• The Company reported a record quarterly billed revenue of $13.6M (CAD $19.4M) in Q2 2026, representing a YoY increase of 23% from Q2 2025.

  • The Company achieved positive EBITDA of $0.4M (CAD $0.6M) and Adjusted EBITDA of $0.6M (CAD $0.8M) in Q2 2026.

  • The Company completed its planned facility consolidation, anchored by its newly operational Bolingbrook facility, and now operates from two modern manufacturing facilities totaling 210,000 square feet.

  • The Company received a US$765,000 capital grant from the Illinois Department of Commerce and Economic Opportunity (DCEO) under the Business Attraction Prime Sites program, as previously announced on August 12, 2026.

DOWNERS GROVE, IL / ACCESS Newswire / August 28, 2026 / The Fresh Factory B.C. Ltd. (TSXV:FRSH)(FRA:Q4Z) (“The Fresh Factory” or the “Company“), a mission-driven company for fresh, clean-label, and better-for-you food and beverage brands, is pleased to announce financial results for the thirteen- and twenty-six week periods ending July 4, 2026 (“Q2 2026”).

“Q2 felt like the quarter where things really came together for us. We grew billed revenue 23% year over year, but the bigger story is what’s happening on the ground,” said Bill Besenhofer, CEO and co-founder of The Fresh Factory. “We completed our move to Bolingbrook and officially closed the Carol Stream facility at the end of April, a major milestone that our entire team worked hard to achieve. With production now consolidated across two modern facilities, we have the capacity and flexibility to support our customers as they grow. While we continue to work through the final costs associated with the transition, we’re seeing the benefits of the new footprint take shape and entering the second half of the year with a strong foundation for continued growth and improved efficiency.”

Financial and Operational Highlights: Q2 2026 vs. Q2 2025

  • Record billed revenue of $13.6M (CAD $19.4M) in Q2 2026 vs. $11.0M (CAD $15.8M) in Q2 2025, a 23% increase, mainly driven by sales to existing strategic partners across a variety of categories, as well as sales to new accounts.

  • Adjusted EBITDA of $0.6M (CAD $0.8M) in Q2 2026 vs. $0.8M (CAD $1.2M) in Q2 2025, primarily driven by increased facility and utility costs ahead of full revenue absorption at the new Bolingbrook facility, as well as continued carrying costs for the original facility during its wind-down.

  • The Company reported a net loss of $0.7M (CAD $1.0M) in Q2 2026, compared to net income of $0.2M (CAD $0.3M) in Q2 2025, primarily driven by increased facility and utility costs associated with the new Bolingbrook facility and dual-facility carrying costs through April 2026.

  • Adjusted gross margin was $4.1M (CAD $5.8M) in Q2 2026, compared to $4.0M (CAD $5.7M) in Q2 2025. Adjusted gross margin, as a percentage, was 30% in Q2 2026 vs. 36% in Q2 2025, reflecting changes in product mix and the expected costs of bringing the Bolingbrook facility to full capacity, which management anticipates will improve progressively through H2 2026.

Strategic Areas of Focus

The Fresh Factory is building a platform to serve emerging food and beverage brands in the fresh-food sector with an emphasis on better-for-you products. The Company has established the following three key areas of focus on which it will report on a quarterly basis moving forward.

Execution: Focus on safety, high-quality operations, and strong margins.

  • Adjusted gross margin was $4.1M (CAD $5.8M) for Q2 2026, compared to $4.0M (CAD $5.7M) for Q2 2025.

  • Adjusted gross margin, as a percentage, was 30% for Q2 2026 vs. 36% for Q2 2025, driven by a combination of product mix changes and Bolingbrook ramp-up costs.

  • Operating profit on a dollar basis was $1.1M (CAD $1.6M) for Q2 2026, compared to $1.8M (CAD $2.5M) for Q2 2025.

  • Operating profit, as a percentage, was 8.4% in Q2 2026 vs. 15.9% in Q2 2025. The margin compression reflects incremental facility and utility costs associated with the ramp-up of the new Bolingbrook facility and residual dual-facility costs through April 2026. With the Carol Stream facility now fully exited, management expects these dynamics to recede progressively through H2 2026 as production consolidates and efficiencies are realized.

  • The Company achieved EBITDA of $0.4M (CAD $0.6M) in Q2 2026.

Growth: Invest in and grow with the right brands across diversified channels.

  • Billed revenue for Q2 2026 was $13.6M (CAD $19.4M), compared to $11.0M (CAD $15.8M) in Q2 2025.

  • The Company’s Q2 2026 billed revenue grew 23% YoY, driven by increased demand from existing strategic partners across a variety of categories, as well as sales to new accounts.

  • The Company produced 14.6M packaged units in Q2 2026, a 40.3% increase from Q2 2025.

  • During Q2 2026, the Company exited its legacy Carol Stream facility, effective April 30, 2026, completing its planned facility consolidation. The Company now operates from two manufacturing facilities in Bolingbrook and Downers Grove, Illinois, totaling approximately 210,000 square feet, providing enhanced scale and flexibility to support partners as they grow.

  • The Company received a US$765,000 capital grant from the Illinois Department of Commerce and Economic Opportunity (DCEO) under the Business Attraction Prime Sites program. The non-dilutive grant supports the Company’s ongoing expansion of Illinois manufacturing operations, including the relocation of production to Bolingbrook and improvements to its Downers Grove facility, together with the associated capital investment and creation of new jobs in the state.

