Canada's Auxly Q4 revenue rises on higher volumes and pricing

Overview

• Canada cannabis CPG firm's Q4 revenue grew 16% yr/yr

• Adjusted EBITDA for Q4 rose 14% yr/yr

• Net income for Q4 declined due to realized fair value losses on inventory

Outlook

• Auxly plans C$10-12 mln capital investment at Auxly Leamington in 2026

• Company expects Canadian cannabis market to benefit from rising social acceptability and illicit market share gains

• Auxly is actively evaluating international export opportunities and plans investment in export capabilities in 2026

Result Drivers

• HIGHER VOLUMES AND PRICING - Q4 revenue growth was driven by increased volume and pricing across dried flower, pre-roll and vape products

• OPERATIONAL IMPROVEMENTS - Gross margin benefited from favorable production costs at Auxly Leamington and operational improvements in cultivation and manufacturing

• HIGHER SG&A - SG&A expenses increased due to investments to support higher sales

Company press release: ID:nCNWkGMJFa

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the pharmaceuticals peer group is "buy"

• Wall Street's median 12-month price target for Auxly Cannabis Group Inc is C$0.25, about 72.4% above its March 25 closing price of C$0.15

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