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Auxly Reports 2025 Achievements and Sets Ambitious Goals for 2026

Auxly Cannabis Group Inc., a prominent player in the packaged goods cannabis market, has released its review of impressive milestones reached in 2025, while also outlining its ambitious outlook for 2026. The company's CEO, Hugo Alves, attributes its success to a focused strategy and a dedication to meaningful innovation that resonates with recreational cannabis consumers.

A Year of Remarkable Growth

2025 was a standout year for Auxly, marked by strategic innovation and market-leading performance. The company's standout product, the Back Forty Backpackers pre-roll, became a significant success, swiftly joining the top-selling pre-roll stock-keeping units (SKUs) in Canada. This innovation was notable not just for its unique packaging — a resealable, water-resistant tin that preserves the quality of the product — but also for the enhanced smoking experience it provides due to the precision milled flower wrapped in hemp paper. This attention to quality has solidified its status as a consumer favorite.

Alves expressed pride in the entire Auxly team, emphasizing that the company had successfully transformed into a profitable operation while maintaining its commitment to cost leadership and financial discipline. This strong performance has played a significant role in Auxly achieving the coveted position of being the #1 cannabis brand in Canada throughout 2025.

Focused Approach for Future Growth

Looking ahead to 2026, Auxly plans to invest between $10 million to $12 million in growth-related capital expenditures. The aim of these investments is to enhance production capabilities while positioning the company for direct access to international markets. With a robust cash flow projected to fully fund this initiative, Alves remains optimistic about the company’s future.

A key highlight of Auxly's innovative portfolio for 2025 was the South Point brand, launched to provide high-quality dried flower and pre-rolls without the premium price tag that typically accompanies such products. This new line emphasizes craftsmanship and authenticity, aiming to capture the essence of its Ontario sourcing while offering a product that stands out in quality and branding. This initiative enhances Auxly's goal of broadening its market share and catering to evolving consumer needs.

Market Position and Distribution Expansion

In addition to launching innovative products, Auxly expanded its distribution to Quebec, Canada’s second-largest cannabis market. The early performance has confirmed the company's strategy, with Back Forty quickly becoming the fourth largest brand in Quebec, and notable SKUs like Liquid Imagination and Fire Breath dominating sales.

The restructuring efforts in early July 2025 marked a significant financial turning point for Auxly. By settling debts and amending its credit arrangement, the company has seen a marked improvement in its financial health, transitioning from a negative working capital position to reporting a positive working capital of $49 million with notable cash reserves. This resurgence strengthens Auxly's attractiveness to potential investors and emphasizes its strategic long-term vision.

Commitment to Sustainable Growth

The significant strides made in profitability have led to a trailing twelve-month net revenue of $146 million and an adjusted EBITDA of $42 million. With efficient operations, strategic innovation, and stringent financial management, Auxly aims to maintain its position as a leader in the cannabis market.

Looking Forward to 2026

As Auxly approaches 2026, it continues to focus on sustainable profitability and growth, addressing both domestic and international markets. By enhancing its product range and expanding its distribution capabilities, the company aims to leverage shifts in social acceptability and consumer demand. Investment in infrastructure will boost capacity, efficiency, and enable direct international shipments, paving the way for significant growth.

Auxly believes that its strong market position and a commitment to quality will contribute significantly to its continued success. The strategy is clear: it aims to deepen its leadership position in Canada while exploring viable international opportunities, always with an eye on maintaining profitability and operational excellence.

As the company forges ahead, Auxly remains dedicated to quality and the cultivation of strategic partnerships, ensuring its trajectory aligns with consumer preferences and market trends. This coming year promises to be a pivotal period for Auxly, as it endeavors to redefine cannabis consumer experiences through innovation and focused expansion.