The Numbers
Greenway Greenhouse Cannabis Corporation (CSE: GWAY; OTCQB: GWAYF) reported net revenue of $2,232,700 for the three months ended June 30, 2026, a 38.0% increase from $1,621,062 in the comparable prior-year quarter. The Ontario-based licensed cultivator sold a record 2.33 million grams — or gram-equivalents — during the period, surpassing its previous quarterly record by 8.0%. Adjusted EBITDA turned positive at $47,900, and the company generated $36,778 in cash from operating activities, compared with cash consumed of $865,538 in Q1 fiscal 2026. Net loss and comprehensive loss for the quarter was $659,893.
Cash cost per gram sold fell 30.0% year-over-year to $0.69, reflecting tighter execution across cultivation, processing, and fulfillment. Gross margin before fair-value adjustments compressed to 12.0%, however, as average net sales realization came in at $0.96 per gram for the full quarter. Excluding inventory tied to retired legacy cultivars — which had been written down to net realizable value at the March 31, 2026 year-end — the average net selling price was $1.30 per gram, a materially better indicator of the go-forward portfolio's pricing power. The company ended the quarter with cash of $1,133,209 and positive working capital of $4,537,711 when amounts due to related parties are excluded.
Portfolio Reset in Progress
The margin compression is tied directly to a deliberate product-mix transition. Greenway has been retiring lower-value legacy cultivars and redirecting production toward premium genetics suited to both the domestic recreational market and international medical cannabis channels. Since launching international shipments in late 2024, the company has extended its reach to four export markets in addition to all Canadian provincial jurisdictions. Management framed the legacy inventory liquidation as a near-term pricing headwind rather than a structural issue, noting that the write-down to net realizable value was completed at fiscal year-end and the associated volume should diminish in coming quarters.
"Although the sale of legacy inventory affected pricing and margins, we remained Adjusted EBITDA positive," said Jamie D'Alimonte, Chief Executive Officer of Greenway. "We believe the steps we have taken to refine our genetics and product mix will better align our production with the markets and customers that offer the strongest long-term value." President Carl Mastronardi pointed to the volume milestone as evidence of platform capacity: "Selling 2.33 million grams in the quarter — approximately 8% above our previous quarterly record — demonstrates the throughput Greenway's team and operating platform can support."
The cultivar portfolio rebalancing is central to the company's international expansion ambitions. Greenhouse-grown cannabis — Greenway's core competency given its Kingsville, Ontario infrastructure — carries cost and scalability advantages over indoor production, a dynamic that has drawn increasing interest from international medical-cannabis importers in Europe and beyond. For operators and supply-chain partners tracking the Canadian licensed-producer landscape, Greenway's cost-reduction trajectory and volume records represent meaningful progress for a small-cap producer navigating a consolidating market. The Canadian cannabis sector has seen persistent margin pressure industry-wide, making the company's swing to positive operating cash flow a notable data point for investors monitoring cannabis earnings trends.
Capital & Share Issuance
Separately, Greenway disclosed that it issued 478,404 common shares to Abingdon Capital Corporation, an arm's-length corporate-finance consultant, at deemed prices between $0.15 and $0.18 per share. The shares, issued in partial satisfaction of monthly advisory fees under an engagement letter dated June 4, 2024, are subject to a four-month-plus-one-day hold period under CSE policies and Canadian securities laws. The issuance has no bearing on core operating metrics but adds modestly to the share count.
Written by Michael Politz, Author of Guide to Restaurant Success: The Proven Process for Starting Any Restaurant Business From Scratch to Success (ISBN: 978-1-119-66896-1), Founder of Food & Beverage Magazine, the leading online magazine and resource in the industry. Designer of the Bluetooth logo and recognized in Entrepreneur Magazine's "Top 40 Under 40" for founding American Wholesale Floral, Politz is also the Co-founder of the Proof Awards and the CPG Awards and a partner in numerous consumer brands across the food and beverage sector.
