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BIG ROCK BREWERY INC. ANNOUNCES 2026 SECOND QUARTER RESULTS

Q2 Adjusted EBITDA of $0.7 million slightly below prior year, impacted by industry trends

August 12, 2026 — Calgary, Alberta — Big Rock Brewery Inc. (TSX: BR) (“Big Rock” or the “Corporation”) today announces its financial results for the three and six months ended June 30, 2026.

Financial Summary

For the three months ended June 30, 2026, compared to the three months ended June 30, 2025, the Corporation reported:

  • total sales volumes decreased to 79,045 hl compared to 83,187 hl (5.0%);
  • net revenue was $13.9 million, down $0.1 million (1.0%); and,
  • Adjusted EBITDA decreased from $1.0 million to $0.7 million. Adjusted EBITDA is a non-GAAP financial measure, see “Non-GAAP Measures”.

 

For the six months ended June 30, 2026, compared to the six months ended June 30, 2025, the Corporation reported:

  • total sales volumes decreased to 137,184 hl compared to 147,822 hl (7.2%);
  • net revenue was $24.0 million, down $0.1 million (0.4%); and,
  • Adjusted EBITDA decreased to $0.4 million from $1.7 million.

In the second quarter of 2026 net revenues were slightly below the second quarter of 2025 at $13.9 million. Sales volumes for the quarter declined by 5.0% compared to the same period in 2025. The decrease was due to lower wholesale volumes, which is broadly consistent with industry trends, as well as a decrease in co-packing sales volumes of 2.4%.

“Big Rock’s second quarter had net revenues slightly below the prior year, reflecting broader industry trends; however, performance remained consistent, supported by the rollout of our spring and summer product launches,” noted David Kinder, Big Rock’s President and Chief Executive Officer. “As we head into the fall season, we remain focused on improving our cost structure, driving productivity efficiencies, investing in the business, advancing innovation and expanding the impact of our co-packing partnerships, while maintaining a strong foundation for future growth.”

Mr. Kinder noted further: “We also see attractive opportunities to leverage our warehouse footprint and supply chain capabilities by providing storage and logistics services to third-party customers. This initiative allows us to generate additional revenue from existing assets while further strengthening our position as a full-service partner within the beverage industry.”

As at June 30, 2026, the Corporation was not in compliance with its EBITDA targets. Management is working with ATB to obtain a waiver of the breach. However, because a waiver was not obtained prior to quarter end, under the terms of the agreement the Corporation was required to reclassify the $3.6 million long term portion of its debt as current.

 

Subsequent to quarter end, Big Rock closed a $2.0 million second lien financing (the “Second Lien Financing”) with VN Capital Fund I, LP (“VN Capital”). The Second Lien Financing will bear interest at a rate of prime plus 500 basis points and will have a maturity date of September 29, 2026. This financing will enable the Corporation to focus on capital projects and optimization opportunities while supporting ongoing operations. VN Capital is a principal shareholder and “insider” of the Corporation and James Vanasek, a director of Big Rock, is a co-founder, principal and managing partner of VN Capital Management, LLC, the manager of VN Capital.

Additional Information

The unaudited condensed interim consolidated financial statements of the Corporation and the Corporation’s Management’s Discussion and Analysis for the three and six months ended June 30, 2026 dated August 12, 2026, can be viewed on Big Rock’s website at www.bigrockbeer.com and on SEDAR+ at www.sedarplus.ca under Big Rock Brewery Inc.

NON-GAAP MEASURES

The Corporation uses certain financial measures referred to in this press release to quantify its results that are not prescribed by Generally Accepted Accounting Principles (“GAAP”). Such financial measures do not have a standardized meaning under GAAP and therefore may not be comparable to similar measures presented by other issuers. The non-GAAP financial measures should not be considered in isolation, as an alternative to or more meaningful than the most directly comparable GAAP measures which are prepared in accordance with IFRS Accounting Standards.

“Adjusted EBITDA” is a non-GAAP financial measure that the Corporation uses to measure operating performance and borrowing capacity. The most directly comparable GAAP measure to adjusted EBITDA is net income, or net loss, as applicable. The following table details the composition of adjusted EBITDA and its reconciliation to net income/(loss):

Forward-Looking Information

Certain statements contained in this press release constitute forward-looking statements or forward-looking information (collectively, “forward-looking statements”) within the meaning of applicable securities legislation. These statements relate to expectations regarding future events or Big Rock’s future performance based on certain assumptions made by Big Rock. All statements, other than statements of historical fact, may be forward-looking statements. Forward-looking statements are not facts, but only predictions based on information presently available and generally can be identified by the use of statements that include words or phrases such as, “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “intend”, “likely”, “may”, “project”, “predict”, “propose”, “potential”, “might”, “plan”, “seek”, “should”, “targeting”, “will”, and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Big Rock believes that the expectations reflected in the forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon by readers, as actual results may vary materially from such forward-looking statements. These statements speak only as of the date of this press release and are expressly qualified, in their entirety, by this cautionary statement.

