Montreal, Quebec — February 24, 2026 — Leads & Copy —
Mercanto Holdings Inc. (TSXV: MUSH) has released a forward-looking operational update ahead of the formal release of its Q2 2026 financial results.
The update is intended to provide shareholders with early insight into the anticipated Q2 2026 performance across Mercanto’s full product portfolio and the operational dynamics influencing quarter-over-quarter results.
According to the release, the Quebec vape cartridge category launched late in the second quarter of fiscal 2026, with Mercanto introducing three vape cartridge SKUs and an approved battery. The introduction of vape cartridges and its battery has been the primary driver of the company’s sales growth.
The company’s products were available approximately one month into the quarter, leaving approximately two months of vape cartridge and battery sales within the reporting period. The limited launch window coincided with the December holiday season and the initial rollout of a new provincial product category, contributing to variability in early sales patterns.
Initial sales activity was volatile and may not represent normalized demand, due to the novelty of the category, the staggered timing of the launch within the quarter, and heightened holiday demand. Early purchasing patterns across the category have reflected uneven replenishment cycles, rapid sell-through in certain locations, and temporary stock-out weeks affecting both cartridges and batteries. These dynamics were not unique to Mercanto and were observed across multiple licensed producers participating in the initial rollout.
Management is observing better than expected consistency in weekly ordering patterns and is encouraged by the current level of normalized sales as replenishment cycles have begun to stabilize.
Mercanto believes that the normalization of inventory flow and ordering cadence marks a meaningful transition point for the category, allowing for a more reliable assessment of underlying consumer demand, which management believes has now normalized at levels above those originally anticipated at launch, subject to ongoing market conditions.
The company is providing the following preliminary, unaudited financial guidance ranges for the second quarter ended January 31, 2026, together with comparisons to the same quarter in the prior fiscal year:
Revenue is estimated at $2.05M – $2.2M, representing over 110% growth compared to $1,003,116 in Q2 2025.
Net Profit is projected to be $150K – $190K, compared to a net loss of $(109,215) in Q2 2025.
EBITDA is expected to be $220K – $270K, compared to EBITDA of $(96,038) in Q2 2025.
Early sell-through across Mercanto’s vape portfolio has exceeded internal expectations and is expected to meaningfully contribute to overall Company performance for the quarter and the year.
Management views the initial performance as a strong validation of product-market fit and brand positioning within the Quebec market.
Management views the successful entry into the vape category as potentially pivotal for Mercanto, given its impact on portfolio breadth, revenue diversification, and overall growth trajectory into the future.
Mercanto Holdings Inc. is a publicly traded cannabis company focused on the development, manufacturing, and distribution of consumer cannabis products in Canada, with a particular emphasis on the Quebec market.
Source: Mercanto Holdings Inc.
