Cannara Biotech (LOVE) AI Stock Analysis

• Market Cap: C$167.62M
• Dividend Yield: N/A
• Average Volume (3M): 45.69K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.34
• Revenue Growth: 30.64%
• EPS Growth: 101.12%
• Country: CA
• Employees: 461
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.01
• Shares Outstanding: 95,782,150
• 10 Day Avg. Volume: 37,006
• 30 Day Avg. Volume: 45,690
• PEG Ratio: 0.13
• Price to Book (P/B): 1.64
• Price to Sales (P/S): 1.57
• P/FCF Ratio: 12.31
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: C$2.00 ▲(9.29% Upside)

The score is driven primarily by solid financial performance—healthy margins, steady revenue growth, and improving leverage—offset by weaker/less consistent free cash flow. Technicals are mixed with neutral momentum and slight short-term softness, while valuation appears reasonable based on the P/E.

Positive Factors

Strong profitability margins

Sustained high gross and operating margins indicate structural cost control and pricing power in cultivation and value-added products. Healthy margins support reinvestment in facilities, R&D and distribution, cushioning the business through regulatory or cyclical fluctuations over months.

Consistent revenue expansion

Ongoing revenue growth across periods reflects market share gains and diversified product mix (cultivation, extraction, infused products). Durable top-line expansion supports scale economies, channel partnerships and long-term capacity utilization over the next several quarters.

Improving leverage profile

Falling leverage and rising equity reduce financial risk and increase strategic flexibility for capex, expansion or M&A. A healthier balance sheet lowers refinancing pressure and enhances resilience to margin or demand shocks over a multi-month horizon.

Negative Factors

Declining and volatile free cash flow

A drop and historical volatility in free cash flow undermines the firm's consistent ability to self-fund capex, repay debt or pursue strategic investments. This variability increases reliance on external financing and raises execution risk during adverse market moves.

Meaningful absolute debt level

Despite improving leverage ratios, a material $34.9M debt load still creates fixed obligations that can constrain cash flow allocation. In a softening demand or margin scenario, servicing this debt could limit capital flexibility and slow strategic initiatives.

Earnings normalization vs prior year

A decline from last year's higher profit level suggests demand or margin pressures and reduces retained earnings for reinvestment. Prolonged normalization could compress growth investments and elevate sensitivity to cost inflation or regulatory headwinds.

Cannara Biotech Business Overview & Revenue Model

Company Description

Cannara Biotech Inc., together with its subsidiaries, engages in the indoor cultivation, processing, and sale of cannabis and cannabis-derivated products in Canada. It also offers hemp-based CBD products through e-commerce platform. The company was incorporated in 2017 and is headquartered in Saint-Laurent, Canada.

How the Company Makes Money

Cannara Biotech generates revenue through multiple streams, primarily by selling its cannabis products to retail dispensaries and directly to consumers through its online platform. The company benefits from the growing legalization of cannabis in various jurisdictions, allowing it to expand its market reach. Key revenue streams include wholesale distribution to licensed retailers, direct sales through e-commerce, and potential partnerships with other cannabis companies for co-branding and product development. Additionally, Cannara's focus on quality and compliance with regulatory standards enhances its marketability and pricing power, contributing to its overall profitability.

Cannara Biotech Financial Statement Overview

Summary

Strong operating profile with revenue up ~4.7% TTM, healthy profitability (gross margin ~44%, EBIT margin ~20%, net margin ~12%), and improving leverage (debt-to-equity ~0.41). The score is tempered by slightly lower TTM net income vs FY2025 and weaker/volatile free cash flow (FCF ~$11.0M TTM, ~-14% vs prior annual period, with historical inconsistency).

Income Statement

TTM (Trailing-Twelve-Months) revenue is up (about +4.7%), continuing a multi-year expansion, and profitability is solid with healthy gross profit (~44%) and net margin (~12%). Operating profitability remains strong (EBIT margin ~20%), although earnings are slightly below the most recent annual level (net income ~$11.8M TTM vs ~$13.1M in FY2025), suggesting some near-term normalization after a very strong prior year.

