Herbal Dispatch Reports 2026 Second Quarter Financial Results

Herbal Dispatch Inc. ("Herbal Dispatch" or the "Company"), a cannabis commerce and international distribution platform, today reported financial results for the three and six months ended June 30, 2026, highlighted by strong growth in its medical and international businesses, a 74% increase in quarterly gross profit, and an expansion in gross margin to 28.8%. The results reflect the continued transformation of Herbal Dispatch toward higher-margin medical cannabis and international export channels, with the Company increasingly focused on the veteran medical market as a key driver of recurring revenue and future profitability.

Medical sales more than doubled in Q2 2026 to $0.9 million, driven primarily by rapid growth in the Company's veteran medical channel, which has reached a current annualized sales run rate of approximately $2.2 million. Export sales increased 45% year-over-year to $0.7 million in Q2 2026, reflecting continued growth in international markets and progress in the Company's global expansion strategy. Gross profit increased 74% to $0.75 million in Q2 2026, despite lower overall revenue, demonstrating the financial impact of Herbal Dispatch's shift toward higher-margin sales channels. Gross margin expanded to 28.8% , compared with 15.7% in Q2 2025 and 20.0% for the first six months of 2025.

Entered into an exclusive strategic supply agreement with an EU-GMP licensed cannabis processor in Portugal , expanding Herbal Dispatch's capabilities and positioning the Company to pursue additional European market opportunities. Veteran medical remains a key growth engine , with the Company continuing to expand its customer base and associated recurring medical sales. The Company expects to begin generating positive quarterly adjusted EBITDA and operating cash flow on a consistent basis beginning in Q3 2026 , assuming current medical and export growth targets are achieved.

The first six months of 2026 continues to mark an important transition period for Herbal Dispatch as the Company refocuses its business strategy on higher-margin medical cannabis, particularly the veteran channel, and international exports across existing and new markets. As this transition progressed, direct-to-consumer medical net revenue increased to $0.9 million in Q2 2026, compared with $0.4 million in the prior year, representing growth of more than 100%. The increase was driven primarily by the veteran medical channel, which the Company believes represents its strongest near-term opportunity to grow revenue and improve gross margin. Year-to-date medical sales net revenue also more than doubled, increasing to $1.5 million from $0.75 million last year. Export sales also grew in Q2 2026, increasing to $0.7 million from $0.5 million in the prior year. For the six months ended June 30, 2026, export sales were $0.8 million, compared with $1.0 million in the same period last year.

Growth in medical and export sales was offset by a reduction in recreational cannabis revenue and packaging and processing services. The Company reduced third-party branded consignment sales, which have historically generated Herbal Dispatch's lowest gross margins. Overall revenue declined modestly as Herbal Dispatch deliberately reduced exposure to lower-margin recreational and third-party consignment sales. Despite lower revenue, gross profit increased to $0.75 million in Q2 2026 from $0.4 million in the prior year, representing a 74% increase. This improvement reflected stronger gross margin, which rose to 28.8% from 15.7% last year. For the six months ended June 30, 2026, gross margin also improved to 24.2% from 20.0%, driven by the sales mix shift toward higher-margin channels. The Company's net loss was $0.7 million for Q2 2026, consistent with Q2 last year. However, Q2 2026 general and administrative expenses...