Decibel Cannabis Q3 profit beats estimates on higher international sales

Decibel Cannabis

19/11/2025 13:11

Overview

Decibel Q3 net revenue rises 37% yr/yr, driven by AgMedica's international sales

Adjusted EPS for Q3 beats analyst expectations

Adjusted EBITDA for Q3 increases 40% yr/yr, driven by international and Canadian sales growth

Outlook

Decibel anticipates 2025 net revenue of approximately C$115 mln

Company expects 2025 Adjusted EBITDA of about C$24 mln

Decibel revises guidance due to regulatory and distribution challenges

Result Drivers

INTERNATIONAL SALES - AgMedica's contributions accelerated international sales, totaling C$7.8 mln

CANADIAN SALES INITIATIVES - Modest growth in Canadian recreational sales driven by new marketing campaigns and product launches

GROSS MARGIN DECLINE - Lower gross margin due to higher testing costs and product types in international sales

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
C$32.90 mln
Q3 Adjusted EPS
Beat
C$0.01
C$0.007 (3 Analysts)
Q3 Adjusted Net Income
C$3.80 mln
Q3 Adjusted EBITDA
C$7.30 mln
Q3 Free Cash Flow
C$1.50 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "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 Decibel Cannabis Company Inc is C$0.25, about 48% above its November 18 closing price of C$0.13

The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 4 three months ago

Press Release: ID:nCNW2k60va

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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.)