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
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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Cannara Biotech (LOVE) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$180.77M
Dividend YieldN/A
Average Volume (3M)45.69K
Price to Earnings (P/E)37.0
Beta (1Y)0.34
Revenue Growth30.64%
EPS Growth101.12%
CountryCA
Employees452
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.01
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)0.16
Revenue Forecast (FY)C$127.88M
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 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 ...
Cannara Biotech Earnings Call Summary
Earnings Call Date:Apr 28, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Apr 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
Positive
1.83
Price Trends
1.82
Positive
1.79
Positive
1.76
Positive
Market Momentum
>-0.01
Positive
51.43
Neutral
50.43
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LOVE, the sentiment is Positive. The current price of 1.83 is above the 20-day moving average (MA) of 1.82, above the 50-day MA of 1.82, and above the 200-day MA of 1.76, indicating a bullish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 51.43 is Neutral, neither overbought nor oversold. The STOCH value of 50.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$180.77M | 36.96 | 11.63% | ― | 30.64% | 101.12% | |
67 Neutral | C$182.41M | 4.61 | 27.19% | ― | 27.38% | ― | |
54 Neutral | C$265.86M | 3.90 | 4.86% | ― | 62.15% | 60.50% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | C$104.82M | 9.97 | 27.87% | ― | -18.30% | ― | |
49 Neutral | C$159.76M | -2.48 | 88.51% | ― | 3.17% | -24.07% | |
37 Underperform | C$227.80M | -0.97 | 188.90% | ― | -26.73% | -32.33% |
* Healthcare Sector Average
TSE:LOVE
Cannara Biotech
1.83
0.77
72.64%
TSE:JUSH
Jushi Holdings
0.80
0.44
122.22%
TSE:OGI
Organigram Global
1.95
0.68
53.54%
TSE:XLY
Auxly Cannabis Group
0.13
0.06
85.71%
TSE:CBST
Cannabist Company Holdings
0.56
0.00
0.00%
TSE:GRIN
Grown Rogue International
0.42
-0.06
-12.50%
Cannara Biotech Corporate Events
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 ...
Business Operations and StrategyDelistings and Listing ChangesFinancial DisclosuresShareholder Meetings
Cannara Biotech Upgrades to OTCQX and Sets Dates for Q1 Results and Shareholder Meeting
Positive
Jan 14, 2026
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 S...
Business Operations and StrategyRegulatory Filings and ComplianceShareholder Meetings
Cannara Biotech Takes Top Market Share in Québec and Cleans Up Equity Compensation Plans
Positive
Jan 2, 2026
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 s...
Business Operations and StrategyFinancial Disclosures
Cannara Biotech Achieves Record Fiscal 2025 Performance and Market Expansion
Positive
Nov 24, 2025
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 202...
Executive/Board ChangesFinancial Disclosures
Cannara Biotech to Release Financial Results and Mourns Board Member’s Passing
Neutral
Nov 17, 2025
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,...
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.