Auxly Cannabis Group (XLY) investor relations material

Business overview and market position

• Specializes in cultivation and manufacturing of cannabis products, holding a 6.9% Canadian market share and ranking third by market share, with continued growth in 2025 and 2026.

• Flagship brand Back Forty is the top cannabis brand in Canada by dollars sold, available in 97% of retail locations, focusing on dried flower, pre-rolls, and vapes.

• Strategic partnership with Imperial Brands, which owns 20% of shares, supports international expansion as global markets open.

• Achieved adjusted EBITDA profitability for 11 consecutive quarters and net income profitability for eight quarters.

Financial performance and growth

• Generated CAD 159 million net revenue, CAD 49 million EBITDA, and CAD 44 million cash flow from operations over the last 12 months.

• Maintains 50% gross margin and over 30% EBITDA margin, converting over 90% of EBITDA to cash flow.

• Q1 2026 net revenue reached CAD 39.8 million, up 22% year-over-year, with a 55% gross margin and 31% EBITDA margin.

• Q1 2026 adjusted EBITDA was CAD 12.3 million, up 65% year-over-year, and cash flow was CAD 11.3 million, up 101%.

• Capital allocation focuses on organic growth, select acquisitions, and share repurchases under a normal course issuer bid.

Operational strengths and innovation

• Operates Auxly Leamington, a 1.1 million sq ft cultivation facility producing 100,000 kg of dried flower annually, with plans to increase to 150,000 kg.

• Facility achieves top-three industry cost profile without sacrificing quality; three of the top 10 selling strains are grown there.

• Innovation in dried flower led to the launch of South Point, a premium brand already a top 20 strain in Ontario.

• R&D collaboration with a leading tobacco equipment manufacturer enabled advanced pre-roll production; Back Forty dominates pre-rolls and vapes.

• SKU efficiency and hardware innovation in vapes, such as the boosted product, drive high-margin growth and incremental sales.