and advancing our cost-reduction initiatives, we have achieved significant progress. These efforts have significantly strengthened our year-to-date adjusted EBITDA and set a solid foundation for sustainable growth and long-term profitability.”

Year-To-Date Company Highlights

Streamlined Shared Kitchen Operations

• Cost reductions: Continued to lower operating expenses, with further profit maximization efforts planned for future quarters.
• Closures: Transitioned two Coho Commissary locations (Pandora Street and Gibsons) on September 5, 2025, back to landlords, and closed the East Hastings and Victoria Public Market sites. These strategic changes will help streamline operations and allocate resources toward expanding Purebread Bakery.

Corporate Initiatives

• Completed two tranches of debt-to-equity conversion transactions under which it issued 4,379,162 common shares and 2,189,581 share purchase warrants to settle $4,752,840 of outstanding debt at a conversion price of $1.25 per unit, strengthening the Company’s balance sheet and enhancing financial flexibility for future growth initiatives.
• Implemented a 5-for-1 Common Share consolidation to optimize its capital structure and enhance the long-term value for shareholders.

About Purebread Brands Inc.:

Purebread Brands Inc. is a leader in fast-casual cafe / bakeries in British Columbia, driving retail expansion in vibrant communities across Canada and beyond. Purebread is committed to crafting exceptional food experiences and making a positive impact on the communities it serves.

For more information and updated investor presentation, please visit www.purebreadbrands.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Non-IFRS Measures, Reconciliation and Discussion

This press release contains references to “Adjusted EBITDA” that is a non-IFRS financial measures. Adjusted EBITDA is defined as earnings (or loss) before interest, taxes, depreciation and amortization, adjusted for share based compensation, accretion, loss on provision for facility related obligations, and gain on debt-to-equity settlement, and is a non-IFRS measure.

For Adjusted EBITDA: This measure can be used to analyze and compare profitability among companies and industries, as it eliminates the effects of financing and capital expenditures. It is often used in valuation ratios and can be compared to enterprise value and revenue. This measure does not have any standardized meaning according to IFRS and, therefore, may not be comparable to similar measures presented by other companies.

There are no comparable IFRS financial measures presented in Purebread’s financial statements. Reconciliations of the supplemental non-IFRS measure are presented in the Company’s MD&A for the nine months ended December 31, 2025 (“Q3 2026 MD&A”). This non-IFRS financial measure is presented because management has evaluated the financial results both including and excluding the adjusted items and believes that the non-IFRS financial measure presented provides additional perspective and insights when analyzing the core operating performance of the business. The Company believes that the supplemental measure provides information which is useful to shareholders and investors in understanding the Company’s performance and may assist in the evaluation of the Company’s business relative to that of its peers.

The non-IFRS financial measure should not be considered superior to, as a substitute for, or as an alternative to, and should be considered in conjunction with the IFRS financial measures presented in the Company’s financial statements. For more information, please see “Adjusted EBITDA (non-IFRS measure)” in the Company’s Q3 2026 MD&A, which is available under the Company’s System for Electronic Document Analysis and Retrieval (“SEDAR+”) profile on www.sedarplus.ca.

Forward-Looking Information

This press release may contain “forward-looking statements” and “forward-looking information” (collectively, “forward-looking statements”) within the meaning of applicable securities legislation, which reflect management’s current expectations regarding future events. Such forward-looking statements include, but are not limited to, forward-looking statements with respect to plans, intentions, beliefs, and current expectations of the Company with respect to future business activities, expansion and operating performance.

Forward-looking statements are frequently characterized by words such as “plan”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “expect” and other similar words, or statements that certain events or conditions “may” or “will” occur. Although the Company’s management believes that the assumptions made (and the expectations represented by such forward-looking statements) are reasonable, there can be no assurance that any forward-looking statements referenced herein will prove to be accurate.

Forward-looking statements are not based on historical facts but instead reflect the opinions and estimates of management at the date the statements are made and are subject to a variety of risks, uncertainties, and other factors that could cause actual results or events to differ materially from those anticipated in the forward-looking statements. These risks, uncertainties, and other factors that could cause actual results to differ materially from those in forward-looking statements include: reliance on key personnel, protection of our intellectual property rights, competition, a failure to establish additional locations, disruption at our facilities, global pandemics (such as COVID-19) and corresponding impacts on the Company’s business, government regulation of the virtual kitchen industry, the price of raw materials, consumer trends, climate change, cybersecurity, food safety and consumer health, brand value, internet search algorithms, reputation risk, risks associated with leasing commercial and retail space, effect of service and facility innovation, failure to retain current members and/or recruit new members, litigation risk, failure to meet expectations of our values & metrics, risks associated with acquisitions, management of growth, a history of losses, negative cash flow, additional funding requirements and risks, dividend risk, increased costs of being a publicly traded company, global economic risk, and share price volatility risk.

The Company undertakes no obligation to update forward-looking statements if circumstances or management’s estimates should change, except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. More detailed information about potential factors that could affect results is included in the documents that may be filed from time to time with Canadian securities regulatory authorities by the Company.

For a more detailed discussion of certain of these risk factors, see the heading “Risk Factors” in the Company’s most recent MD&A, available under the Company’s SEDAR+ profile at www.sedarplus.ca.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/285762