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Auxly Cannabis Group ( (TSE:XLY) ) has provided an announcement.
Auxly reported strong financial performance for 2025, with net revenue rising 24% to $151.5 million and gross margin on finished cannabis inventory sold improving to 54%. Adjusted EBITDA jumped 64% to $43.8 million, yielding a 29% margin, while net income reached $41.9 million and operating cash flow before working capital represented 88% conversion from Adjusted EBITDA.
In the fourth quarter, Auxly generated $40.1 million in revenue and maintained robust margins, ending the period with $32.3 million in cash and a total debt to Adjusted EBITDA ratio of 1.1x. Management highlighted Back Forty’s position as Canada’s top cannabis brand, the launch of premium brand South Point, a $10–$12 million 2026 capital program to upgrade facilities and enable international distribution, and a conservative but strategic move to act as DIP lender and stalking horse bidder for Ayurcann’s assets to strengthen its vape and pre-roll footprint while preserving balance sheet flexibility.
The most recent analyst rating on (TSE:XLY) stock is a Hold with a C$0.14 price target. To see the full list of analyst forecasts on Auxly Cannabis Group stock, see the TSE:XLY Stock Forecast page.
Spark’s Take on XLY Stock
According to Spark, TipRanks’ AI Analyst, XLY is a Neutral.
The score is driven by improved financial performance and a low P/E, signaling a meaningful TTM profitability turnaround and discounted valuation. These positives are tempered by weak technical momentum and elevated consistency risk from historically volatile earnings and less robust cash conversion.
To see Spark’s full report on XLY stock, click here.
More about Auxly Cannabis Group
Auxly Cannabis Group Inc. is a Toronto-based consumer packaged goods company focused on cannabis products for the Canadian market. The company operates as a licensed producer with a portfolio of brands, including flagship label Back Forty, and concentrates on categories such as vapes, pre-rolls and other cannabis formats, with a strategy centered on winning share in its domestic market while preparing for international distribution.
Average Trading Volume: 708,786
Technical Sentiment Signal: Buy
Current Market Cap: C$198.2M
See more insights into XLY stock on TipRanks’ Stock Analysis page.