Auxly Cannabis (TSX: XLY) posted Q4 2025 net revenue of CAD 40.1 million (+16% YoY) and full-year net revenue of CAD 151.5 million (+24% YoY), with EPS of CAD 0.001 (Q4) and CAD 0.03 (full year). The stock rose 7.69% in pre-market trading following the announcement, reflecting investor confidence despite a slight revenue miss against the CAD 40.9 million forecast.
About Auxly Cannabis Group Inc.
Auxly Cannabis Group Inc. (TSX: XLY; OTCQB: CBWTF) is a leading Canadian consumer packaged goods (CPG) company in the cannabis products market, headquartered in Toronto, Ontario. Founded in 2013, the company has built a portfolio of brands designed for a broad range of cannabis consumers, with differentiation across price points. Its product portfolio includes dried cannabis, pre-rolls, vapes, cannabis oils, edibles, extracts, and topicals, marketed under brands like Back Forty, Foray, Parcel, Dosecann, and Kolab Project.
As of March 2026, Auxly carries a market capitalization of approximately CAD 182 million (TSX) and employs around 388 people. The company trades near CAD 0.13-0.15 per share and holds a Price-to-Earnings (normalized) ratio of approximately 5.54, a Price-to-Sales of 1.36, and a dividend yield of 0.00%. Auxly ranks as the #3 Canadian Licensed Producer by market share and its flagship brand, Back Forty, held the #1 cannabis brand position in Canada for all of 2025 by dollars sold.
Top Financial Highlights
- Q4 2025 Net Revenue reached CAD 40.1 million, a 16% increase vs. Q4 2024’s CAD 34.6 million
- Full Year 2025 Net Revenue hit CAD 151.5 million, a 24% increase vs. CAD 122.3 million in 2024
- Q4 Gross Margin on Finished Cannabis Inventory Sold improved to 56%, up from 54% in Q4 2024
- Full Year Gross Margin on Finished Cannabis Inventory Sold expanded to 54%, up from 46% in 2024
- Q4 Net Income was CAD 0.9 million (CAD 0.001 per basic and diluted share), compared to CAD 4.4 million in Q4 2024
- Full Year Net Income was CAD 41.9 million (CAD 0.03 per share), a turnaround of CAD 58.2 million vs. a net loss of CAD 16.3 million in 2024
- Q4 Adjusted EBITDA was CAD 12.5 million, a 14% increase year over year
- Full Year Adjusted EBITDA reached CAD 43.8 million, a 64% increase vs. CAD 26.7 million in 2024
- Adjusted EBITDA Margin for full year 2025 was 29%, vs. 22% in 2024
- Cash Flow from Operations (before working capital changes) in Q4 was CAD 11.9 million, representing a 95% conversion from Adjusted EBITDA
- Cash at Quarter End totaled CAD 32.3 million, up from CAD 18.4 million at end of 2024
- Total Debt stood at CAD 46.3 million, down from CAD 54.7 million, a 15% reduction year over year
- Total Debt to Adjusted EBITDA ratio improved to 1.1x at quarter end
- 2026 Capital Program of CAD 10 to 12 million focused on improving quality and throughput at Auxly Leamington and enabling direct international distribution
Beat or Miss?
| Metric | Reported | Estimated / Expected | Difference / Analysis |
| Q4 Net Revenue | CAD 40.1M | CAD 40.9M | -CAD 0.8M (-1.93% miss) |
| Full Year Net Revenue | CAD 151.5M | CAD 152.2M (est.) | Slightly below consensus; still +24% YoY |
| Q4 EPS (basic/diluted) | CAD 0.001 | N/A | First positive Q4 EPS result; strong turnaround |
| Full Year EPS | CAD 0.03 | N/A | Swung from a loss of CAD -0.01 in 2024 |
| Q4 Adjusted EBITDA | CAD 12.5M | N/A | +14% YoY beat |
| Full Year Adjusted EBITDA | CAD 43.8M | N/A | +64% YoY; margin expanded to 29% |
| Q4 Gross Margin (Finished Cannabis) | 56% | N/A | +200 bps improvement vs. 54% in Q4 2024 |
| Cash at Quarter End | CAD 32.3M | N/A | +76% vs. CAD 18.4M at end of 2024 |
What Leadership Is Saying?
“Q4 2025 was a strong finish to a milestone year for Auxly. In the fourth quarter we surpassed $40 million in quarterly net revenue while maintaining CPG-style margins, including 56% Gross Margin on Finished Cannabis Inventory Sold and a 31% Adjusted EBITDA margin. For the full year, Auxly delivered 24% net revenue growth and 64% Adjusted EBITDA growth as we continued to scale our business while expanding profitability. Our flagship brand, Back Forty, also strengthened its leadership position and was the #1 cannabis brand in Canada by dollars sold for the entirety of 2025 which is a testament to the strength of our products, innovation, and nation-wide distribution.” – Hugo Alves, CEO, Auxly Cannabis Group Inc.
