Auxly Reports Q4 and FY 2025 Financial Results

TORONTO – In the Canadian Cannabis industry that continues to reward discipline and brand strength, Auxly Cannabis Group Inc., known for its focus on consumer-packaged goods and leading brands, has posted solid results for the fourth quarter and full year 2025, underscoring its position as one of the more consistent performers among licensed producers.

The company posted full-year net revenue of $151.5 million, up 24% from $122.3 million in 2024. Gross margin on finished Cannabis inventory sold climbed to 54% from 46% the prior year. Adjusted EBITDA reached $43.8 million, a 64% increase, with the margin expanding to 29% from 22%. Net income totaled $41.9 million, or 3 cents per basic and diluted share.

For Q4 alone, net revenue rose 16% to $40.1 million. Gross margin on finished Cannabis inventory sold edged up to 56% from 54% in the same period of 2024. Adjusted EBITDA came in at $12.5 million, up 14%, while the margin held near 31%. Net income was $900,000, or less than 1 cent per share. Cash stood at $32.3 million at year-end, with total debt to adjusted EBITDA at 1.1x.

Auxly, which ranks as Canada’s third-largest licensed producer by market share, credited the performance to higher volumes and pricing in dried flower, pre-rolls and vapes, along with cost efficiencies at its Leamington facility. Its flagship Back Forty brand held the top spot among Canadian Cannabis brands by dollar sales throughout 2025. The company also introduced its new premium-tier South Point brand in Alberta and Ontario during the quarter.

Selling, general and administrative expenses rose 22% for the year to $43.4 million, reflecting investments to support sales growth. Cash flow from operations before working-capital changes reached $38.6 million for the full year, converting 88% of adjusted EBITDA. In the fourth quarter that figure was $11.9 million, or 95% conversion.

CEO Hugo Alves described the year as a milestone, noting that quarterly revenue topped $40 million while the company maintained what he called CPG-style margins. “Our balance sheet also strengthened materially during the year, ending Q4 with $32 million in cash against $46 million in total debt,” Alves said in the release. He pointed to lower interest costs after the earlier conversion of debt held by Imperial Brands and other repayments.

Auxly outlined plans for $10 million to $12 million in capital spending in 2026 to boost quality and capacity at Leamington and prepare for direct international shipments. Subsequent to the quarter, the company took a conservative role as debtor-in-possession lender and stalking-horse bidder for certain assets of Ayurcann Inc., a move aligned with its focus on core vape and pre-roll categories.

Looking ahead, the company’s 2026 capital program and selective pursuit of complementary assets will be key challenges. To ensure forthcoming positive quarterly reports, key factors include efficient cultivation and distribution processes, as well as the Canadian market’s response to new product formats and regulatory shifts. Auxly entered the year with a cleaner balance sheet than many competitors, a leading brand portfolio and positive cash generation – aspects that position it to weather sector volatility while pursuing selective growth.