KINGSTON, Jamaica and LOS ANGELES, Aug. 13, 2026 (GLOBE NEWSWIRE) -- NUGL, Inc. (OTC: NUGL) (“NUGL” or the “Company”), operator of the KAYA cannabis and lifestyle brand in Jamaica, today reported financial results for the quarter ended June 30, 2026, demonstrating strong revenue growth, positive operating income, positive quarterly net income and sustained growth across the Kaya Group.
The Company generated $1.258 million in revenue in the second quarter of 2026, representing 45.3% growth over the $866,024 reported in the same period of 2025. Revenue also increased approximately 47.7% compared with the first quarter of 2026.
Gross profit increased to $610,462, compared with $466,585 in Q2 2025, representing a gross margin of 48.5%. Operating income reached $135,841, compared with $19,590 in the prior-year quarter.
The Company also reported net income of $32,329 in Q2 2026, compared with a net loss of $391,914 in Q2 2025. The year-over-year change in net income also reflects changes in the fair value of derivative liabilities and other non-operating items.
Growth during the quarter reflected continued strength across the Kaya brand, including cannabis retail, cultivation and processing, hospitality, food & beverage, branded experiences and strategic partnerships.
Q2 2026 Financial Highlights
- Revenue of $1.258 million, up 45.3% year over year
- Revenue increased approximately 47.7% compared with Q1 2026
- Gross profit of $610,462, representing a 48.5% gross margin
- Operating income of $135,841, compared with $19,590 in Q2 2025
- Net income of $32,329, compared with a net loss of $391,914 in Q2 2025
- Cash and cash equivalents of $145,148 as of June 30, 2026
- Six-month revenue of approximately $2.110 million, up 30.5% year over year
- Six-month operating income of $158,977, compared with $40,858 in the prior-year period
- Net cash provided by operating activities of $163,423 for the six months ended June 30, 2026, compared with $76,354 for the same period in 2025
CEO Commentary
“Our second quarter results demonstrate sustained momentum across the Kaya Group and underscore the growing strength of the KAYA brand,” said Bali Vaswani, Chief Executive Officer of NUGL, Inc.
“KAYA has evolved into more than a cannabis company. In Jamaica, we bring together cannabis, hospitality, wellness, food and beverage, music, culture and experiences under one brand, creating multiple ways to connect with Jamaican consumers and international visitors.”
“Strong tourism activity, Carnival season, 4/20 celebrations, Easter travel and cultural events contributed to an active quarter. The highly publicized visit by global content creator iShowSpeed, including a stop at Kaya Kingston and Dubwise Café, also demonstrated the organic international exposure Jamaica and KAYA can generate.”
“Most importantly, brand momentum is translating into financial performance. Revenue grew more than 45% year over year, operating income increased to $135,841, and we delivered positive net income for the quarter. Our focus remains on disciplined execution, product quality, operational efficiency and building KAYA into a Jamaican brand with relevance far beyond Jamaica.”
KAYA: Cannabis, Hospitality and Jamaican Culture
KAYA operates four medical cannabis retail locations in Jamaica: Drax Hall, Kingston, Falmouth and Ocho Rios. The Drax Hall flagship, Jamaica’s first legal medical cannabis dispensary, combines cannabis retail with Kaya Pizza, the Square Grouper Bar, events and other customer experiences.
Through Kaya Farms and Kaya Extracts, the Company also operates licensed cultivation and processing activities. Its cultivation portfolio includes more than 55 genetics, while processing operations produce kief, rosin, BHO and CO₂ oils for internal supply, third-party sales and product development.
KAYA continues to broaden its commercial and cultural footprint through strategic partnerships and collaborations, including TYSON 2.0 and Jamaican recording artist Skillibeng.
Separately, Kaya Pizza entered into an agreement with Wisynco Group supporting Coca-Cola product placement, branding, equipment and promotional activity across selected Kaya Pizza and related food & beverage locations in Jamaica. The collaboration is intended to enhance guest experience, beverage service infrastructure and branded activations within Kaya Pizza and related hospitality environments.
Management believes KAYA’s combination of tourism, hospitality, food & beverage, branded experiences and Jamaican culture strengthens its position as a differentiated lifestyle brand.
