Star Metro - 1933 Industries Reports Third 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 $12.2 Million

• Gross Profit of $3 Million

• Gross Margin of 27%

• Expenses of $3 Million

• Net Income of $0.2 Million

• Recognized as a top 5 selling cannabis brand in Nevada²

FISCAL 2026 AND FISCAL 2025 CONSOLIDATED OPERATING FINANCIAL HIGHLIGHTS

Revenue

• The Company delivered total revenue of $12,201,267 for fiscal 2026, compared to $13,136,626 for fiscal 2025. Q3 2026 revenue was $4,291,276, compared to $4,730,261 in the prior year comparable period. On a sequential basis, revenue increased by 8.8% to $4,291,276 in Q3 2026 from $3,944,059 in Q2 2026.

Expenses

• Expenses were $3,123,489 for fiscal 2026, representing a 45.6% decrease from $5,736,539 for fiscal 2025. During Q3 2026, expenses declined to $962,303 from $2,025,619 in the prior-year period. The year-over-year reduction was primarily driven by decreases in interest and tax expenses, and reflects continued disciplined cost management, improved operational execution, and tighter inventory controls.

Gross Profit

• Gross profit was $3,277,581 for fiscal 2026 and gross profit of $5,317,736 for fiscal 2025. The Company generated gross profit of $1,342,714 in the current period compared to gross profit of $2,498,015 in the prior year comparable period. The decline in gross profit reflects sustained pricing pressure and intensified competition from intoxicating hemp products and competition from vertically integrated dispensary brands in the Nevada market.

Gross Margin

• Gross margin, calculated as gross profit divided by revenue, was 27% in fiscal 2026 versus 40% in fiscal 2025. Gross margin was 31% in Q3 2026 versus 53% in Q3 2025. The decline in gross profit reflects ongoing margin compression. While margin pressure persists, the Company continues to prioritize strategic pricing, cost reductions, and operational efficiencies to support long-term growth.

Net Income/Loss

• The Company reported net income of $154,092 for fiscal 2026, compared to a net loss of $418,803 in the prior year comparative period, representing a 136.8% improvement year-over-year. Comprehensive income totaled $86,427 for fiscal 2026, an 80.4% improvement from a comprehensive loss of $441,470 in fiscal 2025.

MANAGEMENT COMMENTARY

The Company reports strong revenues of $12.2 million for fiscal 2026, amidst a challenging market environment. According to business intelligence and market analytics aggregator Headset, the market has faced notable headwinds, with sales declining 16.9% year-over-year and units sold down 15.2%³. Despite market compression in Nevada, the Company achieved sequential growth of 8.8% compared to Q2 2026, signalling improving momentum and a resilient foothold as a top five, independent brand leader in the state.

"The Company made substantial progress on cost optimization initiatives during the year, recording a 45.6% reduction from fiscal 2025. The focus on cost reduction and operational efficiencies was also evident at the quarterly level, with Q3 expenses reduced to $0.9 million from $2.0 million in the prior-year period," said Brian Farrell, Chairman and CEO. "The reductions demonstrate management's continued focus on improving efficiency and strengthening the Company's financial foundation. Significantly, the Company returned to profitability in fiscal 2026, reporting net income of $0.2 million compared to a net loss of $0.4 million in the prior year, representing a 136.8% year-over-year improvement. Comprehensive loss also improved significantly, declining by 80.4% to income of $86,427. This reflects the effectiveness of cost reduction measures and points to a sustainable operating model."

Ester Vigil, President of 1933 Industries said, "The quarterly report demonstrates disciplined and sustainable operations with improved profitability. We are seeing a swing back to flower this quarter, and with careful planning and tighter inventory management, we are able to deliver flower to our customers with unmatched quality and pricing. The strong execution positions the Company well for enhanced financial performance".

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

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.

¹ As of May 30, 2025

² https://www.headset.io/brands/alternative-medicine-association-ama

³ https://www.headset.io/markets/nevada

SOURCE: 1933 Industries Inc.

View the original press release on ACCESS Newswire

D.Cameron--SMC