Balance Sheet

Leverage is moderate and improving: debt-to-equity is ~0.41 in the latest periods, down from higher levels in FY2022–FY2024, alongside rising equity. Returns on equity are healthy (~11.6% TTM), but total debt remains meaningful (~$34.9M TTM), which could limit flexibility if margins or demand weaken.

Cash Flow

Cash generation is positive with operating cash flow of ~$20.8M TTM and free cash flow of ~$11.0M TTM, but free cash flow declined (~-14% growth TTM) versus the prior annual period. Cash conversion is decent (free cash flow is ~67% of net income), yet operating cash flow relative to net income is only moderate and historical volatility is notable (including negative free cash flow in FY2022–FY2023).

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	107.32M	81.75M	57.26M	35.84M	17.02M
Gross Profit	47.22M	29.79M	27.23M	17.33M	10.30M
EBITDA	28.18M	15.16M	15.77M	9.54M	3.22M
Net Income	13.08M	6.44M	6.95M	2.31M	-3.09M
Balance Sheet
Total Assets	168.65M	154.72M	141.52M	125.62M	92.02M
Cash, Cash Equivalents and Short-Term Investments	14.36M	6.62M	4.27M	12.11M	8.16M
Total Debt	41.58M	48.33M	45.78M	48.39M	20.90M
Total Liabilities	66.43M	66.77M	61.78M	58.88M	27.91M
Stockholders Equity	102.22M	87.95M	79.74M	66.74M	64.12M
Cash Flow
Free Cash Flow	13.65M	3.21M	-4.44M	-21.55M	-33.17M
Operating Cash Flow	20.01M	10.68M	5.44M	-6.08M	-2.09M
Investing Cash Flow	-5.95M	-5.19M	-9.48M	-15.35M	-30.83M
Financing Cash Flow	-6.32M	-3.14M	-3.72M	25.46M	33.25M

Cannara Biotech Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.83
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LOVE, the sentiment is Neutral. The current price of 1.83 is below the 20-day moving average (MA) of 1.85, above the 50-day MA of 1.77, and above the 200-day MA of 1.64, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 43.37 is Neutral, neither overbought nor oversold. The STOCH value of 15.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:LOVE.

Cannara Biotech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LOVE	67 Neutral	C$167.62M	13.54	13.39%	―	30.64%	101.12%
XLY	67 Neutral	C$184.55M	3.94	31.46%	―	27.38%	―
OGI	54 Neutral	C$274.06M	-10.00	-7.93%	―	62.15%	60.50%
GRIN	52 Neutral	C$139.77M	15.05	15.32%	―	-18.30%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
JUSH	47 Neutral	C$149.49M	-1.62	―	―	3.17%	-24.07%
CBST	37 Underperform	C$227.80M	-1.07	―	―	-26.73%	-32.33%

Cannara Biotech Corporate Events

Cannara Biotech Secures Conditional TSX Approval in Strategic Uplisting Move

Cannara Biotech has received conditional approval to move its common share listing from the TSX Venture Exchange to the Toronto Stock Exchange, a step the company views as a key validation of its strategy and operations. The planned uplisting, which will see its shares continue trading under the symbol “LOVE” once final TSX listing conditions are met, is expected to enhance the company’s visibility among institutional investors and improve trading liquidity for shareholders, underscoring its growth ambitions in Canada’s competitive cannabis sector.

The most recent analyst rating on (TSE:LOVE) stock is a Buy with a C$2.00 price target. To see the full list of analyst forecasts on Cannara Biotech stock, see the TSE:LOVE Stock Forecast page.

Cannara Biotech Posts Record Q1 2026 Results and Expands Canadian Cannabis Market Share

Cannara Biotech reported record first-quarter fiscal 2026 results, with total revenues of $30.1 million, gross profit before fair value adjustments of $13.5 million representing a 45% margin, and adjusted EBITDA of $8.8 million, supported by $8.0 million in operating cash flow and $3.3 million in free cash flow. The company continued to gain traction nationally, lifting its estimated Canadian retail market share to 4.1% from 3.8% in the previous quarter, achieving a #1 position in Québec by December 2025 after a successful vape launch and posting ongoing growth in Ontario. Management highlighted that higher production volumes, improved yields and optimization in cultivation and post‑processing drove a double‑digit increase in gross cannabis revenues, gross profit and adjusted EBITDA versus the prior year period, and said that current investments in a new Valleyfield processing center and three additional grow zones are on budget and on schedule, positioning Cannara to expand post‑processing capacity, enhance margins and support disciplined, long‑term growth.

