Auxly Cannabis Group stock: Q3 net income falls, underlying result improves

Published on 11/15/2026 at 13:36 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Auxly Cannabis Group stock faces a mixed earnings picture after third-quarter net income fell. Underlying earnings improved after prior-year special effects.

Quarterly results reshape earnings picture

Net revenue increased 24 percent to CAD 49.5 million in the third quarter.
Adjusted EBITDA rose 29 percent to CAD 15.8 million, with a 32 percent margin.
Auxly plans up to CAD 30 million of capital investment through 2028.

XLY, CA05335P7039, Illustration mit AI erstellt.

Auxly Cannabis Group reported a lower reported net income but stronger underlying earnings for the third quarter ended September 30, 2026, according to the company's Q3 2026 results release published on November 12. Net income fell 34 percent to CAD 13.6 million from CAD 20.5 million a year earlier, when the result included an after-tax gain of CAD 8.1 million from the Imperial Debenture Settlement.

Excluding that gain and fair-value adjustments on biological transformation and inventory, net income increased by CAD 4.4 million, or 70 percent, driven primarily by higher gross profit and Adjusted EBITDA. The distinction gives investors a different view of the quarter from the headline IFRS result.

Revenue and cash generation strengthen

Net revenue rose 24 percent year over year to CAD 49.5 million. Auxly attributed the increase to higher volumes across its core portfolio and improved flower pricing, partly offset by price compression in vape products.

Adjusted EBITDA increased 29 percent to CAD 15.8 million, equal to a 32 percent margin. Cash flow from operations before working capital changes rose 28 percent to CAD 14.8 million, representing 94 percent conversion from Adjusted EBITDA. Gross margin on finished cannabis inventory sold remained at 56 percent.

Capacity investment extends through 2028

Auxly plans total capital investment of up to CAD 30 million through the end of 2028 at its Leamington facility. The company expects the projects to increase production capacity by 30 percent from 2025 levels and improve cultivation and processing efficiency. Between CAD 10 million and CAD 12 million of operating cash flow is earmarked for projects in 2026, with some spending expected in the first half of 2027.

For the first nine months, revenue reached CAD 135.0 million, up 21 percent, while Adjusted EBITDA rose 36 percent to CAD 42.4 million. Cash and cash equivalents stood at CAD 51.4 million at September 30, against total debt of CAD 43.4 million.