Auxly Cannabis Group (XLY) Planet MicroCap Showcase: TORONTO 2025 summary

Company overview and market position

• Operates as a leading Canadian cannabis producer with 6.2% market share and 410 employees.

• Back Forty is the top cannabis brand by dollars sold, present in 97% of retail locations.

• Focuses on dried flower, pre-rolls, and vapes, which represent 90% of market sales.

• Achieved 60% CAGR in top-line growth since 2020.

• Generated CAD 139 million net operating revenue and CAD 28 million net income over the last 12 months.

Strategic assets and operational strengths

• Leamington facility spans 1.1 million sq ft, with 660,000 sq ft dedicated to cultivation, producing 100,000 kg annually.

• 85% of output supports own brands, with 15% sold B2B.

• Advanced pre-roll production through a five-year R&D partnership, making Back Forty the top non-infused pre-roll brand.

• Charlottetown site drives vape innovation, launching first-to-market products and capturing 23% of the all-in-one vape segment.

• Consistent focus on quality, cost efficiency, and innovation in core categories.

Financial performance and capital management

• Q2 2025 saw record net revenue of CAD 38.8 million, up 33% YoY, with gross margins at 52%.

• Achieved CAD 11.6 million adjusted EBITDA and 30% EBITDA margin in Q2.

• Generated CAD 8.3 million net income and CAD 4 million cash flow from operations in Q2.

• 56% EBITDA-to-cash flow conversion rate over the last 12 months.

• Recapitalized balance sheet, eliminating CAD 21 million debt and improving working capital to CAD 35 million.