CALGARY, AB – Decibel Cannabis Company Inc., a market leader in cannabis and extract manufactured products, reported its unaudited interim financial results for the three and six month periods ending June 30, 2025.
Second Quarter Highlights
Net Revenue was $29.8 million, a year over year increase of 35%. Net revenue growth in the quarter was primarily a result of contributions from AgMedica Bioscience Inc., which accelerated international sales, coupled with modest net Canadian recreational sales growth. Total sales contributed from AgMedica were $5.4 million, of which $4.7 million were international sales and the remainder net Canadian recreational sales.
Net Canadian Recreational Sales were $23.7 million, a year over year increase of 7%. The increase in net Canadian recreational sales was driven by successful initiatives including: new marketing campaigns, reinvesting in growing the Qwest brand presence, launching ultra high potency vapes and infused pre-rolls, new large format all-in-one disposable, and milled flower.
International Sales were $6.1 million, a year over year increase of $6.1 million, and a quarter over quarter increase of 176%. The increase in international sales was primarily driven by the contributions from AgMedica. Total international sales contributed from AgMedica were $4.7 million.
Gross Margin Before Fair Value Adjustments was 47% in the second quarter of 2025, compared to 42% in the second quarter of 2024.
Adjusted EBITDA of $6.3 million, a year over year increase of 60%. The increase in Adjusted EBITDA for the quarter was primarily driven by international sales and net Canadian recreational sales growth.
Free Cash Flow of $2.2 million, a year over year increase of $4.3 million. The increase in Free Cash Flow is primarily attributable to strong growth in net revenue, partially offset by changes in non-cash working capital.
Adjusted Net Income of $3.4 million, a year over year increase of $2.8 million. Adjusted Earnings per Share were $0.01, an improvement of $0.01 year over year.
As of June 30, 2025, Decibel was in compliance with all of its financial covenants and expects to remain in compliance for the remainder of its twelve-month forecast period.
About Decibel
Decibel is a consumer-focused cannabis company. With brands like General Admission, Qwest, and Vox, Decibel’s offerings are available across Canada, with expanding reach into global markets. Following the acquisition of AgMedica in Q4 2024, Decibel has added an EU-GMP-certified facility and now operates three cultivation facilities and a processing and manufacturing center.
