Cannara Biotech (TSE:LOVE)
TSX:LOVE
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Cannara Biotech
(TSX:LOVE)
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Rating:67Neutral
Price Target:
C$2.00
▲(9.29% Upside)
Action:DowngradedDate:01/29/26
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
Profitability / Margins
Sustained high gross and operating margins indicate durable cost control and favorable product economics versus peers. Strong margins support reinvestment in cultivation and processing, provide a cushion through industry cycles, and underpin consistent return generation for shareholders over months.
Negative Factors
Free Cash Flow Volatility
Material variability in free cash flow, including the recent decline and prior negative FCF years, constrains the firm's ability to consistently self-fund capex, inventory build or strategic initiatives. Persistent volatility increases reliance on external financing and raises execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability / Margins
Sustained high gross and operating margins indicate durable cost control and favorable product economics versus peers. Strong margins support reinvestment in cultivation and processing, provide a cushion through industry cycles, and underpin consistent return generation for shareholders over months.
Read all positive factors
Cannara Biotech (LOVE) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$175.83M
Dividend YieldN/A
Average Volume (3M)45.69K
Price to Earnings (P/E)37.0
Beta (1Y)0.31
Revenue Growth19.35%
EPS Growth-26.04%
CountryCA
Employees452
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.02
Shares Outstanding98,782,150
10 Day Avg. Volume37,006
30 Day Avg. Volume45,690
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)1.64
Price to Sales (P/S)1.57
P/FCF Ratio12.31
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$3.08Price Target Upside68.49% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.15
Revenue Forecast (FY)C$127.58M
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-derivative products in Canada. The company operates in two segment Cannabis operations and Real estate operation...
How the Company Makes Money
Cannara primarily makes money by selling finished cannabis products into Canada’s legal adult-use market. Its main revenue stream is wholesale sales of branded products (such as dried flower and cannabis extracts, including derivative formats like...
Cannara Biotech Earnings Call Summary
Earnings Call Date:Apr 28, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The earnings call reflects a strong financial performance with record-breaking metrics and significant market share growth in key regions and product categories. However, there are challenges in maintaining market share in certain regions and managing cash flow effectively.Positive Updates
Record-Breaking Financial Performance
Cannara achieved record revenue, gross profit, gross margin, operating income, and adjusted EBITDA in Q2 2025. Net revenues were CAD 26.6 million, up 6% quarter-over-quarter and 35% year-over-year. Adjusted EBITDA was CAD 7.1 million, up 18% quarter-over-quarter, representing over 100% year-over-year growth.
Negative Updates
Market Share Declines in Saskatchewan and Manitoba
Cannara experienced a market share decline in Saskatchewan due to a transition to a new wholesale partner and in Manitoba due to prioritizing high-volume markets, impacting their overall market share in these regions.
Read all updates
Q2-2025 Updates
Positive
Negative
Record-Breaking Financial Performance
Cannara achieved record revenue, gross profit, gross margin, operating income, and adjusted EBITDA in Q2 2025. Net revenues were CAD 26.6 million, up 6% quarter-over-quarter and 35% year-over-year. Adjusted EBITDA was CAD 7.1 million, up 18% quarter-over-quarter, representing over 100% year-over-year growth.
Read all positive updates
Company Guidance
During Cannara Biotech's Fiscal Year Q2 2025 earnings call, the company highlighted significant achievements and provided guidance for the future. Cannara reported record net revenues of CAD 26.6 million, marking a 6% increase quarter-over-quarter and a 35% rise year-over-year. The company also achieved a record gross profit before fair value adjustments of CAD 10.8 million, with a gross margin of 41%. Adjusted EBITDA was CAD 7.1 million, representing an 18% increase quarter-over-quarter and over 100% year-over-year growth, with an adjusted EBITDA margin of 27%. Cannara holds a 12.8% market share in Quebec, up from 9% the previous year, and is now the fastest-growing licensed producer in Canada by market share. The company plans to expand its cultivation capacity by nearly 20% to address increasing demand, especially with the upcoming vape market launch in Quebec. Cannara aims to leverage its competitive advantages in premium quality, scalability, and cost leadership to further drive growth and maintain strong financial performance.Cannara Biotech Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Aug 2025 | Aug 2024 | Nov 2023 | Aug 2022 | Nov 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 112.67M | 107.32M | 81.75M | 57.26M | 35.84M | 17.02M |
| Gross Profit | 43.48M | 47.22M | 29.79M | 27.23M | 17.33M | 10.30M |
| EBITDA | 27.05M | 28.18M | 15.16M | 15.77M | 9.54M | 3.22M |
| Net Income | 11.81M | 13.08M | 6.44M | 6.95M | 2.31M | -3.09M |
Balance Sheet | ||||||
| Total Assets | 173.84M | 168.65M | 154.72M | 141.52M | 125.62M | 92.02M |
| Cash, Cash Equivalents and Short-Term Investments | 16.52M | 14.36M | 6.62M | 4.27M | 12.11M | 8.16M |
| Total Debt | 34.85M | 41.58M | 48.33M | 45.78M | 48.39M | 20.90M |
| Total Liabilities | 62.63M | 66.43M | 66.77M | 61.78M | 58.88M | 27.91M |
| Stockholders Equity | 111.21M | 102.22M | 87.95M | 79.74M | 66.74M | 64.12M |
Cash Flow | ||||||
| Free Cash Flow | 11.01M | 13.65M | 3.21M | -4.44M | -21.55M | -33.17M |
| Operating Cash Flow | 20.77M | 20.01M | 10.68M | 5.44M | -6.08M | -2.09M |
| Investing Cash Flow | -9.39M | -5.95M | -5.19M | -9.48M | -15.35M | -30.83M |
| Financing Cash Flow | -5.96M | -6.32M | -3.14M | -3.72M | 25.46M | 33.25M |
Cannara Biotech Technical Analysis
Negative
1.83
Price Trends
1.84
Negative
1.81
Negative
1.78
Negative
Market Momentum
<0.01
Positive
44.27
Neutral
11.60
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LOVE, the sentiment is Negative. The current price of 1.83 is below the 20-day moving average (MA) of 1.84, below the 50-day MA of 1.84, and above the 200-day MA of 1.78, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 44.27 is Neutral, neither overbought nor oversold. The STOCH value of 11.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:LOVE.
