#None #Toronto #Q3 Financials #Auxly Cannabis #Back Forty

Auxly Cannabis Group Reports Third Quarter 2025 Results

On November 13, 2025, Auxly Cannabis Group Inc. (TSX: XLY) (OTCQB: CBWTF) released its financial performance for the third quarter of 2025, marking a significant milestone for the company operating in the cannabis sector.

Financial Highlights

Auxly has demonstrated remarkable growth, reporting net revenues of $39.9 million for the quarter, which reflects a robust 20% increase compared to the same period last year. This substantial rise was complemented by a gross margin on finished cannabis inventory sold that reached an impressive 56%, a notable improvement from 47% in Q3 2024.

Additionally, the company's selling, general, and administrative (SGA) expenses increased by 38% to $11.6 million, a necessary expenditure to support their expanding operations. Adjusted EBITDA soared to $12.3 million, marking a 48% year-over-year growth, thereby establishing an Adjusted EBITDA margin of 31%. The net income for the quarter surged to $20.5 million, a staggering increase of 533% from the previous year.

Cash flow from operations before working capital changes also saw a significant rise of 82%, amounting to $11 million, with cash reserves at the end of the quarter totaling $30.5 million. These numbers not only indicate a strong financial position but also suggest Auxly’s effective management strategy in navigating the cannabis market dynamics.

Brand Leadership and Market Performance

Auxly has solidified its standing as the third-largest licensed producer in Canada by market share, showcasing strong brand recognition. The company’s brand, Back Forty, emerged as the top-selling cannabis brand in Canada for Q3 2025. Moreover, products like Liquid Imagination and Fire Breath 28g became the best-selling SKUs nationwide, demonstrating robust consumer acceptance.

The company continues to lead in the all-in-one vape category, capturing 10 out of the top 15 SKUs across Canada. This product innovation and market penetration underscore Auxly's commitment to maintaining its competitive edge in the saturated cannabis market.

Management Insights

Hugo Alves, CEO of Auxly, expressed pride in the company's accomplishments, attributing the success to robust product innovation, increased capacity, and efficient operations. Alves emphasized the importance of optimizing costs while expanding the product line, which resulted in a sustainable growth trajectory. With a strengthened balance sheet, Auxly has plans to pay off high-interest debt, resulting in notable interest expense savings, while evaluating avenues for organic growth.

Future Outlook

Looking ahead, Auxly plans to invest $2.0 million to $2.5 million of cash flow from operations into capital projects at their facilities in Leamington and Charlottetown. The company anticipates continued revenue growth fueled by consumer demand, innovative product offerings, and operational efficiency.

Moreover, Auxly sees long-term potential in international cannabis markets. They plan to explore export opportunities, leveraging their strong brand and production capacity. With clearly defined strategies, Auxly is poised to enhance its leadership in the cannabis sector, forecasted to benefit from societal acceptance and an evolving market landscape.

In summary, Auxly Cannabis Group's Q3 2025 results demonstrate not only financial resilience but also a commitment to leading the charge in the cannabis industry through thoughtful strategies and high-quality offerings, promising a bright future for its stakeholders.