Auxly Cannabis Group (XLY) Q3 2025 earnings summary

Executive summary

• Net revenues for Q3 2025 reached $39.9 million, up 20% year-over-year, with nine-month revenues at $111.4 million, up 27% year-over-year.

• Net income for Q3 2025 was $20.5 million, a 533% increase year-over-year; nine-month net income was $40.9 million, reversing a loss in the prior year.

• Adjusted EBITDA for Q3 2025 was $12.3 million (31% margin), up 48% year-over-year; nine-month Adjusted EBITDA was $31.2 million, up 99%.

• Cash flow from operations before working capital changes was $11.0 million for Q3 2025, up 82% year-over-year; cash at quarter end was $30.5 million.

Financial highlights

• Gross Margin on Finished Cannabis Inventory Sold improved to 56% in Q3 2025 from 47% in Q3 2024; nine-month margin rose to 52% from 42%.

• SG&A expenses increased 38% year-over-year in Q3 2025 to $11.6 million, reflecting investments to support higher sales.

• Interest expenses decreased significantly due to debt conversion and lower principal, saving approximately $900,000 in annualized interest.

• Gross profit for Q3 2025 was $28.2 million (71% margin), up from $17.1 million (52%) in Q3 2024.

Outlook and guidance

• Focus remains on sustainable, profitable growth through innovation, operational excellence, and prudent financial management.

• Expects to fund innovation and capacity increases from free cash flow and maintain profitability through efficiency and cost control.

• Plans to allocate $2.0–$2.5 million of operating cash flow to capital projects in 2025, with excess cash for balance sheet strengthening or strategic initiatives.

• Sees long-term growth potential in international markets and aims to deepen leadership in dried flower, vapes, and pre-rolls.