Decibel Reports Q2 2026 Financial Results

CALGARY – Decibel Cannabis Co. Inc. reported second-quarter net revenue of $35.6 million for the period ended June 30, 2026, the best three-month result in the company’s history. A licensed Canadian Cannabis producer simultaneously raised its full-year 2026 guidance and announced a 15-to-one share consolidation.

Net revenue grew 19% year-over-year, with domestic sales rising 6% to $25 million, while international sales surged 72% to $10.6 million. CEO Benjamin Sze called it a record quarter across the business, adding that the results gave management the confidence to raise guidance and advance the share consolidation.

The international story was the defining driver. International revenue growth reflected early impacts from improved German permit timelines, with Decibel expecting to convert its existing export backlog to revenue through the balance of the year. AgMedica’s EU GMP-certified platform continued to perform above its original underwriting case, validating the acquisition’s core logic. The company now counts more than 16 international customers under executed supply agreements, with over 50 GACP-certified cultivators onboarded.

On the domestic side, General Admission held its position as Canada’s top infused pre-roll brand, and Decibel maintained third overall among all pre-roll licensed producers. Standard Issue, the newer entrant, reached sixth in the vape category with a 2.9% market share while also placing seventh in infused pre-rolls.

Adjusted EBITDA rose 24% year-over-year to $7.8 million, and free cash flow climbed 122% to $4.9 million. Gross margin before fair value adjustments reached 51%, up from 47% in Q2 2025. For the six months ended June 30, 2026, net revenue totaled $65.4 million, compared to $51.1 million in the same period of 2025.

On the strength of those results, Decibel raised its full-year 2026 revenue guidance to $132–$137 million, up from a prior range of $130–$135 million, and adjusted EBITDA guidance to $28–$32 million, from $27–$31 million.

The company also executed a 15-to-1 share consolidation, previously authorized by shareholders in December 2025. Outstanding shares will contract from approximately 577 million to 38.5 million, with post-consolidation trading on the TSX Venture Exchange expected around September 1, 2026. The board cited improved institutional appeal and better trading liquidity as the rationale. Decibel added that it is working toward a Normal Course Issuer Bid and will update the market once details are confirmed.

Decibel’s Q2 is a proof point for the international thesis the company has been building through AgMedica. International revenue now accounts for close to 30% of total net sales [at 72% growth] – a structurally meaningful shift for a company that was predominantly Canada-facing twelve months ago. The 51% gross margin and 122% free cash flow expansion signal that the scaling is translating to real earnings quality, rather than top-line velocity alone. The 15-to-1 consolidation is a clear statement of intent toward institutional eligibility, and the anticipated NCIB confirms the balance sheet has room to act. The remainder of 2026 turns on two variables: how quickly the German export backlog converts to recognized revenue, and how Standard Issue continues to perform in a competitive vape and infused pre-roll market. Current indicators are pointing in the right direction, but H2 2026 will settle the question.