Avant Brands Reports Audited Fiscal 2025 Results with 19% Recreational Revenue Growth

Executive Summary

• Avant Brands reported record operating cash flow of $5.7 M (up from $0.5 M in FY 2024) and a swing to positive adjusted EBITDA of $2.1 M.
• Gross profit turned positive at $4.6 M versus a $1.7 M loss the prior year; net loss narrowed 56% to $9.9 M.
• The company fully repaid its $9.5 M secured convertible debenture and reduced debt by approximately $4.5 M, strengthening the balance sheet.

Key Details

• Revenue Highlights (FY 2025 vs. FY 2024)
• Gross revenue: $41.3 M (+3%)
• Net revenue: $35.9 M (flat)
• Recreational revenue: $14.8 M (+19%)
• Domestic wholesale revenue: $5.3 M (+61%)

• Export wholesale revenue: $15.5 M (‑20%)

• Profitability

• Gross profit: $4.6 M (vs. loss of $1.7 M in FY 2024)
• Adjusted EBITDA (non‑GAAP): $2.1 M, positive in three of four quarters

• Net loss/comprehensive loss: $9.9 M (down 56% from $22.6 M)

• Cash Flow & Debt Management

• Operating cash flow: $5.7 M (up from $0.5 M)
• Debt repayment: ~​$4.5 M of debt (incl. interest) repaid in FY 2025

• Fully retired $9.5 M secured convertible debenture; no dilution incurred

• Production & Sales

• Cannabis production: 12,316 kg (‑3% YoY)
• Cannabis sold: 12,422 kg (‑8% YoY) – virtually all produced inventory sold

• Export shipments: >5,000 kg, with Germany accounting for >3,000 kg; first UK shipments in Nov 2025

• Channel Performance

• Domestic wholesale up 61% driven by supply‑chain optimization (EU‑GMP processing shift)
• Export wholesale down 20% (reflecting the same re‑classification)

• Pre‑roll market share: blk mkt™ #3 best‑selling single‑unit pre‑roll brand in Ontario

• Q4 2025 Highlights vs. Q4 2024

• Recreational revenue: $6.4 M (+114%)
• Gross profit: $1.5 M (vs. loss of $1.8 M)

• Adjusted EBITDA: –$1.1 M (vs. +$2.3 M) – impacted by cost‑of‑sales allocations

• Outlook FY 2026

• Targeting further margin expansion via LED/under‑canopy lighting upgrades and facility optimization.
• Pursuing non‑dilutive financing for Phase 1 (20,000 sq ft) construction at GreenTec Biopharmaceuticals.
• Evaluating accretive acquisitions of cultivation facilities in Canada & Europe.
• Aiming to retire the remaining secured credit facility (~$1.2 M) and continue scheduled repayments on convertible debenture B (~$2.7 M).

Notable Quotes

“Fiscal 2025 marked the moment Avant's operational discipline met its brand potential… positioning Avant as a leaner, stronger, and more profitable leader heading into 2026.” – Norton Singhavon, Founder & CEO

Materiality: Material – Positive (significant improvement in cash flow, profitability, debt reduction, and positive outlook).