Q1 2026 Auxly Cannabis Group Inc Earnings Call Transcript
Key Points
- Auxly Cannabis Group Inc (CBWTF) reported a 22% year-over-year increase in net revenue, reaching $39.8 million, significantly outpacing the industry growth of approximately 2%.
- The company achieved a gross margin of 55% on finished cannabis inventory sold, up from 48% in Q1 2025, indicating improved cost efficiency.
- Adjusted EBITDA increased by 65% year-over-year to $12.3 million, representing an EBITDA margin of 31%.
- Cash flow from operations before working capital changes increased by 102% year-over-year, reaching $11.3 million, with a 92% conversion from adjusted EBITDA.
- Auxly Cannabis Group Inc (CBWTF) ended the quarter with over $42 million in cash and $45 million in debt, marking the strongest balance sheet position in years.
- The company experienced price compression on vape products, which partially offset the benefits of higher incremental volumes and improved pricing in the flower portfolio.
- Despite strong financial performance, Auxly Cannabis Group Inc (CBWTF) did not win the bid for the assets of Irecan, another Canadian LP, which could have provided additional growth opportunities.
- The company is not forecasting material international revenue in 2026, indicating limited immediate growth from international markets.
- Auxly Cannabis Group Inc (CBWTF) faces a seasonally slow first calendar quarter, typically resulting in a sequential decline in net revenue, although this was less than 1% in Q1 2026.
- The company must continue to navigate the dynamic pricing and supply conditions in the Canadian cannabis market, which can impact profitability and growth.
Q1 2026 Financial Results Conference Call.
At this time, all lines in a listen-only mode.
(Operator Instructions)
This call is being recorded on Thursday, May 14, 2026. I would now like to turn the conference over to Hugo Alves, CEO. Please go ahead.
Thank you, operator. Hello. Good morning. I'm Hugo Alves, Auxly's co-founder and Chief Executive Officer.
I'd like to welcome all of you to Auxly Cannabis Group's Q1 2026 conference call and webcast.
Joining me on the conference call today are Travis Wong, our Chief Financial Officer and Marc Charbin, our Head of investor relations.
Today, I'll share key takeaways from the quarter. And then we'll open the call up to questions from analysts and answer some questions that have come through our Investor Relations inbox over the last few days.
Before we begin, I'd like to remind you that our remarks may contain forward-looking information, and actual results could differ materially.
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