MONTREAL, June 25, 2026 /CNW/ - Mercanto Holdings Inc. (TSXV: MUSH) ("Mercanto" or the "Company") today reported financial results for its third quarter of fiscal 2026, ended April 30, 2026. The Company remained profitable in the quarter, the results of which reflect a temporary normalization of provincial vape-cartridge ordering following the category's launch, together with the planned suspension of certain THC-infused edible products. The unaudited condensed interim consolidated financial statements and related management's discussion and analysis ("MD&A") are available under the Company's profile on SEDAR+.
Q3 Fiscal 2026 Highlights (vs. Q3 Fiscal 2025)
Revenue of $1,222,205 (Q3 2025: $887,862), up approximately 38% year-over-year;
Net revenue, after excise taxes, of $1,089,866 (Q3 2025: $756,556), up approximately 44%;
Gross profit of $410,276 (Q3 2025: $170,448), with gross margin expanding to 37.6% from 22.5%;
Net income of $119,493, a return to profitability versus a net loss of $(88,366) in Q3 2025;
Year-to-date (nine months ended April 30, 2026) revenue of $4,199,038 (prior year: $2,715,203), up approximately 55%, with year-to-date net income of $145,212 versus a net loss of $(254,438) a year earlier;
EBITDA of $158,038;
Cash of $542,380 at quarter-end, up approximately 108% year-over-year;
Current on all cannabis excise tax obligations, paid in full and on time as of the date of this release;
No long-term debt, other than lease liabilities; and
51,674,683 common shares outstanding, reflecting limited dilution since going public.
The Company stayed profitable and grew revenue approximately 38% year-over-year, even as third-quarter revenue eased from a record second quarter while the province worked down its vape launch inventory.
"This was a timing reset in the channel, not a change in demand," said Scott Jardin, Chief Financial Officer of Mercanto. "Provincial orders pulled back while the launch inventory was drawn down, and consumer sell-through held up throughout. Our asset-light model is exactly what lets us absorb a soft quarter and remain in the black — with no long-term debt, our excise paid in full, and no need to dilute shareholders to fund the business. That discipline keeps Mercanto financially sound and resilient, and positions it to capture a larger share of the market over the longer term as weaker operators retreat."
Consumer sell-through of the Company's products held steady and, in certain weeks, increased during the quarter. Because reported revenue reflects provincial ordering rather than consumer purchasing, management believes it understates the underlying demand the Company's vape products were generating at retail.