Sustainability: Become a market leader in sustainability.

  • The Company continued to compost 100% of its food waste and donate 100% of its produce extras.

  • As part of its new facility buildout, the Company replaced aged HVAC units with high-efficiency units, reducing energy consumption and supporting its commitment to lowering operational emissions.

Q2 2026 covers the thirteen- and twenty-six week periods ending July 4, 2026, compared to the three- and six-month periods ending June 30, 2025, for Q2 2025, following the Company’s adoption of a 4-4-5 fiscal calendar in 2026 to better align internal management reporting and operations. As a result, certain financial results for individual reporting periods may not be directly comparable to prior periods.

This earnings news release should be read in conjunction with the Company’s interim financial statements for the thirteen and twenty-six weeks ending July 4, 2026, (the “Interim Financial Statements“) and the related Management’s Discussion and Analysis (the “MD&A“); both documents are available to download on The Fresh Factory’s profile on SEDAR+ at www.sedarplus.ca.

For conversion purposes, this release used $0.70 as the conversion rate from CAD to USD.

All figures in this news release are in US dollars unless otherwise stated.

About The Fresh Factory B.C. Ltd.

The Fresh Factory is a vertically integrated company focused on accelerating the growth of the fresh, clean-label, and better-for-you food and beverage brands of tomorrow. The Fresh Factory owns or partners with emerging brands in the better-for-you space to develop, manufacture, and sell products made from fresh produce and recognizable ingredients. It operates from two manufacturing facilities near Chicago, serving customers across the United States. As a public benefit corporation, The Fresh Factory is ESG-focused, driven to make a lighter, greener impact on the environment and a stronger, positive impact on local communities and the food system as a whole. Learn more about The Fresh Factory at www.thefreshfactory.co and find The Fresh Factory on social media at Instagram, X, and LinkedIn.

Contacts

Bill Besenhofer
Chief Executive Officer and Co-Founder
1-877-495-1638
info@thefreshfactory.co

Susan Xu
Media and Investor Relations
1-877-495-1638
healthyinvestors@thefreshfactory.co

Non-IFRS Measures

There are measures included in this news release that do not have a standardized meaning under international financial reporting standards (IFRS) and therefore, may not be comparable to similarly titled measures and metrics presented by other publicly traded companies. The Company includes these measures because it believes certain investors use them as a means of assessing financial performance. Billed revenue, adjusted gross margin, operating profit, EBITDA, and adjusted EBITDA are financial measures that do not have a standardized meaning under IFRS. EBITDA is defined as earnings before interest, taxes, depreciation, and amortization. Adjusted EBITDA refers to earnings before interest, taxes, depreciation, amortization, costs of being public, share-based compensation, and one-time transaction expenses. Adjusted gross margin is defined as billed revenue minus food, packaging, and labor (i.e., COGs). Operating profit is adjusted gross margin less utilities, facilities, and maintenance costs. Billed revenue is a financial measure defined as the revenue billed to customers as opposed to total revenue, which represents billed revenue less trade and variable selling and any production credits and samples.

We prepare and release quarterly unaudited and annual audited financial statements prepared in accordance with IFRS. We also disclose and discuss certain non-GAAP (Generally Accepted Accounting Principles) financial information used to evaluate our performance in this and other earnings releases and investor conference calls as a complement to results provided in accordance with IFRS. We believe that current shareholders and potential investors in the Company use non-GAAP financial measures, such as billed revenue, adjusted gross margin, operating profit, EBITDA, and adjusted EBITDA in making investment decisions about the Company and measuring its operational results.

Management believes that investors and financial analysts measure our business on the same basis, and we are providing the billed revenue, adjusted gross margin, operating profit, EBITDA, and adjusted EBITDA as financial metrics to assist in this evaluation and to provide a higher level of transparency into how we measure our own business.

Forward-Looking Statements

This news release contains “forward-looking statements” or “forward-looking information” (collectively referred to hereafter as “forward-looking statements”) within the meaning of applicable Canadian securities legislation. All statements that address activities, events, or developments that the Company expects or anticipates will, or may, occur in the future, including statements about the Company’s new product offerings, its ability to execute on its goals, general macro and micro economic impacts of inflation on the business and operation of the Company, the timing pertaining to these goals and receipt of applicable consents and approvals, and Company’s business prospects, future trends, plans, and strategies. In some cases, forward-looking statements are preceded by, followed by, or include words such as “may”, “will,” “would”, “could”, “should”, “believes”, “estimates”, “projects”, “potential”, “expects”, “plans”, “intends”, “proposes”, “anticipates”, “targeted”, “continues”, “forecasts”, “designed”, “goal”, “anticipate” or the negative of those words or other similar or comparable words. Although the management of the Company believes that the assumptions made and the expectations represented by such statements are reasonable, there can be no assurance that a forward-looking statement herein will prove to be accurate. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, or intended. Risks and uncertainties applicable to the Company, as well as trends identified by the Company affecting its industry, can be found in the final long-form prospectus of the Company dated November 10, 2021, and the Company’s continuous disclosure record available on SEDAR+ at www.sedarplus.ca. Such cautionary statements qualify all forward-looking statements made in this news release. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law.

Neither the TSXV nor its Regulation Services provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: The Fresh Factory B.C. Ltd.

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