Decibel Delivers Strong Revenue Growth and Profitability in Second Quarter
CALGARY, AB, Aug. 21, 2025 /PRNewswire/ - Decibel Cannabis Company Inc. (the "Company" or "Decibel") (TSXV:DB) (OTCQB:DBCCF), a market leader in premium cannabis and extract manufactured products, is pleased to announce its unaudited interim financial results for the three and six month periods ending June 30, 2025.
"Decibel delivered a strong second quarter with exceptional sequential growth, record international volumes, and continued strength across all profitability metrics. Q2 marked a pivotal period for the Company, highlighted by the successful integration of AgMedica, which has firmly established our international platform. As we move into the second half of 2025, we are well positioned to accelerate our momentum in Canada and expand our presence in high-growth global markets."
Benjamin Sze, Chief Executive Officer
Second Quarter Highlights
Net Revenue was $29.8 million, a year over year increase of 35%. Net revenue growth in the quarter was primarily a result of contributions from AgMedica Bioscience Inc. ("AgMedica") which accelerated international sales, coupled with modest net Canadian recreational sales growth. Total sales contributed from AgMedica were $5.4 million, of which $4.7 million were international sales and the remainder net Canadian recreational sales.
Net Canadian Recreational Sales were $23.7 million, a year over year increase of 7%. The increase in net Canadian recreational sales was driven by successful initiatives including: new marketing campaigns, reinvesting in growing the Qwest brand presence, launching ultra high potency vapes and infused pre-rolls, new large format all-in-one disposable, and milled flower.
International Sales were $6.1 million, a year over year increase of $6.1 million, and a quarter over quarter increase of 176%. The increase in international sales was primarily driven by the contributions from AgMedica. Total international sales contributed from AgMedica were $4.7 million. The Company has executed additional contracts related to cannabis exports to international markets and delivered modest volumes related to such contracts in the second quarter. With the majority coming in future periods. The Company sees strong demand internationally and anticipates incremental volumes and contracts in the second half of 2025.
Gross Margin Before Fair Value Adjustments was 47% in the second quarter of 2025, compared to 42% in the second quarter of 2024.
Adjusted EBITDA(1) of $6.3 million, a year over year increase of 60%. The increase in Adjusted EBITDA for the quarter was primarily driven by international sales and net Canadian recreational sales growth.
Free Cash Flow(1) of $2.2 million, a year over year increase of $4.3 million. The increase in Free Cash Flow is primarily attributable to strong growth in net revenue, partially offset by changes in non-cash working capital as the Company positions itself for anticipated growth.
Adjusted Net Income(1) of $3.4 million, a year over year increase of $2.8 million. Adjusted Earnings per Share were $0.01, an improvement of $0.01 year over year.
Notes:
1 Non-GAAP financial measure. Refer to "Cautionary Statement Regarding Certain Non-GAAP Measures" for further details.
Summary Highlights
Three months ended
Six months ended
June 30
June 30
2025
2024
2025
2024
(thousands of Canadian dollars, except where noted)
Gross Canadian recreational sales1
$38,228
$33,644
$67,618
$65,946
Net Canadian recreational sales1
$23,697
$22,125
$42,708
$42,723
International sales1
$6,148
$37
$8,375
$393
Total
Gross revenue
$44,376
$33,681
$75,993
$66,339
Net revenue
$29,845
$22,162
$51,083
$43,116
Gross profit before fair value adjustments
$14,032
$9,288
$24,621
$19,315
Gross margin before fair value adjustments
47 %
42 %
48 %
45 %
Adjusted EBITDA3
$6,306
$3,939
$9,762
$7,528
Net (loss) income and comprehensive (loss) income
$1,646
$122
($255)
($3,212)
Adjusted net income (loss)3
$3,449
$607
$3,300
($2,872)
Cash flow from operations
$2,683
$985
$1,972
$1,860
Free cash flow2, 3
$2,193
($2,100)
$964
($2,651)
Adjusted free cash flow2, 3
$4,521
$375
$5,456
$1,681
Per Share Metrics
Income (loss) per share
$0.00
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