Author: Atrium Research September 28, 2026
Nicholas Cortellucci, CFA | Equity Research Analyst | [email protected] | 647-391-3314
Luca Perna | Equity Research Associate | [email protected] | 647-969-1027
PLEASE REVIEW THE DISCLOSURES AT THE BOTTOM OF THE PAGE
What you need to know:
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Cannara continues to defend and grow its position amongst LPs throughout geographies and segments, highlighting management execution.
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We see several opportunities for Cannara to further penetrate the market as additional grow rooms activate and new products launch.
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LOVE is expected to report its Q4 and FY26 financials in late November, for which we expect 17% revenue growth and 11% Adj. EBITDA growth.
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The Company announced an NCIB and automatic share purchase plan, potentially contributing to future upside.
Cannara Biotech Inc. (LOVE:TSX, LOVFF:OTCQX, FRA:8CB0) has continued to build on the momentum from its Q3/26 results (read here), with retail sales data showing continued share gains outside Quebec through August. Below, we take a closer look at Hifyre data, highlighting both where Cannara has established its positioning, as well as where meaningful opportunities lie. We also provide a preview for the quarter ahead. We are maintaining our BUY rating and $3.00/share target price on LOVE.
Q4 & FY26 Financials Preview Cannara will be reporting Q4 and FY26 financial results (ending August 31ˢᵗ) towards the end of November. Our estimates can be found below, increased slightly due to the positive data. We have also introduced our quarterly estimates for FY27, refer to Figure 5 and 6.
For Q4, we are expecting:
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Revenue of $33.1M (+17% YoY, $34.4M CapitalIQ consensus)
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Gross margin of 41% (compared to 42% in Q4/25)
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Adjusted EBITDA of $8.2M (25% margin vs. 26% last year, +11% YoY, $8.7M CapitalIQ consensus)
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Net income of $4.2M or $0.04/share (vs. $3.3M or $0.02/share last year)
For FY26, we are expecting:
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Revenue of $122.2M (+14% YoY, $123.3M CapitalIQ consensus)
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Gross Margin of 43% (compared to 41% in FY25)
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Adjusted EBITDA of $31.5M (26% margin, in line with last year, +12% YoY, $31.9M CapitalIQ consensus)
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Net income of $11.8M or $0.12/share (vs. $13.1M or $0.14/share last year)
Intra-Quarter Data Review Below, we take a closer look at Cannara’s retail position via Hifyre data, showing the strides Cannara has been taking in increasing its presence outside of Quebec. Importantly, we also highlight the numerous avenues for Cannara to further penetrate the market within different product lines.
Since January, Cannara has largely been able to increase or maintain its market share throughout the provinces. Overall, Cannara grew or maintained its market share in 5 of 7 provinces. Alberta was the standout, gaining share in each of the eight months, from 2.2% in January to 3.2% in August. Ontario and BC both reached period highs in August at 3.8% and 2.3% respectively. The declines were limited to the smaller Prairie markets of Manitoba and Saskatchewan. In aggregate, Cannara’s share of sales outside Quebec rose from 2.5% in January to 2.8% in August. We view these as encouraging signals for the Q4/26 results on the horizon, highlighting strong execution from management.
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Atrium Research Ratings System
BUY: The stock is expected to generate returns of over 20% over the next 24 months.
HOLD: The stock is expected to generate returns of 0-20% over the next 24 months.
SELL: The stock is expected to generate negative returns over the next 24 months.
NOT RATED (N/R): Atrium does not provide research coverage on the respective company.
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