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Decibel Cannabis Company (DB) investor relations material
Decibel Cannabis Company Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Net revenue for Q3 2025 reached $32.9 million, up 37% year-over-year, driven by international sales and modest Canadian recreational growth.
International sales surged to $8.4 million, a 37% sequential increase, mainly due to AgMedica's contribution.
Adjusted EBITDA rose 40% year-over-year to $7.3 million, reflecting strong operational performance.
Adjusted net income for the quarter was $3.8 million, up $1.7 million year-over-year.
Financial highlights
Net Canadian recreational sales were $24.5 million, a 3% year-over-year increase.
Gross margin before fair value adjustments was 47%, down from 53% in Q3 2024, due to lower margins on international sales.
Free cash flow was $1.5 million, a decrease of $0.3 million year-over-year, impacted by working capital changes.
Adjusted EPS was $0.01, an improvement of $0.01 year-over-year.
Outlook and guidance
2025 net revenue guidance revised to approximately $115 million and Adjusted EBITDA to $24 million, down from $130 million and $25 million, respectively.
Guidance revision reflects temporary impacts from German import permit delays and a B.C. distribution strike.
Management expects these impacts to be transitory and not disruptive to long-term earnings potential.
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