Decibel Reports Q4 and FY 2025 Financial Results

CALGARY – Decibel Cannabis Company Inc. posted audited results for the fourth quarter and full year ended December 31, 2025, showing overall revenue growth driven largely by its international operations.

Net revenue for the year reached $113 million, up 22% from $92.5 million in 2024. International sales jumped to $24.2 million, a 484% increase. Adjusted EBITDA rose 29% to $23.2 million, while free cash flow climbed 292% to $5.5 million. The company recorded an adjusted net income of $9.7 million but posted a net loss of $2.9 million.

In the fourth quarter, net revenue totaled $28.7 million, a 13% gain from the year-earlier period. International sales reached $7.6 million, more than double the prior-year figure, with the acquired AgMedica Bioscience facility adding $7.6 million in total revenue for the quarter, nearly all of it from overseas markets. Net Canadian recreational sales came in at $21.3 million, down 3%, after a month-long strike at the British Columbia liquor distribution branch halted shipments. Gross margin before fair-value adjustments held at 49%. Adjusted EBITDA for the quarter rose 19% to $6.2 million.

CEO Benjamin Sze called the year a strong one for integration and execution. “Our 2025 performance tells a compelling story with 22% revenue growth, $23 million of Adjusted EBITDA and free cash flow up almost 3x from last year,” he said in the company’s release. “All in the same period where we successfully integrated a transformational acquisition and more than doubled its Adjusted EBITDA target with a growing backlog of international business.”

Decibel also laid out its 2026 outlook, forecasting net revenue of $130 million to $135 million and Adjusted EBITDA of $27 million to $31 million. Management expects high double-digit growth from international markets, backed by supply deals with more than 14 customers and a network of over 40 GACP-compliant cultivators. On the domestic side, the company sees high single-digit gains from fresh product launches and brand updates, including early traction for its Standard Issue value line in the vape category. Decibel runs cultivation and processing sites in Alberta, Saskatchewan and Ontario and markets brands that include Qwest, General Admission and Standard Issue across flower, vapes, pre-rolls and other formats.

The numbers reflect a familiar story across the Canadian cannabis sector: limited growth at home amid high taxes and crowded shelves, offset by opportunities abroad. Decibel’s EU-GMP capabilities at the AgMedica site have helped it capture medical export demand, though temporary hurdles such as Germany’s import limits and the British Columbia distribution disruption trimmed fourth-quarter momentum.

After year-end, the company closed a $61 million credit facility in February that stretches debt maturities and eases near-term payments. It also reached a conditional deal to sell its Creston, British Columbia cultivation site for $2.5 million, a step expected to cut annual costs by about $4 million with no hit to projected revenue.