Vancouver, British Columbia--(Newsfile Corp. - April 24, 2026) - Herbal Dispatch Inc. (CSE: HERB) (OTCQB: LUFFF) (FSE: HA9) ("Herbal Dispatch" or the "Company"), announces its financial results for the fourth quarter and year ended December 31, 2025.

Q4 2025 HIGHLIGHTS

Gross sales of $6.2 million, representing a 115% increase compared to $2.9 million in Q4 2024

Net revenue of $4.1 million (excluding excise taxes), up from $2.3 million in Q4 2024

Adjusted EBITDA of $0.1 million, compared to $(0.6) million in Q4 2024

Adjusted EBITDA of $0.2 million excluding non-recurring costs related to investor relations and financing

FY 2025 HIGHLIGHTS

Gross sales of $16.5 million, representing a 37% increase compared to $12.1 million in 2024

Net revenue of $12.1 million (excluding excise taxes), up from $9.9 million in 2024

Adjusted EBITDA of $(0.7) million, improved from $(1.0) million in 2024

Gross margin improved to approximately 22.7% in 2025, compared to 20.1% in 2024, reflecting enhanced cost of goods efficiency, improved product mix, and increasing scale across the Company's platform and the Company expects continued improvement into 2026 as scale and operating leverage continues to increase.

STRATEGIC MOMENTUM

Completed an oversubscribed non-brokered private placement, raising $2.1 million in October 2025

Commenced trading on the OTCQB® Venture Market under the ticker LUFFF subsequent to year end

FINANCIAL PERFORMANCE

For the three months ended December 31, 2025, gross sales increased by 115% to $6.2 million compared to $2.9 million in Q4 2024. Net revenue, excluding excise taxes, increased to $4.1 million compared to $2.3 million in the prior year quarter. The increase was driven by higher sales volumes across both medical and recreational channels and continued growth within the Company's e-commerce platform.

As of this period, the Company's path to profitability is increasingly driven by expanding gross margins, with gross profit growing to $2.75 million in 2025 from $2.0 million in 2024, reflecting improved cost of goods sold efficiency and increasing operating leverage across the platform.

Gross profit improved in Q4 2025 as a result of increased scale and improving operating efficiencies. Cost of goods sold as a percentage of sales declined year-over-year, reflecting enhanced purchasing power, optimized product mix, and improved supply chain execution. This expansion in gross margin is a key driver of the Company's path to sustained profitability and operating leverage.

Adjusted EBITDA improved significantly in Q4 2025 to positive $0.1 million, compared to negative $0.6 million in Q4 2024, driven primarily by increased scale and improved gross margins. Excluding certain non-recurring investor relations costs and professional fees related to the October 2025 private placement, adjusted EBITDA for Q4 2025 would have been positive $0.2 million.

For the full year ended December 31, 2025, adjusted EBITDA improved by 30% to negative $0.7 million compared to negative $1.0 million in 2024, reflecting continued progress toward profitability.

MANAGEMENT COMMENTARY

"The fourth quarter of 2025 marked a major step forward for Herbal Dispatch, as we delivered record quarterly gross sales and achieved positive adjusted EBITDA," said Philip Campbell, President & CEO of Herbal Dispatch. "We have now achieved double-digit growth for the third consecutive year, reflecting the strength of our platform, our customer relationships, and our ability to expand across both Canadian and international markets."

"Looking ahead to 2026, our focus remains on scaling profitably, expanding our recreational footprint, growing medical sales-particularly among veterans-and accelerating export growth into federally legal international markets. With strong sales momentum and the added visibility of our OTCQB listing, we believe we are well-positioned to create long-term value for shareholders."

CONSOLIDATED FINANCIAL STATEMENTS

The Company's consolidated financial statements and management's discussion & analysis for the year ended December 31, 2025 are available on the Company's profile on SEDAR+ at www.sedarplus.ca and will also be posted on the Company's website at www.herbaldispatch.com.

ABOUT HERBAL DISPATCH INC.

Herbal Dispatch Inc. is a leading operator of cannabis e-commerce platforms in Canada, delivering quality medical and recreational products to discerning consumers at competitive prices. Its flagship marketplace has earned trust as a premier destination for exclusive access to small-batch craft cannabis and a wide selection of curated cannabis products. The Company is also actively expanding through exports to international markets, positioning it for sustained growth and new revenue opportunities. The Company's common shares trade on the Canadian Securities Exchange under the symbol "HERB".

