Nevis Brands (CSE:NEVI, OTCQB:NEVIF) reported third-quarter revenue growth of 16% from the previous quarter, driven by expanding sales in licensed markets and early success with its hemp-derived THC product line.
Revenue for the quarter ended August 31 rose to C$478,808 from C$418,745 in the prior quarter, while gross profit edged down to C$302,156 from C$315,345.
The company reported a net loss of C$22,639, compared with a loss of C$92,458 in the second quarter. Excluding non-cash depreciation expenses, Nevis posted net income of C$40,298.
“Our Q3 results demonstrate Nevis’ ability to grow the business,” said CEO John Kueber. “With 16% quarterly revenue growth and the third straight quarter of growth, we are pleased with the momentum we have built in both our licensed markets as well as our early performance with Happy Apple, our hemp-derived THC beverage.”
Gross margins declined to 63% from the previous quarter due to temporary testing costs tied to regulatory compliance and higher initial expenses for hemp-derived products. Nevis said it expects margins to improve as production scales and efficiencies increase.
The company saw growth from new market entries in New Jersey and Missouri, where its flagship brands Major and Happy Apple gained traction, while established markets in Washington, Colorado and Oregon remained stable. Nevis also expanded distribution of Happy Apple in Wisconsin, North Carolina and South Carolina.
Looking ahead, Nevis said it expects continued revenue momentum into fiscal 2026, supported by scaling its hemp-derived beverage line and maintaining disciplined cost management.