Avicanna Reports Q2 2025

Executive Summary

• Avicanna Inc. reported its financial results for the second quarter and first half of 2025, highlighting a return to positive adjusted EBITDA for the six-month period and improved gross margins driven by international service and licensing revenue.
• The company achieved significant operational milestones, including a 21% increase in unit sales in Canada and the issuance of a new US patent for topical cannabinoid compositions for skin conditions.
• Avicanna announced sponsorship of a pivotal Phase II clinical study for osteoarthritis pain and held a symposium on cannabinoid-based medicine, reinforcing its focus on clinical validation and market engagement.

Key Details

• Q2 2025 Financials:
  • Revenue: $6.16 million for the three months ended June 30, 2025 (1% increase YoY); $12.48 million for the six-month period (1% decrease YoY).
  • Gross Profit: $3.13 million in Q2 (51% margin) and $6.73 million for the six-month period (54% margin), up from 47% in the prior-year periods.
  • Adjusted EBITDA: Loss of $0.25 million in Q2; Gain of $0.18 million for the six-month period (improvement from a loss of $0.42 million in the same period in 2024).
• Operational Metrics (Canada):
  • SKUs and Listings: 50 commercial SKUs and 147 commercial listings (19% increase in SKUs and 9% growth in listings from Q1 2025).
  • Unit Sales: 50,789 units sold in Q2 2025, representing a 21% increase compared to the same period in 2024.
• Clinical and Regulatory Updates:
  • Clinical Study: Announced sponsorship of a multicenter, blinded, randomized placebo-controlled Phase II investigator-initiated study led by Dr. Hance Clarke at University Health Network. The study evaluates Avicanna’s proprietary oral cannabis extracts for osteoarthritis pain. It is funded by a Canadian Institutes of Health Research grant.
  • Patent Issuance: USPTO issued Patent No. US 12,343,315 B2 covering topical cannabinoid compositions for treating/preventing skin diseases (acne, wrinkles, rosacea, erythema).
• Corporate Events:
  • Held a Symposium on Cannabinoid-based Medicine in June 2025 at the MaRS Discovery District in Toronto, featuring key opinion leaders and healthcare providers.

Notable Quotes

• “Q2 marked another milestone in Avicanna’s journey, fueled by advancements in our pipeline and deeper engagement with the Canadian medical community. In Canada, we delivered growth across multiple commercial channels, underscoring the strength of our proprietary, high-margin portfolio. Achieving positive adjusted EBITDA for the first half of 2025 reflects the financial discipline and operational focus that continue to drive our performance. These results reinforce our ability to execute our strategy and position us for both domestic and international scale-up” — Aras Azadian, CEO at Avicanna.