Cannara Biotech Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | C$175.83M | 36.96 | 11.63% | ― | 19.35% | -26.04% | |
67 Neutral | C$196.44M | 4.61 | 27.19% | ― | 23.83% | ― | |
61 Neutral | C$123.72M | -14.67 | 11.60% | ― | -4.55% | ― | |
54 Neutral | C$269.95M | 3.90 | 4.86% | ― | 68.55% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | C$155.76M | -2.73 | 75.97% | ― | 4.15% | -42.90% | |
37 Underperform | C$227.80M | -0.97 | 188.90% | ― | -26.72% | -32.38% |
* Healthcare Sector Average
TSE:LOVE
Cannara Biotech
1.77
0.38
27.34%
TSE:JUSH
Jushi Holdings
0.69
0.11
18.97%
TSE:OGI
Organigram Global
1.92
0.30
18.52%
TSE:XLY
Auxly Cannabis Group
0.14
0.06
68.75%
TSE:CBST
Cannabist Company Holdings
0.56
0.00
0.00%
TSE:GRIN
Grown Rogue International
0.49
-0.19
-27.94%
Cannara Biotech Corporate Events
Business Operations and StrategyFinancial Disclosures
Cannara Biotech Posts Solid Q2, Becomes Top Cannabis Retailer in Québec
Positive
Apr 14, 2026
Cannara Biotech reported Q2 fiscal 2026 results showing continued profitability and strong cash generation, with total net revenues of $27.2 million, gross profit before fair value adjustments of $11.6 million, adjusted EBITDA of $6.0 million and ...
Business Operations and StrategyFinancial Disclosures
Cannara Biotech Sets Date for Q2 2026 Results as Haywood Securities Initiates Coverage
Positive
Apr 7, 2026
Cannara Biotech Inc., a Québec-based vertically integrated cannabis producer, focuses on supplying affordable premium-grade cannabis and derivative products to the Canadian market. The company operates two mega facilities totaling more than 1...
Business Operations and StrategyDelistings and Listing Changes
Cannara Biotech Wins TSX Listing and TD Cowen Coverage
Positive
Feb 26, 2026
Cannara Biotech has secured final approval to graduate from the TSX Venture Exchange to the Toronto Stock Exchange, with its common shares set to begin trading on the TSX under the symbol LOVE on March 2, 2026, and concurrent delisting from the TS...
Business Operations and StrategyDelistings and Listing Changes
Cannara Biotech to Uplist Shares to Toronto Stock Exchange
Positive
Feb 26, 2026
Cannara Biotech has secured final approval to graduate from the TSX Venture Exchange to the Toronto Stock Exchange, with its common shares set to begin trading on the TSX under the symbol LOVE on March 2, 2026, and a market-opening ceremony schedu...
Business Operations and Strategy
Cannara Biotech Schedules Investor Webcast to Highlight Cannabis Operations
Positive
Feb 12, 2026
Cannara Biotech Inc., a vertically integrated Canadian cannabis producer focused on affordable premium-grade products, operates two large-scale facilities in Québec with significant cultivation capacity. Its business model emphasizes cost-eff...
Business Operations and StrategyPrivate Placements and FinancingShareholder Meetings
Cannara Biotech Secures C$6.3 Million Premium Private Placement from Phoenician Capital
Positive
Feb 4, 2026
Cannara Biotech has completed a strategic C$6.3 million non-brokered private placement with Phoenician Capital, issuing 3 million common shares at C$2.10 per share, a roughly 16% premium to its last closing price, to fund working capital, continue...
Business Operations and StrategyDelistings and Listing Changes
Cannara Biotech Secures Conditional TSX Approval in Strategic Uplisting Move
Positive
Jan 28, 2026
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, whi...
Business Operations and StrategyFinancial Disclosures
Cannara Biotech Posts Record Q1 2026 Results and Expands Canadian Cannabis Market Share
Positive
Jan 26, 2026
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 ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.