Auxly Cannabis Group (XLY) Investor presentation summary

Strategic positioning and market overview

• Holds the #3 position among licensed producers in Canada, reaching 97% of retail stores across 10 provinces and 2 territories.

• Operates leading brands, including the #1 best-selling non-infused pre-roll, all-in-one vape, and flower brands nationally.

• Maintains a global strategic partnership with Imperial Brands and leverages Canada’s regulatory environment as a launchpad for international expansion.

• Canadian recreational cannabis market projected to reach CAD $7.4B by 2030, with 12% YoY growth in 2024 and increasing social acceptance.

• Nearly 50 countries have legalized cannabis for medical and/or recreational use, supporting global growth ambitions.

Operational excellence and innovation

• Operates a 1.1 million sq. ft. automated cultivation facility in Leamington, Ontario, producing over 100,000 kgs annually.

• Advanced pre-roll automation and a 52,000 sq. ft. manufacturing facility in PEI support consistent, high-quality product output.

• Recognized for industry-leading innovation, including new product launches like Southpoint and All-in-One Boosted vapes.

• Ten consecutive quarters of positive Adjusted EBITDA reflect operational efficiency and profitability.

• Award-winning genetics library and CUMCS certification enable export and international market access.

Financial performance and growth

• 2025 net revenue reached $152M, up 24% YoY, with Adjusted EBITDA of $44M, up 64% YoY.

• Gross margin on finished cannabis inventory sold improved to 54% in 2025 from 46% in 2024.

• Cash flow from operations before working capital changes was $38.6M in 2025, up from $16.9M in 2023.

• Net income swung to $41.9M in 2025 from a loss of $16.3M in 2024.

• Maintains a strong balance sheet with $32.3M in net working capital and a total debt to Adjusted EBITDA ratio of 1.1x as of December 2025.