Decibel Delivers Strong Revenue Growth and Profitability in Second Quarter

Executive Summary

• Decibel Cannabis Company Inc. reported unaudited interim financial results for the three and six months ended June 30, 2025, highlighting strong revenue growth and improved profitability driven by the integration of AgMedica and international expansion.
• Second Quarter Net Revenue reached $29.8 million, a 35% year-over-year increase, with Adjusted EBITDA rising 60% to $6.3 million and Adjusted Net Income increasing to $3.4 million.
• The company successfully integrated AgMedica Bioscience Inc., which contributed significantly to international sales growth, while maintaining steady growth in its core Canadian recreational market.

Key Details

• Net Revenue: $29.8 million for Q2 2025, up 35% year-over-year.
• Net Canadian Recreational Sales: $23.7 million in Q2 2025, up 7% year-over-year.
• International Sales: $6.1 million in Q2 2025, up $6.1 million year-over-year and 176% quarter-over-quarter.
• AgMedica Contribution: Total sales from AgMedica were $5.4 million in Q2, including $4.7 million in international sales.
• Gross Margin: Gross margin before fair value adjustments was 47% in Q2 2025, compared to 42% in Q2 2024.
• Adjusted EBITDA: $6.3 million in Q2 2025, a 60% increase year-over-year.
• Free Cash Flow: $2.2 million in Q2 2025, an increase of $4.3 million year-over-year.
• Adjusted Net Income: $3.4 million in Q2 2025, up $2.8 million year-over-year.
• Adjusted EPS: $0.01 in Q2 2025, an improvement of $0.01 year-over-year.
• Six-Month Performance (Ended June 30, 2025):
  • Net Revenue: $51.1 million.
  • Adjusted EBITDA: $9.8 million.
  • Adjusted Net Income: $3.3 million.
  • Free Cash Flow: $0.96 million.
• Financial Compliance: As of June 30, 2025, the Company was in compliance with all financial covenants.
• Operational Updates: The company launched new product initiatives including ultra-high potency vapes, infused pre-rolls, large-format all-in-one disposables, and milled flower.

Notable Quotes

• "Decibel delivered a strong second quarter with exceptional sequential growth, record international volumes, and continued strength across all profitability metrics. Q2 marked a pivotal period for the Company, highlighted by the successful integration of AgMedica, which has firmly established our international platform. As we move into the second half of 2025, we are well positioned to accelerate our momentum in Canada and expand our presence in high-growth global markets." — Benjamin Sze, Chief Executive Officer