Star Metro - 1933 Industries Reports Second Quarter 2026 Financial Results

The Company owns 100%¹ of Alternative Medicine Association (AMA), the Company's cultivation and production subsidiary centred on the medical and adult-use cannabis market in the state of Nevada.

Focusing on quality and value offerings, the Company wholesales cannabis flower, pre-rolls and boutique concentrate products under its proprietary AMA brand to retail accounts across Nevada. AMA branded products consistently rank as top sellers based on volume in the state and the Company is a key supplier in the Las Vegas market.

FISCAL 2026 HIGHLIGHTS

• Revenue of $7.9 Million

• Gross Profit of $1.9 Million

• Gross Margin of 24%

• Expenses of $2.1 Million

• Net Loss of $0.2 million

• Recognized as a top 5 selling cannabis brand in Nevada²

FISCAL 2026 AND FISCAL 2025 CONSOLIDATED OPERATING FINANCIAL HIGHLIGHTS

Revenue

• Total revenues were $7.9 million for fiscal 2026 and $8.4 million for fiscal 2025. The decrease in revenues is attributed to ongoing declining flower pricing and market contraction, increased competition from illicit intoxicating hemp products and the slump in tourism, particularly in Las Vegas.

Expenses

• During the reporting period, expenses decreased to $2.1 million compared to $3.7 million in the prior year comparable period. The decrease from the prior year was primarily attributed to lower license taxes and insurance expenses.

Gross Profit

• The Company generated gross profit of $1.9 million for fiscal 2026 compared to gross profit of $2.8 million for fiscal 2025. The decrease in gross profit was attributed to lower prices due to market saturation, and aggressive retail dispensary pricing cuts implemented to compete with the resilient illegal market.

Gross Margin

• Gross margin calculated as gross profit divided by revenue was 24% in Fiscal 2026 and 34% in Fiscal 2025.

Net Loss

• Net loss for fiscal 2026 was $0.2 million and comprehensive loss was $0.5 million. Net loss was $0.89 million and comprehensive loss was $0.7 million in the prior year comparable period.

MANAGEMENT COMMENTARY

Challenging market conditions in Nevada have negatively impacted revenues and profitability; however, AMA has maintained strong brand positioning with notable performance across both the concentrates and flower categories. According to market intelligence provider Headset, AMA demonstrated a dynamic shift in competitive positioning between November 2025 and February 2026, underscoring resilient demand for its products.

In the concentrates category, AMA maintained a strong presence, ranking second in November 2025, fifth in January 2026, and second by February 2026, reflecting sustained consumer interest despite broader market pressures. In the flower category, AMA improved its standing from third in November 2025 to first place by February 2026, indicating growing consumer preference for AMA flower offerings and highlighting the brand's resilience and adaptability within a highly competitive market.

The Company is encouraged by impending federal changes related to the regulation of intoxicating hemp products, which are perceived as a primary contributor to the decline in Nevada's legal cannabis sales. The federal Continuing Appropriations and Extensions Act of 2026, signed in late 2025, is expected to redefine "hemp" effective November 2026. This change will effectively prohibit most psychoactive hemp-derived cannabinoids at the federal level, providing a pathway for Nevada regulators to further restrict and phase out these products, which is anticipated to support a more normalized and competitive legal cannabis market.

Financial statements are prepared in accordance with IFRS® Accounting Standards issued by the International Accounting Standards Board ("IASB") and the IFRIC® Interpretations of the IFRS Interpretations Committee. Detailed information regarding the Company's financial results as well as management's discussion and analysis can be found at https://sedar.com/ and https://1933industries.com/investors/financial-information

¹ As of May 30, 2025
² https://www.headset.io/brands/alternative-medicine-association-ama

About 1933 Industries Inc.

1933 Industries is a Nevada-based licensed producer, focused on the cultivation and extraction of a large portfolio of cannabis consumer products in a variety of formats under its flagship brand, Alternative Medicine Association (AMA). Its product offerings are cultivated at the Company's 68,000 sq. ft. indoor facility and marketed directly to retail dispensaries. AMA branded flower, infused pre-rolls, and in-house boutique concentrates consistently rank as the top products sold in Nevada. For more information, please visit www.1933industries.com

For further information please contact:
Alexia Helgason, VP, Investor Relations
604-728-4407
[email protected]

Brian Farrell, Chairman and CEO
[email protected]

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

Notice regarding Forward Looking Statements: This news release contains forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this news release. Actual results could differ materially from those currently anticipated due to a number of factors and risks including various risk factors discussed in the Company's disclosure documents, which can be found under the Company's profile on www.sedar.com. 1933 Industries undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE: 1933 Industries Inc.

View the original press release on ACCESS Newswire

N.Fournier--SMC