Financial Performance
For the three months ended June 30, 2026, revenue increased 45.3% to $1.258 million, compared with $866,024 for the same period in 2025.
Gross profit increased 30.8% to $610,462, compared with $466,585 in Q2 2025.
Operating income increased to $135,841, compared with $19,590 in the prior-year quarter, reflecting higher revenue and continued focus on operating performance.
Net income for the quarter was $32,329, compared with a net loss of $391,914 for the same period in 2025. Changes in derivative liability valuations and other non-operating items also affected the year-over-year comparison in net income.
For the six months ended June 30, 2026, revenue reached approximately $2.110 million, an increase of 30.5% from $1.617 million in the comparable 2025 period. Six-month operating income increased to $158,977, compared with $40,858 in the prior-year period.
Cash Flow and Liquidity
As of June 30, 2026, the Company held $145,148 in cash and cash equivalents, compared with $121,554 as of December 31, 2025 and $76,260 as of June 30, 2025.
Net cash provided by operating activities for the six months ended June 30, 2026 was $163,423, compared with $76,354 in the comparable prior-year period.
Management remains focused on liquidity management, cost containment measures, operational performance and disciplined capital allocation as the Company continues to execute its business plan.
Global Market Positioning
KAYA operates at the intersection of Jamaica’s regulated cannabis industry and the country’s globally recognized music, tourism, hospitality, wellness, food and cultural identity. Management believes this combination gives the brand opportunities beyond conventional cannabis retail and provides multiple points of engagement with local consumers and international visitors.
Management believes Jamaica’s distinctive position within global cannabis culture provides KAYA with an opportunity to translate that recognition into long-term brand value as international cannabis markets continue to mature.
Industry Developments
NUGL’s licensed cannabis operations are based in Jamaica and are not dependent on changes to U.S. federal cannabis law. Management nevertheless believes continued regulatory evolution, research, commercial acceptance and institutional interest may support the global legal cannabis industry over time.
2026 Outlook
Management remains focused on sustaining revenue growth, improving operating performance, strengthening cash generation and developing the KAYA brand across cannabis, hospitality, food & beverage, wellness and lifestyle experiences.
The Company intends to continue prioritizing operational discipline and evaluating strategic opportunities capable of strengthening its core businesses and supporting long-term shareholder value.
About NUGL, Inc.
NUGL.AI is a global discovery and analytics platform focused on cannabis brands, dispensaries, psychedelics research, digital asset tracking and AI-powered news.
Through Kaya Group, NUGL operates one of Jamaica’s most established cannabis and lifestyle brands, with licensed cannabis retail locations, cultivation and processing operations, hospitality and food & beverage concepts, wellness assets, branded experiences and strategic lifestyle partnerships.
Kaya Herb House Drax Hall opened in March 2018 as Jamaica’s first legal medical cannabis dispensary. Today, the KAYA brand operates across cannabis retail, cultivation, processing, hospitality, food & beverage, wellness, events and lifestyle partnerships in Jamaica.
For more information, visit www.kayaherbhouse.com or follow KAYA on social media at @kaya.inc.
No Offer or Solicitation
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor a solicitation of any vote or approval with respect to any transaction or otherwise. No offer of securities shall be made except in accordance with applicable law, including by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Forward-Looking Statements
This press release contains forward-looking statements. Forward-looking statements include statements regarding the Company’s future growth, operating performance, cash generation, strategic opportunities, expansion initiatives and development of the KAYA and NUGL brands.
Forward-looking statements are based on management’s current expectations and assumptions and are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied. Words such as “believe,” “expect,” “intend,” “plan,” “may,” “will,” “could,” “continue,” “opportunity,” “potential” and similar expressions are intended to identify forward-looking statements.
Investors should not place undue reliance on forward-looking statements. Additional risks and uncertainties are described in NUGL’s disclosures filed with OTC Markets. The Company undertakes no obligation to update forward-looking statements except as required by applicable law.
Investor and Media Contact
Leonardo Sammarco
Investor Relations
NUGL, Inc.
Tel: +1 (876) 627-9333
Email: ir@nugl.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/7c5fa292-3b1b-4a62-be04-5768229ca9f7.
