Greenway Defies Market with 40% Growth and Fifth Profitable Quarter

KINGSVILLE, ON – February 25, 2026 – By Carol Moore

Greenway Greenhouse Cannabis Corporation (CSE: GWAY) today announced robust third-quarter financial results that stand in sharp contrast to the persistent volatility of the Canadian cannabis market. The Kingsville-based cultivator reported a 40% year-over-year surge in net cannabis revenue, marking its fifth consecutive quarter of positive adjusted earnings and signaling that its strategy of disciplined operational efficiency is yielding significant returns.

For the quarter ending December 31, 2025, Greenway posted net cannabis revenue of $2.35 million, a substantial increase from $1.68 million in the same period of the prior year. This growth was achieved alongside expanding profitability, with the company reporting a gross margin of 29%, nearly double the 15% margin from the previous year. The performance solidifies a trend of steady improvement for the company, which has now generated positive operating income for four straight quarters.

These results arrive as the broader Canadian cannabis industry continues to navigate intense competition, pricing pressures, and a complex regulatory environment. While many larger licensed producers have struggled to achieve consistent profitability, Greenway's recent performance suggests a scalable and sustainable model may be emerging from its greenhouses.

"We are pleased to report our Q3 results which delivered revenue growth of 40% year-over-year, expanding margins, and our fifth consecutive quarter of positive adjusted EBITDA," stated Jamie D'Alimonte, CEO of Greenway, in the company’s press release. "Our objective is clear: to build a resilient, high-quality cannabis platform capable of generating consistent returns through industry cycles."

A Blueprint for Profitability

Greenway's success appears rooted in a multi-quarter effort to refine its financial and operational fundamentals. The company's adjusted EBITDA—a key measure of profitability that excludes non-cash items—reached $399,738 for the quarter, a dramatic increase of over 360% from the $85,758 reported in the prior-year period. This extends a positive EBITDA streak that began in early 2025, a year in which the company managed to generate over $1.18 million in adjusted EBITDA after reporting a loss the previous fiscal year.

The company’s performance in the preceding quarter (Q2 F2026) was even more impressive on the margin front, hitting a 40% gross margin and an adjusted EBITDA of $835,278. While Q3 saw a slight moderation from those highs, the sustained profitability and strong year-over-year growth demonstrate a consistent upward trajectory. This pattern contrasts with a market where even major players have reported revenue slips and ongoing losses, underscoring the effectiveness of Greenway's focused approach.

The company's balance sheet also reflects a position of strength. With over $1.18 million in cash and a working capital position of $5.8 million, Greenway appears well-capitalized to fund its ongoing operations and strategic initiatives without immediate financial pressures.

The Greenhouse Advantage: Driving Down Costs

A critical component of Greenway’s financial turnaround is its relentless focus on operational efficiency. The company significantly reduced its cash cost per gram sold by over 10%, bringing it down to just $0.92 from $1.03 a year ago. In the prior quarter, that cost was even lower at $0.72 per gram. This ability to cultivate cannabis at a low cost is a powerful competitive advantage in a market where wholesale flower prices have been volatile, dipping to near two-year lows in late 2025.

By keeping production costs well below its average net sales price of $1.51 per gram, Greenway has successfully widened its profit margins. This disciplined execution allows the company to remain competitive on price while securing its own profitability, a difficult balance for many in the sector.

"Our production team was able to reduce cash cost per gram over 10%," said Carl Mastronardi, President of Greenway. "We are demonstrating that disciplined execution in this market drives durable results. As we move forward, our focus remains on scaling production efficiently, optimizing yields, and enhancing product mix to ensure we continue building momentum across the platform."

This efficiency extends beyond wholesale cultivation. The company has successfully launched its own consumer brands, including MillRite and EPIC Cannabis Co. The MillRite brand, in particular, has gained significant traction, with its pre-roll products ranking highly in Ontario. This move into consumer-packaged goods allows Greenway to capture higher margins than bulk wholesale and build direct brand loyalty with consumers who are increasingly prioritizing quality and consistency.

Strategic Stockpiling for Global Ambitions

Further evidence of Greenway's forward-looking strategy lies in its inventory management. The company ended the quarter with over 3 million grams of finished goods inventory, valued at approximately $3.4 million. While large inventories can sometimes signal slowing sales, Greenway frames this as a strategic asset to support "anticipated customer demand requirements."

This anticipation is likely tied to the company's expansion into lucrative international medical cannabis markets. In July 2025, Greenway secured a supply agreement with 4C LABS to export its high-quality dried flower to the United Kingdom. This move positions the company to capitalize on a key growth engine for Canadian producers, as markets like the UK, Germany, and Australia offer significantly higher revenue per gram than the domestic market. Building a substantial inventory ensures Greenway can meet the larger orders and longer sales cycles typical of international export agreements.

As part of its long-term financial planning, the company also recently issued just over 400,000 common shares to Abingdon Capital Corporation in exchange for corporate-finance advisory services. The move, which results in a fractional dilution of less than half a percent for existing shareholders, suggests management is actively seeking strategic guidance to navigate its next phase of growth and capital allocation.

By combining its low-cost cultivation model with a dual-pronged sales strategy targeting both domestic CPG and high-value international markets, Greenway is carving out a distinct and durable path forward. The company's latest financial results indicate that its disciplined approach is not just a plan, but a proven formula for success in one of the world's most challenging industries.