Mr. Bill Besenhofer reports

THE FRESH FACTORY REPORTS RECORD BILLED REVENUE OF $11.7M, POSITIVE EBITDA & CONTINUED OPERATIONAL EXPANSION IN Q3 2025

The Fresh Factory B.C. Ltd. has released its financial results for the third quarter ending Sept. 30, 2025 (Q3 2025). All figures in this news release are in United States dollars unless otherwise stated.

• The company reported its highest-ever quarterly billed revenue of $11.7-million ($16.7-million (Canadian)) in Q3 2025, representing a year-over-year increase of 44 per cent from Q3 2024.
• The company achieved positive EBITDA (earnings before interest, taxes, depreciation and amortization) of $400,000 ($500,000 (Canadian)) in Q3 2025 and remains profitable on a year-to-date basis.
• The company secured a three-year, $4.0-million revolving asset-based lending facility.
• The company expanded production with increased snack-bite capacity and new sachet-pouch-filling capabilities.
• The company continued to advance its expansion strategy, including signing a new lease for 154,000 square feet of manufacturing space.
• The company has renewed its normal course issuer bid (NCIB), allowing for the potential repurchase of up to 3.7 million subordinate voting shares over the next 12 months as part of its capital management strategy.

"Q3 was a pivotal quarter for us, highlighted by record revenue, positive EBITDA and meaningful progress in scaling our snacks platform," said Bill Besenhofer, chief executive officer and co-founder. "With new lines on-line, a significantly larger facility secured and enhanced liquidity from our credit facility, we're positioned to grow alongside our partners and accelerate innovation across categories."

Financial and operational highlights: YTD (year to date) 2025 versus YTD 2024

• Billed revenue of $33.4-million ($47.7-million (Canadian)) for YTD 2025 versus $23.9-million ($34.2-million (Canadian)) for YTD 2024, an increase of 40 per cent, was mainly attributed to the addition of new customers and increased sales through existing customers.
• Adjusted EBITDA of $2.5-million ($3.6-million (Canadian)) for YTD 2025 was favourable $1.4-million ($2.0-million (Canadian)) versus YTD 2024, an increase of 77 per cent.
• Adjusted gross margins of $12.5-million ($17.8-million (Canadian)) in YTD 2025, a 40-per-cent increase from $8.9-million ($12.8-million (Canadian)) in YTD 2024.
• The company reported net income of $126,003 for the first nine months of 2025, compared with a net loss of $165,031 in the same period of 2024.
• The company produced 64.4 million units for YTD 2025, a 229-per-cent increase from YTD 2024.

Financial and operational highlights: Q3 2025 versus Q3 2024

• Record billed revenue: $11.7-million ($16.7-million (Canadian)) in Q3 2025 vs. $8.1-million ($11.6-million (Canadian)) in Q3 2024, a 44-per-cent increase;
• Adjusted EBITDA: $660,000 ($900,000 (Canadian)) in Q3 2025 vs. $750,000 ($1.0-million (Canadian)) in Q3 2024;
• Net income: $(330,000) ($(480,000 (Canadian)) in Q3 2025 compared with a net income of $50,000 ($80,000 (Canadian)) in Q3 2024. The decrease in net income was driven by higher facilities and maintenance expenses associated with the ramp-up of expanded snacking capacity, increased labour needs to support higher production volumes and a one-time $200,000 loss on the disposal of equipment, which does not reflect continuing operating performance;
• Adjusted gross margins: $4.1-million ($5.9-million (Canadian)) in Q3 2025, a 31-per-cent increase from $3.1-million ($4.5-million (Canadian)) in Q3 2024.

Strategic areas of focus

The Fresh Factory is building a platform to serve emerging food and beverage brands in the fresh-food sector with an emphasis on better-for-you products. The company has established the following three key areas of focus on which it will report on a quarterly basis moving forward.

Execution: focus on safety, high-quality operations and strong margins:

• Adjusted gross margin dollars increased to $4.1-million ($5.9-million (Canadian)) for Q3 2025, compared with $3.1-million ($4.5-million (Canadian)) for Q3 2024.
• Adjusted gross margins, as a percentage, were 35 per cent for Q3 2025, versus 39 per cent for Q3 2024. This decline was driven by shifts in product mix and higher labour costs required to support increased production volumes.
• Operating profit on a dollar basis decreased by $100,165 ($143,093 (Canadian)) for Q3 2025 versus Q3 2024.
• Operating profit on a percentage basis decreased to 12 per cent in Q3 2025, compared with 19 per cent in Q3 2024, driven by higher facilities and maintenance costs tied to the expanded production capacity and the ramp-up of new manufacturing operations, which increased costs ahead of full revenue absorption.
• The company achieved positive EBITDA of $400,000 ($500,000 (Canadian)) in Q3 2025.

