Executive Summary

• Auxly reports strong 2025 performance: $146 M trailing‑12‑month revenue, $42 M Adjusted EBITDA and a positive working capital of $49 M.
• The company plans to invest $10–$12 M of cash flow in 2026 for growth‑related capital expenditures at its Leamington facility and international export capabilities.
• Significant milestones include #3 market share among Canadian licensed producers, Back Forty as the #1 brand in Canada, and successful entry into Quebec.

Key Details

• Financial Highlights (Trailing 12 months):
• Net revenue: $146 M
• Adjusted EBITDA: $42 M
• Q3‑2025 Interim Results:
• Net revenues: $39.9 M (+20% YoY)
• Gross margin on finished cannabis inventory: 56% (up from 47%)
• Adjusted EBITDA: $12.3 M (+48%), representing a 31% margin
• Cash flow from operations (pre‑working‑capital): $11.0 M (+82% YoY)
• Balance Sheet Improvements:
• Positive working capital of $49 M, including $30 M cash
• Total Debt/Adjusted EBITDA: 1.3× (0.6× net‑of‑cash) at Sep‑2025 end
• Capital Expenditure Plan 2026:
• Allocate $10–$12 M of operating cash flow to capital projects at Auxly Leamington, aimed at capacity and efficiency upgrades and enabling direct international shipments.
• Product & Brand Milestones:
• Back Forty ranked #1 cannabis brand in Canada (2025).
• Backpackers pre‑rolls entered top‑10 pre‑roll SKUs nationwide.
• New “South Point” brand launched in Ontario & Alberta with three SKUs (3.5 g, 14 g dried flower; 5 × 0.5 g pre‑rolls).
• Distribution Expansion:
• Entered Quebec Q2 2025; Back Forty became the fourth largest brand in the province within months.
• Restructuring Success:
• Amended credit facility with BMO and settled debts to Imperial Brands (July 2025).
• Eliminated going‑concern note; interest expense reduced by $1.6 M annually.
• Market Position:

• 3 Canadian licensed producer by market share.

• Leader in all‑in‑one vape category (10 of top 15 SKUs).
• Holds three of the top‑10 non‑infused pre‑roll SKUs nationwide.

Notable Quotes

• Hugo Alves, CEO: “Our focus on the largest and fastest‑growing product segments—dried flower, pre‑rolls and vapes—and disciplined financial management delivered a banner year in 2025… We plan to invest $10 M–$12 M in growth‑related capital expenditures in 2026, funded by operating cash flow.”

All forward‑looking statements are subject to risks and uncertainties detailed in the full release.