Revenue: As of FY2026 Q1, the actual value is USD 92.94 K.

EPS: As of FY2026 Q1, the actual value is USD -0.05.

EBIT: As of FY2026 Q1, the actual value is USD -620.79 K.

Segment Revenue

Kaival Brands Innovations Group, Inc.’s primary revenue source is KBI royalties from the PMI License Agreement for international markets, having ceased U.S. ENDS product distribution due to regulatory developments and patent litigation . For the three months ended January 31, 2026, total revenues were approximately $0.1 million, a decrease from approximately $0.2 million in the prior fiscal year’s same period, primarily due to a decrease in royalty revenue .

Operational Metrics

Net LossFor the three months ended January 31, 2026, Kaival Brands Innovations Group, Inc. reported a net loss of approximately -$0.6 million, or -$0.05 basic and diluted net loss per share . This is an improvement compared to a net loss of approximately -$4.0 million, or -$0.43 basic and diluted net loss per share, for the three months ended January 31, 2025 . The decrease in net loss is primarily attributed to a decrease in revenues and operating expenses .

Operating ExpensesTotal operating expenses for the three months ended January 31, 2026, were approximately $0.7 million, a significant decrease from approximately $4.3 million for the same period in fiscal year 2025 . This reduction is mainly due to a $2.9 million stock compensation expense in the first quarter of fiscal year 2025 . In the first quarter of fiscal year 2026, operating expenses primarily consisted of professional fees of approximately $0.3 million and other general and administrative expenses of approximately $0.4 million .

Cash Flow

Operating Cash FlowNet cash used in operating activities was approximately -$0.8 million for the three months ended January 31, 2026, compared to -$0.9 million for the same period in fiscal year 2025 . The decrease in cash used in operations was primarily due to changes in accounts receivable, accounts payable - related party, and operating lease .

Financing Cash FlowNet cash provided by financing activities was approximately $1.0 million for the three months ended January 31, 2026, contrasting with cash used in financing activities of approximately -$0.6 million for the three months ended January 31, 2025 . The cash provided resulted primarily from the issuance of common shares for cash .

Unique Metrics and Strategic Summary

Core Business Focus and Royalty RevenueKaival Brands Innovations Group, Inc.’s core business has shifted to generating royalty revenue through its international licensing agreement with Philip Morris Products S.A. (PMPSA), an affiliate of Philip Morris International Inc. (PMI) . This agreement permits PMPSA to develop and distribute ENDS products, including Bidi’s ENDS device, in international markets . Royalty payments are based on the volume of liquid sold, ranging from $0.08 to $0.16 per sale, with potential increases to $0.10 to $0.20 per sale upon meeting sales milestones .

Challenges and Asset ImpairmentThe company faces significant challenges, including the inability to import and sell the Bidi Stick in the U.S. due to a patent infringement claim and ongoing International Trade Commission (ITC) investigation . Additionally, the FDA’s marketing denial orders (MDOs) for both Classic BIDI® Stick and non-tobacco flavored BIDI® Sticks pose a potential substantial adverse impact . Kaival Brands Innovations Group, Inc. has fully impaired the intangible asset related to the GoFire intellectual property, recognizing an impairment loss of $9,895,503 for the year ended October 31, 2025 . The merger agreement with Delta Corp Holdings Limited was mutually terminated .

Future Outlook and GuidanceKaival Brands Innovations Group, Inc. believes it will not have sufficient cash to support operations for the next twelve months, raising substantial doubt about its ability to continue as a going concern . The company will need to raise additional capital to fund operations, though there is no assurance such capital will be available on reasonable terms .