Avicanna talks adj. EBITDA in Q3 2025 results

Executive Summary

• Avicanna Inc. reported financial results for the third quarter and nine-month period ended September 30, 2025, highlighting consecutive quarters of revenue growth in Canada and international markets.
• The company achieved record unit sales in Canada, with a 39% increase compared to the same period in 2024, driven by expanded commercial listings and new market entries.
• Strategic milestones included the issuance of a new USPTO patent for topical cannabinoid compositions and the completion of the first export of organic certified CBD-dominant flower to Switzerland.

Key Details

• Revenue: Generated $6.40 million for the three-month period and $18.88 million for the nine-month period ended Sept. 30, 2025.
• Revenue Growth: Canadian revenue increased by 4% (second consecutive quarter of growth); International revenue increased by approximately 6% compared to Q2 2025.
• Gross Profit & Margin:
  • Three-month gross profit: $3.15 million (49% margin).
  • Nine-month gross profit: $9.88 million (52% margin).
  • Margins reflect short-term reductions due to non-recurring costs, the Canada Post strike, and one-time adjustments, though the nine-month margin improved from 50% in the prior period due to sales mix changes.
• Adjusted EBITDA:
  • Three-month loss: $790,000 (decrease in loss compared to Q3 2024).
  • Nine-month loss: $610,000 (improvement from $720,000 loss in the prior nine-month period).
• Canadian Commercial Metrics:
  • Record sales of 62,987 units in Q3 2025 (39% increase vs. Q3 2024).
  • Portfolio expanded to 52 commercial SKUs and 174 commercial listings (29% growth from Q3 2024; 18% growth from Q2 2025).
  • B2B Medical unit saw a 113% increase in products sold.
  • Adult-use business unit entered three new jurisdictions: Newfoundland, Yukon, and Northwest Territories.
• Intellectual Property: USPTO issued Patent No. U.S. 12,343,315 B2 covering topical cannabinoid compositions for clear skin (treating acne, wrinkles, rosacea, and erythema).
• International Expansion:
  • Completed first export of organic certified flower for SMGH into Switzerland (20th international market for Aureus-branded products; 23rd for all Avicanna products).
  • Launched re+PLAY CBD wellness brand topicals in the US in collaboration with Harrington Wellness, utilizing patented CBD/CBG formulations derived from USDA organic certified hemp.

Notable Quotes

• "Q3 reflects the continued progress of our strategy to build a diversified and sustainable biopharmaceutical business. We are pleased with the impact of our medical affairs initiatives and the strengthened engagement within the Canadian medical community, which have contributed to consecutive quarters of revenue growth in Canada. We also continued to translate our scientific leadership into tangible value through new IP and global collaborations. Despite short-term margin pressures, we remain confident in our path toward sustainable profitability as we stay focused on disciplined execution and delivering long-term value for our shareholders," stated Aras Azadian, chief executive officer of Avicanna.