Decibel Cannabis Company (DB) investor relations material

Executive summary

• Achieved record net revenue of $35.6 million in Q2 2026, up 19% year-over-year, driven by strong international and domestic sales.

• International sales surged 72% year-over-year to $10.6 million, reflecting improved German permit timelines and expanded product offerings in the UK.

• Domestic sales grew 6% year-over-year to $25 million, supported by new product launches and strong brand performance.

• Raised full-year 2026 outlook for net revenue to $132–$137 million and adjusted EBITDA to $28–$32 million.

• Announced a 15:1 share consolidation and plans for a Normal Course Issuer Bid (NCIB) to enhance shareholder value.

Financial highlights

• Gross margin before fair value adjustments improved to 51% in Q2 2026 from 47% in Q2 2025.

• Record adjusted EBITDA of $7.8 million, up 24% year-over-year, primarily driven by international sales.

• Free cash flow reached $4.9 million, a 122% increase year-over-year.

• Adjusted net income was $4.2 million, up 23% year-over-year.

• Adjusted EPS remained at $0.01 for the quarter.

Outlook and guidance

• Full-year 2026 net revenue guidance raised to $132–$137 million from $130–$135 million.

• Adjusted EBITDA guidance increased to $28–$32 million from $27–$31 million.

• International sales expected to maintain high double-digit growth through 2026.

• Domestic sales anticipated to achieve high single-digit growth for the year.