Auxly Cannabis Group (XLY) Q4 2025 earnings summary

Executive summary

• Achieved net revenue of $151.5 million for 2025, up 24% year-over-year, and $40.1 million in Q4 2025, up 16% from Q4 2024.

• Adjusted EBITDA grew 64% to $43.8 million for the year, with a margin of 29%; Q4 Adjusted EBITDA was $12.5 million, up 14% year-over-year.

• Net income for 2025 was $41.9 million, a $58.2 million improvement from 2024, with EPS of $0.03.

• Back Forty was the top cannabis brand in Canada for 2025; launched new premium brand South Point in Alberta and Ontario.

• Ended Q4 with $32.3 million in cash and total debt of $46 million.

Financial highlights

• Gross Margin on Finished Cannabis Inventory Sold improved to 54% for 2025 (from 46% in 2024); Q4 margin was 56%.

• SG&A expenses rose 22% to $43.4 million for the year, reflecting investments to support higher sales.

• Cash flow from operations before working capital changes was $38.6 million for 2025, representing 88% conversion from Adjusted EBITDA.

• Total assets at year-end were $272 million, up 4% year-over-year.

Outlook and guidance

• Focus remains on sustainable, profitable growth, innovation, and operational excellence in Canada.

• Plans to invest $10–12 million in 2026 to enhance quality and throughput at Auxly Leamington and prepare for international distribution.

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

• Sees long-term growth potential in international markets and is evaluating export opportunities.