Auxly Reports Second Quarter 2025 Results
TORONTO, Aug. 14, 2025 /PRNewswire/ - Auxly Cannabis Group Inc. (TSX:XLY) (OTCQB:CBWTF) ("Auxly" or the "Company") a leading consumer packaged goods company in the cannabis products market, today released its financial results for the three and six months ended June 30, 2025. These filings and additional information regarding Auxly are available for review on SEDAR+ at www.sedarplus.ca.
Financial highlights for the second quarter:
Net revenues of $38.8 million, an increase of 33% year-over-year
Gross Margin on Finished Cannabis Inventory Sold of 52%, compared to 41% in Q2 2024
SG&A of $10.3 million, an increase of 11% year-over-year
Adjusted EBITDA of $11.6 million or 30% of net revenue, an increase of 123% year-over-year
Net income of $8.3 million, an increase of 315% year-over-year
Cash flow from operations of $4 million
Cash at quarter end totalled $17 million.
Balance sheet enhancement initiatives after the second quarter:
Amended senior debt, extended maturity, and added $10 million in new credit
Imperial Brands converted remaining debt into equity, reinforcing long-term support
Pro forma Total Debt to TTM Adjusted EBITDA of 1.4x
Pro forma net working capital at June 30, 2025 of $35 million.
See definitions and reconciliation of non-GAAP measures elsewhere in this release.
Commercial highlights for the second quarter:
#3 largest Canadian Licensed Producer with market share of 6.2% at quarter end1
Back Forty exited the quarter as the #1 cannabis brand in Canada
Liquid Imagination and Fire Breath 28g were the top two best-selling SKUs nationwide
Leader in the all-in-one vape category, holding 12 of the top 15 SKUs nationally
Maintained the #1 non-infused pre-roll brand in Ontario.
Management Commentary
Hugo Alves, CEO of Auxly, commented: "Amidst a record quarter for net revenue, gross profit, and Adjusted EBITDA, we believe we are still Just Getting Started. Net revenue increased 33% year-over-year through increased demand for our products, deeper distribution across the country, increasing production volumes, and higher pricing. Customers and consumers love and trust our brands which bodes well for maintaining and increasing market share. Gross margin improved to 52% as we gained production efficiencies, and a stable cost base has translated to a 30% Adjusted EBITDA margin. Subsequent to quarter-end, we were delighted to announce a recapitalization that decreased our debt burden and materially reduced interest expense going forward. Looking forward, we are remaining focused on what works. We are going to provide innovative products to Canadian cannabis consumers, and we plan to capitalize on our scale and market leadership to deliver sustainable financial performance."
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1 HiFyre IQ (July 2025)
Financial Highlights and Key Performance Indicators
For the three months ended:
June 30,
June 30,
(000's)
2025
2024
Change
% Change
Net revenues
$ 38,802
$ 29,178
$ 9,624
33 %
Gross margin on finished cannabis inventory sold*
20,268
12,049
8,219
68 %
Gross margin on finished cannabis inventory sold (%)*
52 %
41 %
11 %
27 %
Net income/(loss)
8,310
2,002
6,308
315 %
Adjusted EBITDA*
11,545
5,173
6,372
123 %
Weighted average shares outstanding
1,315,584,918
1,250,513,293
65,071,625
5 %
For the six months ended:
June 30,
June 30,
(000's)
2025
2024
Change
% Change
Net revenues
$ 71,471
$ 54,419
$ 17,052
31 %
Gross margin on finished cannabis inventory sold*
36,099
21,618
14,481
67 %
Gross margin on finished cannabis inventory sold (%)*
51 %
40 %
11 %
28 %
Net income/(loss)
20,421
(24,010)
44,431
185 %
Adjusted EBITDA*
18,978
7,413
11,565
156 %
Weighted average shares outstanding
1,312,952,853
1,133,676,385
179,276,468
16 %
As at:
June 30,
December 31,
(000's)
2025
2024
Change
% Change
Cash and equivalents
$ 17,026
$ 18,356
$ (1,330)
-7 %
Total assets
258,486
261,530
(3,044)
-1 %
Debt*
48,989
55,683
(5,694)
-10 %
*Non-IFRS or supplementary financial measure. Refer to the Non-GAAP Measures section in the MD&A for definitions.
Results of Operations
For the periods ended:
Three months June 30,
Six months June 30,
(000's)
2025
2024
2025
2024
Revenues
Revenue from sales of cannabis products
$ 59,124
$ 43,433
$ 108,336
$ 81,790
Excise taxes
(20,322)
(14,255)
(36,865)
(27,371)
Total net revenues
38,802
29,178
71,471
54,419
Costs of sales
Costs of finished cannabis inventory sold
18,534
17,129
35,372
32,801
Inventory impairment
147
473
270
929
Gross profit/(loss) excluding fair value items
20,121
11,576
35,829
20,689
Unrealized fair value gain/(loss) on biological transformation
15,842
8,817
28,154
11,590
Realized fair value gain/(loss) on inventory
(13,274)
(4,464)
(22,611)
(6,899)
Gross profit
22,689
15,929
41,372
25,380