Growth: invest in and grow with the right brands across diversified channels:

• Billed revenue for Q3 2025 was $11.7-million ($16.7-million (Canadian)), compared with $8.1-million ($11.6-million (Canadian)) in Q3 2024.
• The company's Q3 2025 billed revenue grew 44 per cent YoY, driven by increased demand from existing strategic partners across a variety of categories.
• The company produced 29.9 million units in Q3 2025, a 227-per-cent increase from Q3 2024 and a 56-per-cent increase from Q2 2025.
• During Q3 2025, the company expanded production with increased snack-bites capacity and new sachet-pouch-filling capabilities.
• The company secured a 10-year lease for a 154,000-square-foot facility in the southwest suburbs of Chicago. This facility will support future scale, consolidate operations and allow for significant production capacity across condiments and dips, beverages and hot-fill categories.
• During the quarter, the company secured a three-year, $4.0-million revolving asset-based lending facility, providing additional financial flexibility to support working capital and operational growth.

Sustainability: become a market leader in sustainability:

• The company advanced its sustainability initiatives by installing high-efficiency HVAC (heating, ventilation and air conditioning) systems to reduce energy consumption in its newly leased facility.
• The company continued to compost 100 per cent of its food waste, reinforcing its commitment to minimizing environmental impact.

The company received approval from the TSX Venture Exchange to proceed with the renewal of its normal course issuer bid (NCIB). The NCIB will allow the company to continue to purchase outstanding subordinate voting shares of the company.

Under the NCIB, the company may acquire up to an aggregate of 993,161 shares over the 12-month period commencing on Dec. 2, 2025, and ending on Dec. 1, 2026, representing approximately 10 per cent of the company's public float as at the date hereof. Additionally, under the NCIB, the company may not acquire more than 2 per cent of the issued and outstanding shares in any 30-day period.

The company believes that, from time to time, the market price of its shares does not adequately reflect the company's underlying value and prospects. At such times, purchasing the shares represents an appropriate use of its financial resources and is expected to enhance shareholder value.

Purchases subject to the NCIB will be carried out pursuant to open market transactions through the facilities of the TSX-V and alternative trading systems or by such other means as may be permitted under applicable securities laws during the term of the NCIB at the prevailing market price of the shares at the time of purchase. All shares purchased by the company under the NCIB will be returned to treasury and cancelled. The actual number of shares that may be purchased pursuant to the NCIB and the timing of any purchases will be determined by management and the board of directors of the company. The NCIB will be conducted through Clarus Securities Inc., a member of the TSX-V, and made in accordance with the policies of the TSX-V.

The funding for any purchases pursuant to the NCIB will be from the working capital of the company. To the company's knowledge, none of the officers, or other insiders of the company, or any associates of such persons, or any associate of affiliates of the company, has any present intention to sell any shares to the company pursuant to the NCIB. The company purchased and cancelled a total of 145,000 shares in connection with its previously completed NCIB.

This earnings news release should be read in conjunction with the company's interim financial statements for the third quarter ending Sept. 30, 2025, and the related management's discussion and analysis (the MD&A); both documents are available to download on The Fresh Factory's profile on SEDAR+.

For conversion purposes, this release used 70 cents as the conversion rate from Canadian dollars to U.S. dolars.

About The Fresh Factory B.C. Ltd.

The Fresh Factory is a vertically integrated company focused on accelerating the growth of the fresh, clean-label, plant-based food and beverage brands of tomorrow. The Fresh Factory owns or partners with emerging brands in the plant-based space to develop, manufacture and sell products made from fresh produce and recognizable ingredients. It operates from its centrally located manufacturing facility near Chicago, serving customers across the United States. As a public benefits corporation, The Fresh Factory is environmental-, social- and governance-focused, driven to make a lighter, greener impact on the environment and a stronger, positive impact on local communities and the food system as a whole.

We seek Safe Harbor.