Financial highlights for the quarter as compared to the three months ended September 30, 2024:
Net revenues of $39.9 million, an increase of 20%
Gross Margin on Finished Cannabis Inventory Sold of 56%, compared to 47% in Q3 2024
SG&A of $11.6 million, an increase of 38%
Adjusted EBITDA of $12.3 million, an increase of 48% and representing an Adjusted EBITDA margin of 31%
Net income of $20.5 million, an increase of 533%
Cash flow from operations, before working capital changes, of $11.0 million, an increase of 82%
Cash at quarter end totalled $30.5 million
See definitions and reconciliation of non-GAAP measures elsewhere in this release.
Commercial highlights for the quarter:
#3 largest Canadian Licensed Producer by market share1
Back Forty was 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 10 of the top 15 SKUs nationwide
Held 3 of the top 10 non-infused pre-roll SKUs nationwide
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1 HiFyre IQ (October 2025)
Management Commentary
Hugo Alves, CEO of Auxly, commented: "Through product innovation, increased capacity utilization, favourable pricing and product mix, the Auxly team delivered another strong quarter of revenue and earnings growth. Our operating efficiency and disciplined cost control, resulted in 48% year-over-year Adjusted EBITDA growth, CPG-style Adjusted EBITDA margins of 31%, and $11 million in cash flow from operations. Additionally, our focused strategy and culture of innovation has continued to strengthen Back Forty's position as the leading brand in Canadian cannabis. Now that we are accumulating free cash flow, we repaid high-interest debt subsequent to quarter-end resulting in approximately $900,000 of annualized interest expense savings, and we are currently evaluating organic growth alternatives that should continue to drive brand leadership, revenue growth and profitability over the long-term."
Financial Highlights and Key Performance Indicators
For the three months ended:
September 30,
September 30,
(000's)
2025
2024
Change
% Change
Net revenues
$ 39,898
$ 33,284
$ 6,614
20 %
Gross Margin on Finished Cannabis Inventory Sold*
22,366
15,559
6,807
44 %
Gross Margin on Finished Cannabis Inventory Sold (%)*
56 %
47 %
9 %
19 %
Net income/(loss)
20,491
3,239
17,252
533 %
Adjusted EBITDA*
12,269
8,286
3,983
48 %
Weighted average shares outstanding - basic
1,341,625,196
1,265,144,208
76,480,988
6 %
For the nine months ended:
September 30,
September 30,
(000's)
2025
2024
Change
% Change
Net revenues
$ 111,369
$ 87,703
$ 23,666
27 %
Gross Margin on Finished Cannabis Inventory Sold*
58,465
37,177
21,288
57 %
Gross Margin on Finished Cannabis Inventory Sold (%)*
52 %
42 %
10 %
24 %
Net income/(loss)
40,912
(20,771)
61,683
297 %
Adjusted EBITDA*
31,247
15,699
15,548
99 %
Weighted average shares outstanding - basic
1,322,615,328
1,177,818,866
144,796,462
12 %
As at
September 30,
December 31,
(000's)
2025
2024
Change
% Change
Cash and cash equivalents
$ 30,479
$ 18,356
$ 12,123
66 %
Total assets
276,429
261,530
14,899
6 %
Debt*
54,000
54,683
(683)
-1 %
*Non-IFRS or supplementary financial measure. Refer to the Non-GAAP Measures section for definitions.
Results of Operations
For the periods ended:
Three months September 30,
Nine months September 30,
(000's)
2025
2024
2025
2024
Revenues
Revenue from sales of cannabis products
$ 59,363
$ 50,994
$ 167,699
$ 132,784
Excise taxes
(19,465)
(17,710)
(56,330)
(45,081)
Total net revenues
39,898
33,284
111,369
87,703
Costs of sales
Costs of finished cannabis inventory sold
17,532
17,725
52,904
50,526
Inventory impairment
235
674
505
1,603
Gross profit/(loss) excluding fair value items
22,131
14,885
57,960
35,574
Unrealized fair value gain/(loss) on biological transformation
18,093
9,964
46,247
21,554
Realized fair value gain/(loss) on inventory
