Auxly Reports Second Quarter 2025 Results

Core Insights - Auxly Cannabis Group Inc. reported a record quarter with significant increases in net revenue, gross profit, and Adjusted EBITDA, indicating strong demand and operational efficiencies in the cannabis market [4][9][26] Financial Highlights - Net revenues for Q2 2025 reached $38.8 million, a 33% increase from $29.2 million in Q2 2024 [5][9] - Gross margin on finished cannabis inventory sold improved to 52% in Q2 2025 from 41% in Q2 2024, reflecting enhanced production efficiencies [6][11] - Adjusted EBITDA for Q2 2025 was $11.5 million, representing a 123% increase year-over-year [6][26] - Net income for Q2 2025 was $8.3 million, a 315% increase compared to $2.0 million in Q2 2024 [6][24] Operational Performance - The company maintained a gross profit of $22.7 million for Q2 2025, up from $15.9 million in Q2 2024, resulting in a gross profit margin of 58% [11][24] - Selling, general, and administrative expenses (SG&A) were $10.3 million in Q2 2025, an 11% increase from the previous year, driven by investments to support higher sales [13][18] - The company reported cash flow from operations of $4 million and had $17 million in cash at the end of the quarter [6][9] Market Position - Auxly is the third-largest licensed producer in Canada with a market share of 6.2% [6] - The company’s product portfolio includes a strong performance in dried flower and pre-roll cannabis products, which accounted for approximately 65% of sales in Q2 2025 [10][11] Strategic Outlook - The company plans to allocate $1.5 million to $2.5 million of cash flow from operations towards capital projects in 2025, with excess cash flow aimed at strengthening the balance sheet [30][32] - Auxly is focused on sustainable growth through innovation and operational excellence, positioning itself to capitalize on the expanding Canadian recreational cannabis market [27][28]