Q2 2026 MustGrow Biologics Corp Earnings Call Transcript
Key Points
- MustGrow Biologics Corp (MGROF) reported a net profit of about $300,000 in Q2 2026, a significant improvement from a loss of $1.1 million in Q2 2025.
- The company received its first milestone payment from Bayer, validating the efficacy of its technology and strengthening its partnership.
- Year-to-date TerraSante sales as of August 15, 2026, reached approximately $900,000, up 46% compared to all of 2025, indicating strong demand growth.
- The company holds a strong cash position of $4.4 million and working capital of $5.2 million, providing financial stability for operations.
- Management expects gross margins to improve to 25-40% as they transition from costly air freight to ocean freight, enhancing profitability.
- The Bayer partnership is projected to involve $35-40 million in investment for registration, with potential for significant royalties and cost-plus revenue in the future.
- Production capacity is expected to reach CAD15-25 million at nameplate, with plans to supplement production in Canada and the US to meet growing demand.
- TerraSante sales revenue was only $75,000 in Q2 2026, with a negative gross margin of $17,000 due to high air freight costs.
- The company continues to experience manufacturing hiccups at new plants in Asia, leading to periods of being sold out and inability to fully meet customer demand.
- Regulatory progress for TerraMG in the US and Canada is slow, with a 'wait-and-see' period and no clear timeline for EPA approval.
- The company's share price has declined over the past year, reflecting investor concerns despite operational progress.
- The company is still not generating positive cash flow, with a goal of achieving this only by 2027, and faces ongoing expenses of about $900,000 per quarter.
- There is uncertainty regarding the timing of the next Bayer milestone, which is not expected until 2027 at the earliest.
- The company's product is not yet available in Europe, with testing in flowers in the Netherlands still ongoing and no clear market entry date.
Welcome to MustGrow Biologics Q2 2026 earnings call with CEO, Corey Giasson; and COO, Colin Bletsky. The financial statements and management discussion and analysis are available on SEDAR+. Today's remarks may contain forward-looking statements. These statements involve known and unknown risks and uncertainties. Please refer to MustGrow's filings on SEDAR+ for more information.
After management's remarks, we will open the call for questions. (Operator Instructions) Welcome, gentlemen, and please begin your presentation.
Thank you, Martin. Good afternoon, everyone, and welcome to MustGrow's Q2 2026 earnings call and question-and-answer session. Before I begin, I'd like to draw your attention to our disclaimer. Forward-looking statements are going to be made in this presentation and the Q&A session at the end. Again, some of these statements will not come to fruition.
This disclaimer can be read on our website at mustgrow.ca. So last week, we announced the Q2 2026
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