For further information: Philip Campbell, CEO and Director Email: IR@herbaldispatch.com Telephone: 1-833-432-2420

NON-IFRS MEASURES

Adjusted EBITDA is defined as earnings before interest, income taxes, depreciation, amortization, share based compensation, loss (gain) on disposal of assets, loss (gain) on investments, loss (gain) on extinguishment of debt, impairment losses, loss (gain) on foreign exchange and accretion expense. The Company believes that, in addition to net income (loss), adjusted EBITDA is a useful measure as it provides an indication of the financial results generated by its principal business activities prior to consideration of how these activities are financed or how the results are taxed in various jurisdictions and before certain non-cash items such as depreciation, amortization, and other items. Adjusted EBITDA does not have any standardized meaning as prescribed by IFRS and therefore, is considered a non-IFRS measure and may not be comparable to similar measures presented by other issuers.

A reconciliation of net loss to adjusted EBITDA for each of the periods presented in this news release follows:

https://api.newsfilecorp.com/redirect/vEYvOIoRm1

$HERB.CN / OTC: $LUFFF

Herbal Dispatch announced today that it is accelerating its U.S. market plans in response to the U.S. HHS recommendation to move cannabis from Schedule I to Schedule III. This potential reclassification, if finalized by the DEA, would remove the Section 280E tax burden, improve access to banking and institutional capital, and support broader industry growth.

Key points from the update:

• The company is evaluating strategic partnerships, joint ventures, and platform distribution opportunities in the U.S. with a focus on medical cannabis channels.
• Herbal Dispatch plans to leverage its experience in patient acquisition, veteran programs, and direct-to-consumer medical sales from its Canadian operations.
• Its asset-light, tech-enabled e-commerce model is designed for efficient scaling with lower capital requirements.
• Already listed on OTCQB (LUFFF) with recent DTC eligibility, which should help with U.S. investor access and liquidity.

The company has built a solid base in Canada through its craft cannabis e-commerce platform and continues to focus on growth there while preparing for U.S. opportunities. This looks like a measured approach to position for potential regulatory changes. Worth watching if you're following cannabis stocks. What are your thoughts on this one?

Anyone following $HERB / $LUFFF?

https://www.newsfilecorp.com/release/294309/Herbal-Dispatch-Advances-U.S.-Strategy-amid-Historic-Cannabis-Rescheduling-Shift

Fellow weedstock degenerates, I've been deep in the CSE: $HERB OTCQB: $LUFFF filings and press releases the last couple months and holy shit — this company is executing like a rocket ship on all cylinders. E-commerce platform + house of brands + medical insurance tailwinds + international exports. Here's the bullet-proof bull case based on fresh Q1/Q2 2026 momentum:

• Veterans' channel is straight-up exploding (high-margin, recurring revenue machine): Veteran registrations up ~400% in Q1 2026 alone vs. all of 2025. Insured gross sales for the entire year of 2025 were $675k... they basically matched that in the first FOUR MONTHS of 2026, putting them on a ~$2.23M annualized run rate already (with Q2 estimates pushing toward $3.5M–$4M). Each vet client averages ~$7k/year in insured spend at 50%+ gross margins. Just launched the upgraded HeroDispatch.com e-comm platform in early May targeting the massive $245M+ insured medical segment — concierge insurance billing, zero out-of-pocket for vets via Blue Cross/VAC. Retention >89% and they're just getting started scaling the marketing. This is sticky, government-backed revenue that prints cash.
• Exports are hitting escape velocity (first major gummy shipment already banked): April 30 they completed their first international gummy export to Australia — $350k revenue in ONE shipment. More follow-on orders expected throughout 2026. They're already shipping medical flower to Germany (298kg via EU-GMP partner in Portugal) and actively lining up new markets. This is high-margin B2B international growth on top of their domestic base, and with cannabis rescheduling momentum in the US they're positioning hard for future North American upside too. Triple export volumes by 2028? They're already delivering.
• Recreational sales through the Canadian market are about to rip (new brand just dropped): May 12 they launched Northern Drip Extracts — their FIFTH in-house brand (joining Buzz, Happy Hour, NU, and Chomp). Extracts/concentrates are one of the fastest-growing segments in Canada and this mid-to-premium line is going straight into medical + recreational + wholesale channels. BC cannabis market is on fire (Q1 sales strong + 677% YoY direct delivery growth) and Herbal Dispatch is perfectly positioned with their upgraded e-comm platforms and expanding SKUs. Their 2026 plan called for 40%+ YoY recreational growth and 15%+ BC market share — with the house-of-brands strategy and new extracts drop, they're over-delivering.

This isn't some random weed stock hoping for legalization — $HERB already has the platforms, the brands, the insurance relationships, the export lanes, and the execution. Revenue run-rate accelerating, margins expanding, multiple growth levers firing at once. Low float, OTCQB + DTC eligible, and still flying under the radar.

Positioned for a monster 2026. CSE: $HERB OTCQB: $LUFFF

just got my 4th order from HD,

Must say this oak city dank is one of the nicest smalls I gotten from buzz so far. good nose solid bud structure on sale and sticky!

cant get enough of the new chomp eddies, vapes where a steal as well.

10/10 order

Cat included in photo for attention