Auxly Reports First Quarter 2026 Results
Profit engine keeps humming, but share price stuck in the weeds as market discounts a predictable quarter.
Auxly reported first‑quarter 2026 financial results on May 14. Net revenue grew 22% year‑over‑year to $39.8 million, and Adjusted EBITDA surged 65% to $12.3 million. Gross margin on finished cannabis inventory sold improved to 55% (from 48% a year ago), and the company ended the quarter with $42.7 million in cash. Net income was $3.5 million, and cash flow from operations before working capital changes more than doubled to $11.3 million. The company reiterated plans to spend $10‑12 million on capital projects at its Leamington facility in 2026 and confirmed a previously announced normal course issuer bid to repurchase up to 68.9 million shares.
The Q1 2026 release delivers strong numbers, but they are squarely in line with the trajectory established over the preceding quarters. Revenue is up 22% year‑over‑year, yet essentially flat from Q4 2025’s $40.1 million; Adjusted EBITDA of $12.3 million is a hair below Q4’s $12.5 million. The company had already telegraphed the $10‑12 million capex plan and its intention to build cash, and the share buyback was announced separately in April. The market had already absorbed the Ayurcann stalking‑horse bid outcome as a routine negative. Against that backdrop, this release merely confirms that the business is executing — no new catalysts, no upside surprises, and no deviation from prior guidance. The stock price, hovering unchanged around $0.14, reflects the lack of new material information. The rating is therefore Routine – Positive.
Auxly is a Canadian licensed producer ranked #3 by market share. Its flagship brand, Back Forty, is the #1 cannabis brand in Canada, with leading positions in dried flower, pre‑rolls, and all‑in‑one vapes. Production is anchored at the Auxly Leamington facility, a large‑scale cultivation and processing hub. The company also recently launched the premium “South Point” brand and entered the Quebec market successfully. Its focus is on high‑volume, value‑oriented segments, supported by tight cost control and internal manufacturing.