Decibel Cannabis Company (DB) Q4 2025 earnings summary

Executive summary

• Achieved 22% year-over-year revenue growth to CAD 113 million for 2025, with international sales up nearly 5x to CAD 24 million and record cash flow generation, entering 2026 with a stronger balance sheet and product momentum.

• Integration of AgMedica drove international expansion, with Q4 international revenue more than doubling year-over-year and full-year international sales reaching CAD 24 million.

• Adjusted EBITDA rose 29% to CAD 23 million, and free cash flow nearly tripled to CAD 5.5 million.

• Successfully integrated AgMedica acquisition, delivering CAD 7 million in Adjusted EBITDA, exceeding targets.

• Refinanced debt with a new CAD 61 million facility, extending maturities to 2030 and reducing 2026 obligations.

Financial highlights

• Q4 net revenue was CAD 29 million, up 13% year-over-year; full-year revenue reached CAD 113 million, up 22%.

• Adjusted EBITDA for the year was CAD 23 million, up 29%, and Q4 adjusted EBITDA was CAD 6.2 million, up 19%.

• Free cash flow for the year was CAD 5.5 million, up 292%; Q4 free cash flow was CAD 3 million, up 34%.

• Gross margin in Q4 was 49%, stable year-over-year; full-year gross margin was 48%.

• Adjusted net income for Q4 was CAD 2.6 million, up 157% year-over-year; adjusted EPS for the year was CAD 0.02.

Outlook and guidance

• 2026 guidance: net revenue of CAD 130–135 million (18% growth at midpoint), adjusted EBITDA of CAD 27–31 million (26% growth at midpoint).

• Expect high double-digit international growth and high single-digit domestic growth in 2026.

• Domestic business expected to remain stable with single-digit growth, supported by new products and market share gains.

• International sales expected to continue high double-digit growth, supported by expanded customer and supplier networks.