Avicanna (AVCN) AI Stock Analysis

• Market Cap: C$24.18M
• Dividend Yield: N/A
• Average Volume (3M): 55.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.54
• Revenue Growth: 2.41%
• EPS Growth: 74.61%
• Country: CA
• Employees: 87
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.01
• Shares Outstanding: 117,933,370
• 10 Day Avg. Volume: 77,161
• 30 Day Avg. Volume: 55,794
• PEG Ratio: 0.13
• Price to Book (P/B): 13.19
• Price to Sales (P/S): 1.20
• P/FCF Ratio: -10.34
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: C$0.19 ▼(-13.18% Downside)

The score is held back primarily by continued losses and negative cash flow despite strong revenue growth and improving gross margins, plus a weak technical trend (price below major moving averages and negative MACD). Valuation also screens poorly due to the negative P/E, consistent with the lack of current profitability.

Positive Factors

Revenue & gross margin improvement

Sustained ~48% TTM revenue growth combined with a meaningful gross margin lift to ~52% indicates improving unit economics and product mix. This strengthens the company’s ability to reinvest in R&D and manufacturing scale, supporting a durable path toward operating leverage if SG&A is controlled.

Cleaner balance sheet with no reported debt

Zero reported debt and positive equity reduce insolvency and interest burden risks, giving Avicanna strategic flexibility to fund clinical and manufacturing initiatives via equity or partnerships. A cleaner balance sheet supports longer-term investment in product development without immediate debt servicing constraints.

Regulatory shift supporting cannabis research

Reclassification to Schedule III materially lowers regulatory barriers to clinical research and may broaden reimbursement and investor interest. For a cannabinoid-focused biopharma, this structural change improves prospects for clinical trials, partnerships, and commercial adoption over the medium term.

Negative Factors

Negative operating and net margins

Persisting negative EBIT and net margins despite revenue gains indicate the company has not converted scale into profitability. Over months, this challenges self-sufficiency and increases reliance on external capital unless margins improve through sustained gross margin gains or meaningful operating expense control.

Ongoing negative cash generation

Continued negative operating and free cash flow means the business consumes cash to operate and invest. This creates recurring financing needs that can dilute shareholders or constrain R&D and manufacturing expansion, posing a durable risk until the company achieves sustained positive cash generation.

Limited equity cushion and negative ROE

A relatively small shareholders’ equity base and negative ROE leave limited downside protection against further losses and reduce borrowing capacity. Structurally, this increases refinancing and dilution risk if operating losses continue, potentially limiting long-term strategic options and investment pace.

Avicanna Business Overview & Revenue Model

Company Description

Avicanna Inc., a commercial-stage biopharmaceutical company, engages in the research and development of evidence-based products for consumer medical and pharmaceutical segments worldwide. The company collaborates with Canadian academic and medical institutions. Its scientific platform includes research and development, and clinical development that leads to the commercialization of approximately twenty products across four main market segments. The company provides medical and wellness products containing cannabidiol, cannabigerol, and tetrahydrocannabinol under the RHO Phyto brand; functional CBD consumer derma-cosmetic and topical products under the Pura H&W and Pura Earth brand names; and cannabis dried flowers, standardized seeds, full spectrum extracts, cannabinoid distillates, isolated cannabinoids, and bulk formulations derived from hemp and cannabis cultivars under the Aureus brand. It also develops pharmaceutical products for epidermolysis bullosa, dermatology, chronic pain, and various neurological disorders. The company has research collaboration with Dr. Christine Allen'sResearch Group for the development of a cannabinoid-based treatment for lung inflammation associated with COVID19. Avicanna Inc. was incorporated in 2016 and is headquartered in Toronto, Canada.

How the Company Makes Money

Avicanna generates revenue through multiple key streams, including the sale of its proprietary cannabinoid formulations and products to healthcare providers and retailers. The company's revenue model is bolstered by its partnerships with other organizations in the cannabis and pharmaceutical sectors, which facilitate product development and expansion into new markets. Additionally, Avicanna may benefit from licensing agreements for its technologies and formulations, providing a supplemental income source. The company also engages in research collaborations that can lead to financial support and shared revenue from product sales, further enhancing its revenue potential.

Avicanna Financial Statement Overview

Summary

Revenue is growing strongly (~+48% TTM) and gross margin has improved (~52% TTM vs ~40% in 2023), with a cleaner balance sheet (positive equity and $0 debt). However, profitability and cash generation remain weak: EBIT and net margins are still negative (~-7% each) and operating/free cash flow are negative (about -$1.2M / -$1.8M TTM).

Income Statement

TTM (Trailing-Twelve-Months) revenue is $25.5M with strong growth versus the prior year (about +48%), and gross margin has improved meaningfully over time (about 52% TTM vs ~40% in 2023). However, profitability is still negative: TTM operating results remain in the red (EBIT margin ~-7%) and net margin is also negative (~-7%), indicating the business has not yet converted scale and higher gross profit into sustainable earnings.

Balance Sheet

The balance sheet shows a notable cleanup versus prior years: stockholders’ equity has turned positive (about $3.1M TTM vs negative in 2022–2023), and total debt is reported at $0 in TTM (down from modest debt in 2024 and higher levels earlier). The main weakness is returns: equity is positive but still generating losses (return on equity remains negative TTM), and the equity base is relatively small versus total assets, leaving less cushion if losses persist.

