Decibel Cannabis Company (DB) Q3 2025 earnings summary

Executive summary

• Net revenue for Q3 2025 reached $32.9 million, up 37% year-over-year, driven by international sales and modest Canadian recreational growth.

• International sales surged to $8.4 million, a 37% sequential increase, mainly due to AgMedica's contribution.

• Adjusted EBITDA rose 40% year-over-year to $7.3 million, reflecting strong operational performance.

• Adjusted net income for the quarter was $3.8 million, up $1.7 million year-over-year.

Financial highlights

• Net Canadian recreational sales were $24.5 million, a 3% year-over-year increase.

• Gross margin before fair value adjustments was 47%, down from 53% in Q3 2024, due to lower margins on international sales.

• Free cash flow was $1.5 million, a decrease of $0.3 million year-over-year, impacted by working capital changes.

• Adjusted EPS was $0.01, an improvement of $0.01 year-over-year.

Outlook and guidance

• 2025 net revenue guidance revised to approximately $115 million and Adjusted EBITDA to $24 million, down from $130 million and $25 million, respectively.

• Guidance revision reflects temporary impacts from German import permit delays and a B.C. distribution strike.

• Management expects these impacts to be transitory and not disruptive to long-term earnings potential.