News

Cannabis market showing growth, says Auxly

Published on August 22, 2025 by Pat Bulmer

Photo: Contributed

A growing Canadian cannabis market has the brass at Toronto-based Auxly Cannabis Group feeling optimistic about the immediate future.

The company released three- and six-month financial results, which included records in several financial categories.

“Net revenue increased 33% year-over-year through increased demand for our products, deeper distribution across the country, increasing production volumes and higher pricing,” said CEO Hugo Alves in a news release.

Revenues were comprised of approximately 65% in sales of dried flower and pre-rolls, with the remainder from oils and Cannabis 2.0 product sales (vaping, edibles, drinks).

Approximately 75% of cannabis sales were made in British Columbia, Alberta and Ontario.

The company says the market is showing some strengths: “We expect the Canadian  recreational cannabis market will continue to provide tailwinds in the near-term from increasing social acceptability, capture of market share from the illicit market, the reduction of

supply from shuttered capacity and the divergence of existing supply to international markets.

Due to these market factors … we expect continued growth in net revenue in the second half of 2025.”

Auxly says it will spend $2.5-$2.5 million to upgrade facilities in Leamington, Ont., and Charlottetown, PEI.

The company will also be looking for export opportunities.

At the end of the quarter, according to the financial statement:

— Auxly was the third largest Canadian licensed producer with market share of 6.2%;

— Back Forty exited the quarter as the No. 1 cannabis brand in Canada

— Liquid Imagination and Fire Breath 28g were the top two best-selling brands nationwide

— Auxly vapes held 12 of the 15 top-selling spots in Canada

— The company had the No. 1 non-infused pre-roll brand in Ontario.

Financial results included:

— Net revenues of $38.8 million, an increase of 33% year-over-year

— Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $11.6 million, an increase of 123% year-over-year

— Net income of $8.3 million, an increase of 315% year-over-year

— Cash at quarter end totalled $17 million.

— Auxly realized a gross profit of $22.7 million and $41.4 million for the three and six months ended June 30.

An investment in the company from Imperial Brands was touted as a sign of Auxly’s long-term stability.