Decibel Cannabis Company Inc ( (DBCCF) ) has released its Q3 earnings. Here is a breakdown of the information Decibel Cannabis Company Inc presented to its investors.
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Decibel Cannabis Company Inc. is a consumer-focused cannabis company known for its premium products, operating primarily in the cannabis industry with a strong emphasis on innovation and quality. The company has expanded its reach into global markets, particularly following its acquisition of AgMedica Bioscience Inc.
In its third quarter of 2025, Decibel reported significant growth in its financial results, showcasing a 37% year-over-year increase in net revenue, reaching $32.9 million. This growth was primarily driven by international sales contributions from AgMedica, alongside modest growth in Canadian recreational sales.
Key financial metrics from the quarter include a 40% increase in Adjusted EBITDA to $7.3 million and a 3% rise in net Canadian recreational sales to $24.5 million. However, the gross margin before fair value adjustments saw a decline to 47% from 53% the previous year, attributed to lower margins on international sales. The company also reported a decrease in free cash flow to $1.5 million, reflecting strong revenue growth offset by working capital changes.
Looking ahead, Decibel’s management remains optimistic about the company’s growth trajectory, despite revising its 2025 guidance due to external factors such as regulatory changes in Germany and a recent strike affecting product availability in British Columbia. The company anticipates net revenue of approximately $115 million and Adjusted EBITDA of around $24 million for the full year 2025, underscoring its confidence in overcoming these temporary challenges.