Canada's Decibel Cannabis Q2 revenue rises on international sales growth, lifts FY outlook

Decibel Cannabis

20/08/2026 13:11

Overview
Canada cannabis producer's Q2 revenue rose 19% yr/yr to record C$35.6 mln
Adjusted EBITDA for Q2 rose 24% yr/yr, driven by international sales
Company raised full-year 2026 outlook, announced 15:1 share consolidation, eyes normal course issuer bid

Outlook
Decibel raises 2026 net revenue outlook to C$132-C$137 mln from C$130-C$135 mln
Company lifts 2026 adjusted EBITDA forecast to C$28-C$32 mln from C$27-C$31 mln
Decibel expects high single-digit domestic sales growth and strong international sales through 2026

Result Drivers
INTERNATIONAL SALES - 72% yr/yr growth in international sales driven by higher demand and volume for flower and extract products
DOMESTIC BRAND PERFORMANCE - Domestic sales rose 6% yr/yr, supported by new Standard Issue brand and refreshed General Admission portfolio
GROSS MARGIN IMPROVEMENT - Gross margin before fair value adjustments increased to 51% from 47% a year earlier

Company press release: ID:nPn4D4cj6a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Adjusted EPS
Beat
C$0.01
C$0 (1 Analyst)
Q2 Adjusted Net Income
 
C$4.24 mln
 
Q2 Adjusted EBITDA
 
C$7.80 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the pharmaceuticals peer group is "buy"
Wall Street's median 12-month price target for Westleaf Inc is C$0.25, about 117.4% above its August 19 closing price of C$0.12
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 6 three months ago

Reuters Recommended Reads
Aug 18 - Curaleaf launches $260 million takeover bid for Aurora Cannabis
Aug 20 - Denmark's Stenocare Q2 sales more than doubles on domestic demand

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)