Avant Brands Announces Results for Q2 2025

Executive Summary

• Avant Brands Inc. released its financial results for the second quarter ended May 31, 2025, reporting a sixth consecutive quarter of positive Adjusted EBITDA.
• The company achieved Gross Revenue of $9.7 million and Net Revenue of $8.5 million, both representing a 3% increase year-over-year, driven by strong international demand.
• Export Wholesale Revenue grew 11% to $4.1 million, while Domestic Wholesale Revenue surged 37% to $1.3 million, offsetting a 14% decline in Recreational Revenue due to a strategic shift toward higher-margin SKUs.

Key Details

• Gross Revenue: $9.7 million (up 3% from Q2 2024).
• Net Revenue: $8.5 million (up 3% from Q2 2024).
• Export Wholesale Revenue: $4.1 million (up 11% from Q2 2024), reflecting expansion in Germany, Israel, and Australia.
• Domestic Wholesale Revenue: $1.3 million (up 37% from Q2 2024).
• Recreational Revenue: $2.9 million (down 14% from Q2 2024), attributed to a strategic realignment toward higher-margin SKUs.
• Adjusted EBITDA: $1.2 million, marking the sixth consecutive quarter of positive Adjusted EBITDA.
• Gross Margin (adjusted for fair value adjustments): $2.2 million (down 27% from prior period) with a margin percentage of 26% (down from 37%), due to improved Cost of Sales allocations.
• Net Cash Flows from Operating Activities (YTD): $2.6 million, an increase of 7% compared to the same period in Q2 2024.
• Cannabis Production: 3,327 KG (up 4% year-over-year).
• Cannabis Sales: 2,799 KG sold (up 3% year-over-year).

Notable Quotes

• "Avant is executing at a global scale. We are establishing ourselves as the leading Canadian exporter of high-grade cannabis, trusted by top-tier distributors in markets like Germany, Israel, and Australia. Our ability to deliver consistent, premium-quality product at scale is what sets us apart. As international demand accelerates, our focus remains on building globally recognized brands and solidifying Avant's position as the standard for Canadian cannabis on the world stage." — Norton Singhavon, Founder & CEO