Cash Flow

Cash generation remains a key pressure point. TTM operating cash flow is negative (about -$1.2M) and free cash flow is also negative (about -$1.8M), meaning the company is still consuming cash to operate and invest. The improvement versus 2024 is a positive signal (less cash burn year-over-year), but the business is not yet self-funding and would likely remain dependent on external financing or further cost/revenue improvements to reach sustained positive cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.50M	25.46M	16.79M	4.05M	3.27M	1.57M
Gross Profit	13.33M	12.90M	6.66M	1.11M	2.83M	-570.00K
EBITDA	-1.05M	-2.43M	-7.36M	-12.18M	-15.13M	-33.70M
Net Income	-1.88M	-3.62M	-8.74M	-14.73M	-16.77M	-32.86M
Balance Sheet
Total Assets	21.17M	20.12M	21.97M	17.62M	22.30M	30.16M
Cash, Cash Equivalents and Short-Term Investments	464.85K	448.03K	477.20K	1.19M	31.00K	2.52M
Total Debt	0.00	109.23K	1.80M	3.21M	1.66M	1.94M
Total Liabilities	9.47M	10.38M	14.00M	14.16M	15.39M	16.25M
Stockholders Equity	3.11M	2.31M	-112.50K	-383.56K	1.15M	6.02M
Cash Flow
Free Cash Flow	-1.79M	-2.95M	-1.96M	-7.50M	-12.45M	-15.43M
Operating Cash Flow	-1.23M	-2.55M	-1.40M	-7.44M	-11.66M	-13.97M
Investing Cash Flow	-554.06K	-402.57K	-3.05M	810.24K	760.83K	-2.71M
Financing Cash Flow	1.63M	3.41M	3.55M	9.90M	10.06M	17.39M

Avicanna Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AVCN, the sentiment is Negative. The current price of 0.22 is below the 20-day moving average (MA) of 0.22, below the 50-day MA of 0.23, and below the 200-day MA of 0.25, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 31.49 is Neutral, neither overbought nor oversold. The STOCH value of 26.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:AVCN.

Avicanna Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CWEB	52 Neutral	C$114.78M	-3.08	-109.83%	―	-4.23%	37.33%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
AVCN	46 Neutral	C$24.18M	-11.89	-77.67%	―	2.41%	74.61%
CRDL	46 Neutral	C$133.00M	-3.13	-341.20%	―	―	21.17%
INNO	46 Neutral	C$33.07M	-9.95	-71.80%	―	-3.94%	-17.62%
LABS	45 Neutral	C$29.45M	-3.63	-19.10%	―	18.06%	34.58%
PCLO	44 Neutral	C$12.31M	-2.23	―	―	15.64%	58.47%

Avicanna Corporate Events

Avicanna Strengthens Board with Appointment of Capital Markets Veteran Michael Kott

Avicanna Inc. announced a board transition with the resignation of director Paul Fornazzari and the appointment of seasoned capital markets executive and long-time shareholder Michael Kott to its board, effective January 1, 2026. Kott, founder and CEO of CM-Equity AG and now head of a global single-family office, brings more than three decades of experience in international capital markets, governance and cross-border investments, which the company’s leadership expects will support its next stage of growth, scaling efforts and value creation for shareholders amid growing global momentum for evidence-based cannabinoid pharmaceuticals.

The most recent analyst rating on (TSE:AVCN) stock is a Hold with a C$0.22 price target. To see the full list of analyst forecasts on Avicanna stock, see the TSE:AVCN Stock Forecast page.

Avicanna Backs U.S. Cannabis Reclassification as It Advances 2025 Clinical and R&D Programs

Avicanna has endorsed the U.S. administration’s executive order to reclassify cannabis to a less restrictive category, arguing that the shift aligns with its evidence-based approach to cannabinoid medicines and could unlock greater clinical research, innovation, investment and, over time, reimbursement and patient access for rigorously validated therapies. The company also reported 2025 scientific and medical progress, including advancing a large real-world evidence study with University Health Network and initiating a Phase II trial in arthritic pain, expanding its pre-clinical and product pipeline with a new U.S. patent and commercialization of technologies such as PwdRx to enhance its Rho Phyto portfolio, and broadening medical affairs activities through education, collaborations and its MyMedi.ca platform to improve patient support, clinical guidance and insurance coverage.

The most recent analyst rating on (TSE:AVCN) stock is a Hold with a C$0.22 price target. To see the full list of analyst forecasts on Avicanna stock, see the TSE:AVCN Stock Forecast page.

Avicanna Advances Cannabinoid Delivery with Novel PwdRx Platform

Avicanna announced positive preclinical results and a provisional patent application for its novel Powder Drug Delivery System (PwdRx) platform, which enhances the bioavailability and absorption of cannabinoids. This advancement addresses formulation challenges associated with cannabinoids and offers potential new pharmaceutical and commercial opportunities, reinforcing Avicanna’s leadership in cannabinoid science and technology.

The most recent analyst rating on (TSE:AVCN) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Avicanna stock, see the TSE:AVCN Stock Forecast page.

Avicanna Reports Q3 2025 Growth and Strategic Advances

Avicanna Inc. reported its Q3 2025 financial results, highlighting continued revenue growth in Canada and internationally, driven by medical affairs initiatives and commercial advancements. Despite facing short-term margin pressures, the company remains optimistic about achieving sustainable profitability. Key developments include a significant increase in Canadian sales, the issuance of a U.S. patent for a topical cannabinoid composition, and the first export of organic certified cannabis flower to Switzerland. Additionally, Avicanna launched the re+PLAY CBD wellness brand in the U.S., showcasing its proprietary formulations.

The most recent analyst rating on (TSE:AVCN) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Avicanna stock, see the TSE:AVCN Stock Forecast page.