Eat Well Investment Group Posts 49% Rise in Q1 2026 Adjusted EBITDA and Cuts Net Loss by 60%, Moves Toward CSE Trading Resumption

Adjusted EBITDA Growth Highlights Operational Progress

Eat Well reported a 49% increase in Adjusted EBITDA to $790,313 in Q1 2026, up from $529,968 in the same period last year. This non-IFRS metric excludes non-cash, non-recurring items, including a $461,965 bad debt write-off linked to litigation in Q1 2026. The company uses Adjusted EBITDA to provide investors and analysts with insight into its core operational performance, cautioning it should not replace IFRS measures.

The reconciliation shows Adjusted EBITDA derived from the net loss of $1,306,230 by adding back interest expense of $721,024, depreciation and amortization of $1,001,756, and financing and transaction costs of $8,345, while subtracting a $3,142 gain on disposal of fixed assets. Eat Well describes this as evidence of enhanced operational discipline and efficiency in managing its pulse processing facilities in Saskatchewan and Montana.

Gross Margin Expansion Amid Revenue Decline

Despite a 17.5% revenue decrease to $11,517,506 from $13,962,426 year-over-year, gross profit rose modestly to $1,811,614 from $1,600,782, with gross margin improving by 420 basis points to 15.7% from 11.5%. This margin growth suggests improved cost management or a shift toward higher-margin product offerings.

The report does not specify which product lines or markets drove margin gains or clarify if revenue decreases stemmed from lower sales volumes, pricing changes, or product mix shifts. Eat Well operates pulse processing plants serving North American and international food ingredient and consumer markets, though segment-level details for Q1 2026 were not disclosed.

Net Loss Reduced Significantly with Lower Financial Costs

Eat Well’s net loss narrowed by 60% to $1,306,230 in Q1 2026 from $3,283,694 in Q1 2025, equating to a per-share loss reduction from $0.02 to $0.01. This improvement largely reflects a dramatic fall in financing and transaction costs to $8,345 from $2,746,662, a 99.7% decrease.

While the announcement does not detail prior year financing costs, CEO Daniel Brody emphasized refinancing higher-interest debt as a key priority. Interest expense remained significant at $721,024 in Q1 2026, slightly down from $750,955 in Q1 2025, indicating substantial debt levels persist. Cash and equivalents surged to $5,989,647 at quarter-end, up from $2,030,653 a year earlier, demonstrating enhanced liquidity.

Strengthened Cash Position and Balance Sheet

Cash and equivalents nearly tripled year-over-year to $5,989,647 as of March 31, 2026, compared to $2,030,653 on March 31, 2025. This liquidity improvement reflects reduced operating losses and more efficient capital management. The cash buffer supports the company’s goals of refinancing higher-cost debt and investing in its most profitable business segments.

No detailed information on debt levels, maturities, or credit facility covenants was provided. However, CEO Brody’s remarks indicate debt refinancing remains a near-term focus to address less favorable terms or higher interest rates.

Advancing Toward Resumption of CSE Trading

Eat Well highlighted regulatory progress by filing audited annual financial statements for 2023, 2024, and 2025, plus required quarterly interim reports. With its continuous disclosure filings current, the company has "advanced its application toward a full revocation of the cease trade order and a resumption of trading on the CSE."

The company cautioned that revocation is not guaranteed, as regulators must confirm compliance with disclosure obligations. No timeline for regulatory decisions was disclosed.

CEO Daniel Brody Highlights Operational Discipline and Strategic Priorities

CEO Daniel Brody described Q1 2026 as a demonstration of operational discipline and strategic focus, citing the 49% Adjusted EBITDA increase, gross margin expansion from 11.5% to 15.7%, and 60% net loss reduction as key indicators of progress. He stated the company is "in the clearest position we have been in years," with three near-term priorities: reinstating trading on the CSE, refinancing higher-interest debt, and growing high-margin business segments.

Brody acknowledged shareholder patience amid regulatory and operational challenges and expressed confidence in the company’s trajectory and likelihood of regulatory approval, while noting forward-looking statements are subject to risks.

Company Overview and Market Focus

Eat Well Investment Group is a publicly traded Canadian agricultural and food infrastructure company operating pulse processing facilities in Saskatchewan and Montana. These plants serve food ingredient and consumer markets across North America and internationally. The company’s common shares trade on the Canadian Securities Exchange under "EWG," on US markets as "EWGFF," and on the Frankfurt Stock Exchange under "6BC0."

The announcement did not disclose operational metrics such as facility utilization, production volumes, customer concentration, pricing, or market share for Q1 2026. Investors seeking detailed operational insights should consult the company’s financial statements and management discussion available on www.sedarplus.ca.

Transparency Through Non-IFRS Adjusted EBITDA Reconciliation

Eat Well provided a detailed reconciliation of Adjusted EBITDA from IFRS net loss, including adjustments for income tax benefits, interest expense, depreciation and amortization, litigation-related bad debt write-offs, financing and transaction costs, realized investment gains, and gains on disposal of fixed assets. The company notes Adjusted EBITDA is a non-standardized measure and may not be comparable to similar metrics from other issuers.

Management presents Adjusted EBITDA to offer a clearer view of core operating performance by excluding non-cash, non-recurring, or non-operational items. For instance, the 2025 calculation subtracts a $621,482 realized investment gain related to Amara, reflecting changes in the company’s investment portfolio between periods.

Forward-Looking Statements and Risk Disclosures

The announcement includes a comprehensive forward-looking statements disclaimer covering debt refinancing, cease trade order revocation, trading resumption, and future developments. It notes that forward-looking information is based on assumptions that may prove inaccurate and is subject to various business, financial, credit, and market risks that could cause actual outcomes to differ materially.

Investors are encouraged to review the company’s continuous disclosure filings on www.sedarplus.ca for detailed risk information. The company disclaims any obligation to update forward-looking statements except as legally required, underscoring inherent uncertainties in projections and timelines.