Mr. Tomer Bar-Meir reports

ESHBAL REPORTS RECORD Q1 2026 REVENUES, UP 43% YOY

Eshbal Functional Food Inc. has released its financial results for the three months ended March 31, 2026.

Q1 2026 highlights:

• Revenue increased 43 per cent to $5.38-million (U.S.), compared with $3.76-million (U.S.) in Q1 2025.
• Gross profit increased 41 per cent to $1.55-million (U.S.), compared with $1.1-million (U.S.) in Q1 2025, while gross margin remained relatively stable at approximately 29 per cent.
• Operating income for Q1 2026 totalled $254,000 (U.S.) and income before taxes totalled $149,000 (U.S.), as compared with operating income of $434,000 (U.S.) and income before tax of $390,000 (U.S.) in Q1 2025.
• Q1 2026 included initial partial-quarter contributions from the Gluten Free Nation and Dare to Be Different acquisitions, both of which closed in February, 2026.
• EBITDA (earnings before interest, taxes, depreciation and amortization) for Q1 2026 totalled approximately $512,000 (U.S.), as compared with $604,000 (U.S.) for Q1 2025. The company continued expanding its North American commercial activities across retail, food-service and e-commerce channels.

Q1 2026 results reflected operations prior to completion of the company's reverse takeover transaction (RTO) and prior to the expansion of the company's North American operating platform and related public-company activities.

"We are pleased with the company's strong start to 2026, highlighted by record quarterly revenues and continued expansion of our North American operations," said Tomer Bar-Meir, chief executive officer of Eshbal. "During the quarter, we completed the acquisitions of Gluten Free Nation and Dare to Be Different, continued advancing our retail, food-service and e-commerce activities in North America, and expanded local commercial production capabilities. While these initiatives increased operating expenses during the quarter, management believes these initiatives establish important infrastructure for future growth."

The company's condensed interim consolidated financial statements and management discussion and analysis for the three months ended March 31, 2026, are available under the company's profile on SEDAR+ and on the company's website.

About Eshbal Functional Food Inc.

Eshbal Functional Food is a publicly traded food-tech company focused on building a scalable platform of gluten-free and health-oriented food brands across retail, food-service and on-line channels in North America.

Since listing on the TSX Venture Exchange in 2025, Eshbal has been executing its North American growth strategy through a combination of organic expansion and strategic acquisitions. The company's operations include gluten-free, better-for-you and functional food products sold across retail, food-service and on-line channels.

During this period, the company completed the acquisition of Gluten Free Nation, acquired a majority interest in Dare to Be Different Foods, launched localized North American production in partnership with Queen Street Bakery and strengthened its commercial infrastructure in the region.

Eshbal's strategy is focused on integrating complementary better-for-you brands into a centralized operating platform designed to expand distribution, support operational efficiencies and create long-term growth opportunities.

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