Decibel Cannabis Company (DB) Q2 2025 earnings summary

Executive summary

• Achieved strong sequential growth and record international volumes in Q2 2025, driven by the integration of AgMedica and expansion in global markets.

• Positioned for accelerated momentum in Canada and further international expansion in the second half of 2025.

Financial highlights

• Net revenue reached $29.8 million, up 35% year-over-year, with AgMedica contributing $5.4 million, mostly from international sales.

• Net Canadian recreational sales grew 7% year-over-year to $23.7 million, supported by new product launches and marketing initiatives.

• International sales surged to $6.1 million, a year-over-year increase of $6.1 million and a 176% sequential rise.

• Gross margin before fair value adjustments improved to 47% from 42% in Q2 2024.

• Adjusted EBITDA was $6.3 million, up 60% year-over-year, and free cash flow was $2.2 million, a $4.3 million increase year-over-year.

• Adjusted net income was $3.4 million, up $2.8 million year-over-year; adjusted EPS was $0.01, an improvement of $0.01.

Outlook and guidance

• Anticipates incremental international volumes and contracts in the second half of 2025, with strong demand in global markets.

• Expects to remain in compliance with all financial covenants for the next twelve months.

• Management believes current and prospective results will lead to a transformative year.