The most recent analyst rating on (TSE:LOVE) stock is a Buy with a C$2.00 price target. To see the full list of analyst forecasts on Cannara Biotech stock, see the TSE:LOVE Stock Forecast page.

Cannara Biotech Upgrades to OTCQX and Sets Dates for Q1 Results and Shareholder Meeting

Cannara Biotech has qualified to have its common shares traded on the OTCQX Best Market in the United States under the symbol LOVFF, upgrading from the OTCQB Venture Market while maintaining its listings on the TSX Venture Exchange and Frankfurt Stock Exchange. The move is expected to improve the company’s visibility and accessibility among U.S. investors, underscoring its adherence to higher financial reporting and governance standards and supporting its broader capital markets strategy. The company will release its fiscal first-quarter 2026 financial results on January 26, 2026, followed by an earnings webcast featuring management’s remarks and a Q&A session, and it also reminded shareholders of its virtual Annual General and Special Meeting scheduled for January 29, 2026, with proxy voting encouraged in advance.

The most recent analyst rating on (TSE:LOVE) stock is a Buy with a C$2.00 price target. To see the full list of analyst forecasts on Cannara Biotech stock, see the TSE:LOVE Stock Forecast page.

Cannara Biotech Takes Top Market Share in Québec and Cleans Up Equity Compensation Plans

Cannara Biotech has rapidly emerged as a leading player in Québec’s cannabis market, achieving an estimated 29.7% share of the province’s nascent vape cartridge category and securing the number one overall cannabis retail market share position in Québec for December 2025 with a 14.7% share. Management credits the company’s vertically integrated platform and premium product lineup—particularly its live resin and first-ever rosin vape cartridges—for driving strong initial consumer demand and reinforcing Cannara’s positioning as Canada’s top premium vape producer. Separately, the company addressed an administrative oversight in its equity compensation plans by cancelling and reissuing 544,600 previously granted stock options, including those held by directors and officers, without increasing the total number of options outstanding, and is seeking shareholder approval to convert its rolling stock option and RSU plans into fixed security-based plans to enhance governance, administrative clarity and ongoing compliance with plan limits.

The most recent analyst rating on (TSE:LOVE) stock is a Buy with a C$2.00 price target. To see the full list of analyst forecasts on Cannara Biotech stock, see the TSE:LOVE Stock Forecast page.

Cannara Biotech Achieves Record Fiscal 2025 Performance and Market Expansion

Cannara Biotech Inc. reported record financial performance for Fiscal 2025, with net revenues reaching $107.3 million and achieving its first year of positive retained earnings. The company expanded its national market share to 4.1% by October 2025 and plans further growth with a new vape category launch and cultivation expansion at its Valleyfield facility. This performance underscores Cannara’s strategic focus on innovation and operational efficiency, positioning it for continued growth and value creation.

The most recent analyst rating on (TSE:LOVE) stock is a Buy with a C$2.00 price target. To see the full list of analyst forecasts on Cannara Biotech stock, see the TSE:LOVE Stock Forecast page.

Cannara Biotech to Release Financial Results and Mourns Board Member’s Passing

Cannara Biotech Inc. announced it will release its fiscal Q4 and full-year 2025 financial results on November 24, 2025. The announcement will be accompanied by an earnings webcast hosted by CEO Zohar Krivorot and CFO Nicholas Sosiak. Additionally, the company mourns the loss of Jack M. Kay, a valued board member with extensive leadership experience in the pharmaceutical and biotechnology sectors. His passing is a significant loss to the company and the broader industry.

The most recent analyst rating on (TSE:LOVE) stock is a Buy with a C$2.00 price target. To see the full list of analyst forecasts on Cannara Biotech stock, see the TSE:LOVE Stock Forecast page.