KELOWNA, BC / ACCESS Newswire / July 15, 2026 / Avant Brands Inc. (TSX:AVNT)(OTCQX:AVTBF)(FRA:1BU0) ("Avant" or the "Company"), a leading producer of innovative and award-winning cannabis products, today released its financial results for the second quarter ended May 31, 2026 ("Q2 2026").
With an expanding global footprint, Avant has established itself as a leading Canadian producer of ultra-premium cannabis, delivering brands at a commercial volume that continues to be outpaced by market demand.
Norton Singhavon, Founder & CEO of Avant Brands commented:
"Our Q2 results highlight the momentum of our recreational portfolio, with 34% year-to-date growth and top market share positions for BLK MKT™ and Tenzo™ in Ontario. While production was temporarily impacted by staggered room closures for strategic infrastructure upgrades at our Flowr facility, this investment was essential to meet consumer demand and expand our future capabilities. Just as importantly, we utilized our strong cash flow to continue aggressively de-leveraging the Company. In under 24 months, we have eliminated nearly 90% of our total outstanding debt, reducing $8.1 million in total interest-bearing debt (from Q3 2024), to $1.03 million as at date of this news release. Avant is now leaner and well positioned for its next phase of profitable, sustainable growth."
Q2 2026 Financial Highlights (vs. Q2 2025):
Revenue:
Gross revenue: $9.2 million (-5%)
Net revenue: $7.8 million (-8%)
Recreational revenue: $3.8 million (+31%).
Export wholesale revenue: $2.9 million (-29%)
Domestic wholesale revenue: $1.1 million (-16%)
Gross profit: Gross profit increased to $0.2 million, compared to a gross loss of $0.2 million in Q2 2025.
Adjusted EBITDA1: Adjusted EBITDA1 was negative $1.2 million, compared to positive $1.2 million in Q2 2025. The decrease was primarily driven by lower net revenue resulting from the staggered room closures for infrastructure upgrades at The Flowr Group Okanagan ("Flowr"), combined with the timing of the Health Canada Annual Regulatory Fee, which was fully recognized in the second quarter rather than accrued evenly over the year.
(1) Adjusted EBITDA is a non-GAAP performance measure. The information is incorporated by reference from the Q2 2026 MD&A filings under "Cautionary Statement Regarding Certain Non-GAAP Performance Measures". The Company's MD&A is available on SEDAR+ at www.sedarplus.com
Balance Sheet & Liquidity Highlights
Strong Cash Growth: The Company's cash balance increased significantly to $3.3 million as of May 31, 2026, compared to $1.5 million at the end of Fiscal 2025.
Positive Operating Cash Flow: Avant generated $1.7 million in net cash flows from operating activities for the six-month period ended May 31, 2026, demonstrating sustained cash-generation capability despite the lower top-line revenue and gross margins during the quarter.
Non-Dilutive Funding Inflow: Capital resources were further bolstered by $1.8 million in cash proceeds received from a government grant program, which directly funded the facility-wide LED lighting cultivation upgrade project at the Flowr facility.
Active Debt Reduction: The Company utilized its strong capital position to deploy $1.8 million toward financing activities during the period, continuing to rapidly de-leverage its balance sheet. In less than 24 months, Avant has successfully reduced its total outstanding interest-bearing debt from approximately $8.1 million down to just $1.03 million as of the date of this news release. The remaining $1.03 million balance is comprised of $747k on the unsecured convertible debenture B and $287k on the secured credit facility.