 

This press release contains forward-looking statements pertaining to: the Corporation’s stated focuses heading into the fall season; Big Rock’s expectation that it will obtain a waiver or other relief from ATB in respect of its covenant breaches and continue to maintain access to its credit facility; expectations that the Second Lien Financing will enable the Corporation to focus on capital projects and optimization opportunities while supporting ongoing operations; Big Rock’s belief that there are opportunities to leverage Big Rock’s warehouse footprint and the anticipated benefits thereof; and other similar statements.

 

With respect to the forward-looking statements listed above and contained in this press release, management has made assumptions regarding, among other things:

      • the duration and impact of tariffs currently in effect and that such tariffs will remain in effect unchanged;
      • markup rates applied by the Alberta Gaming, Liquor and Cannabis Commission (“AGLC”);
      • Big Rock’s ability to obtain a waiver from ATB with respect to its non-compliance with its EBITDA target and restore compliance with the financial covenants under its credit facility with ATB;
      • that the Corporation will remain in compliance with its obligations under the Second Lien Financing and that the Second Lien Financing will provide sufficient liquidity to support the Corporation’s near-term capital projects, optimization opportunities and ongoing operations;
      • anticipated cost increases in Big Rock’s production and supply chain;
      • the expectation that the warehouse management system implementation will improve inventory control, logistics operations and operating efficiencies;
      • the expectation that leveraging the warehouse to provide storage and logistics to third-party customers will generate incremental revenue while enhancing overall asset utilization;
      • that volumes in the next fiscal year will remain constant or continue to increase;
      • that there will be no material change to the regulatory environment in which Big Rock operates;
      • that there will be no material supply issues with Big Rock’s vendors;
      • seasonal fluctuations in demand; and
      • that Big Rock can and will execute its business plans and strategies.

 

Some of the risks which could affect future results and could cause results to differ materially from those expressed in the forward-looking statements contained herein include the risk factors set out in the Corporation’s annual information form for the year ended December 30, 2025 which is available on SEDAR+ at www.sedarplus.ca and also include, but are not limited to:

      • risks related to Big Rock’s credit facility with ATB including that Big Rock may not be able to obtain a waiver from ATB with respect to its non-compliance with its EBITDA targets;
      • risks relating to the Second Lien Financing, including Big Rock’s ability to remain in compliance with its obligations thereunder and to repay amounts owing at maturity;
      • the inability to grow demand for Big Rock’s products;
      • the inability to execute its product innovation strategy and to introduce such products in the volumes necessary to fulfil its expectations;
      • changes to the duration and/or impact of tariffs currently in place, including any impacts on general market demand;
      • risks related to unanticipated changes to AGLC’s markup rates;
      • the risk that Big Rock may not have an increase in market demand or market share;
      • the risk that Big Rock may lose co-packing contract volumes or the anticipated benefits of co-packing production;
      • the risk that continued attention to streamlining production and maximizing return on sales and marketing initiatives for Big Rock’s branded and co-packing businesses will not result in the anticipated benefits;
      • the risk that Big Rock may not realize operational efficiencies or margin growth;
      • the risk that Big Rock may not have sufficient cash flows to cover forecasted expenses or return to profitability; and
      • the risk that Big Rock may not be in compliance with its financial covenants for the next 12 months.

 

Readers are cautioned that the foregoing list of assumptions and risk factors is not exhaustive. The forward-looking statements contained herein speak only as of the date of this press release and are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this press release are made as of the date hereof and Big Rock does not undertake any obligation to publicly update such forward-looking information and statements to reflect new information, subsequent events or otherwise unless so required by applicable securities laws.

 

About Big Rock Brewery Inc.

In 1985, Ed McNally founded Big Rock to contest the time’s beer trends. Three bold, European-inspired offerings – Bitter, Porter and Traditional Ale – forged an industry at a time heavy on easy drinking lagers and light on flavour. Today, our permanent ales and lagers, the Rock Creek series of craft ciders, the White Peaks family of hard tea beverages, a continually changing selection of seasonal and limited-edition beers and other licensed alcoholic beverages keep us at the forefront of the craft beer revolution and still proudly contesting the beer and alcoholic beverage trends of today. Big Rock has brewing operations in Calgary, Alberta. Big Rock trades on the TSX under the symbol “BR”. For more information on Big Rock, visit www.bigrockbeer.com.

 

For further information, please contact:

David Kinder, President & Chief Executive Officer, or Bill Woods, Chief Financial Officer:

Phone:              (403) 720-3239

Fax:                  (403) 720-3641

Email:               investors@bigrockbeer.com

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