“2025 was a record year financially for Auxly. Net revenue reached CAD 151.5 million, an increase of 24% year-over-year. Gross margin on finished cannabis inventory sold increased to 54%, up from 46% in 2024. Adjusted EBITDA was CAD 43.8 million, an increase of 64% year-over-year and representing an EBITDA margin of 29%. Our Q4 revenue growth and improvements in profitability are attributable to the same factors that drove our full-year performance. In terms of our outlook for 2026, we are expecting continued growth and profitability.” – Auxly Management, Q4 2025 Earnings Call (March 27, 2026)
Historical Performance
Auxly Q4 YoY Comparison
| Category | Q4 2025 | Q4 2024 | Change (%) |
| Net Revenue | CAD 40.1M | CAD 34.6M | 16% |
| Net Income | CAD 0.9M | CAD 4.4M | -79% |
| Gross Margin on Finished Cannabis | 56% | 54% | +200 bps |
| SG&A Expenses | CAD 11.7M | CAD 9.3M | 26% |
| Adjusted EBITDA | CAD 12.5M | CAD 11.0M | 14% |
| Adjusted EBITDA Margin | 31% | 32% | -100 bps |
| Cash Flow from Operations | CAD 11.9M | ~CAD 6.5M | +82% est. |
Auxly Full Year 2025 vs. Full Year 2024
| Category | FY 2025 | FY 2024 | Change (%) |
| Net Revenue | CAD 151.5M | CAD 122.3M | 24% |
| Net Income / (Loss) | CAD 41.9M | (CAD 16.3M) | 356% |
| Gross Margin on Finished Cannabis | 54% | 46% | +800 bps |
| Gross Profit Margin | 57% | 49% | +800 bps |
| SG&A Expenses | CAD 43.4M | CAD 35.7M | 22% |
| Adjusted EBITDA | CAD 43.8M | CAD 26.7M | 64% |
| EBITDA Margin | 29% | 22% | +700 bps |
| Cash and Equivalents | CAD 32.3M | CAD 18.4M | 76% |
| Total Debt | CAD 46.3M | CAD 54.7M | -15% |
Competitor Comparison (Q4 2025)
The following table compares Auxly’s most recent quarter (Q4 calendar 2025) against key Canadian cannabis competitors. Note that Organigram’s fiscal year ends in September, so Q4 Fiscal 2025 ended September 30, 2025. Tilray figures use Q3 FY2025 (calendar Q4 2025). Cronos Group reports in USD.
| Company | Q4 2025 Net Revenue | Prior Year Same Period | Change (%) | Net Income / (Loss) | Adjusted EBITDA |
| Auxly Cannabis (XLY) | CAD 40.1M | CAD 34.6M | 16% | CAD 0.9M | CAD 12.5M |
| Cronos Group (CRON) | USD 44.5M | USD 30.3M | 47% | (USD 1.8M) | USD 0.5M |
| Organigram (OGI) | CAD 80.1M | CAD 44.7M | 79% | (CAD 38.0M) | CAD 9.8M |
| Tilray Brands (TLRY) | USD 185.8M | USD 188.3M | -1.30% | (USD 793.5M) | USD 9.0M |
Among Canadian cannabis peers, Auxly stands out for its margin leadership. Cronos posted the strongest revenue growth rate (+47%) but remains barely EBITDA-positive. Organigram delivered the largest revenue jump (+79%) driven by the Motif acquisition but remains unprofitable at the net income line.
Tilray, operating at a much larger scale, saw revenue dip slightly and was severely impacted by USD 700 million in non-cash impairment charges. Auxly’s CAD 12.5 million quarterly Adjusted EBITDA and 56% gross margin on finished cannabis represent the strongest combination of profitability and margin quality among this peer group.
How the Market Reacted?
Despite reporting Q4 2025 net revenue of CAD 40.1 million, slightly below the CAD 40.9 million analyst forecast (a miss of roughly 1.93%), the market responded with notable optimism. Auxly’s stock rose 7.69% in pre-market trading on March 26, 2026, reflecting investor focus on the strong full-year EBITDA growth, margin expansion, and improved balance sheet rather than the narrow top-line shortfall.
The stock had been trading near CAD 0.13 on TSX, within its 52-week range of CAD 0.07 to CAD 0.19, and the post-earnings move brought it closer to its 52-week highs. InvestingPro assigned Auxly a “GREAT” overall financial health score heading into the earnings period, and the results reinforced the bullish narrative with net income expected to continue growing in 2026.
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