News

Red or black? A roundup of cannabis financial news

Published on June 13, 2025 by Pat Bulmer

Photo: Contributed

Cannabis financial news: Rubicon revenue soars; Nextleaf holds line on costs; Canopy grows in Canada; Simply Solventless in acquisition mode

Rubicon set to grow

Coming off a solid financial quarter, a BC-based cannabis producer now has room to grow.

Delta-based Rubicon Organics announced its net revenue soared and earnings were positive in the first quarter of 2025.

Net revenue was $12.4 million, a 39.2% increase over the same quarter a year ago. The much-analyzed EBITDA (earnings before interest, taxes, depreciation and amortization) was $0.7 million for the quarter, the company’s financial report said. It was the fourth straight quarter and eighth of the last nine with positive EBITDA,

“With 39% year-over-year revenue growth and positive adjusted EBITDA, Q1 2025 highlights the strength of our operating model and financial discipline,” said interim CFO Glen Ibbott.

Rubicon’s purchase of a new facility in Hope has just been completed. The former MediPharm Labs and VIVO Cannabis site will boost production by 40%, the company says. Rubicon also uses some growers on contract.

The company expressed confidence its quality products will serve it well as provincial cannabis wholesalers cut back on the number of products they sell.

“With SKU (brand) rationalization underway across several provinces, suppliers are being evaluated on reliability and sales performance. This shift is raising the bar for market entry, making it increasingly challenging for new brands and products to secure shelf space.

“At the same time, Canadian consumers are becoming more brand-loyal, prioritizing trust and value in their purchasing decisions. We believe our award-winning brands and diverse product portfolio will continue to resonate with them,” the financial statement said.

Rubicon brands include Simply Bare Organics, 1964 Supply Co., Wildflower and Homestead Cannabis Supply.

Innovation and cost-cutting

BC-based Nextleaf Solutions is showing a cannabis company can innovate while holding the line on costs, its CEO said in the company’s latest financial report.

“From compliance to commercialization, we are proving that constraints-based innovation can happen across all areas of the business,” said Emma Andrews.

“Since Day 1 our team has turned challenges into opportunities for improved efficiency, output and strategic progress,” she said.

In the quarterly report, Nextleaf said:

— Gross revenue was $4.7 million, a 22% increase over the previous quarter.

— Gross profit totalled $1.35 million, up 42% from the same period last year.

— Net income came in at $348,789, marking a turnaround from a net loss of $1.1 million during the same quarter in 2024.

— Positive EBITDA is at $946,482 year to date.

— As of March 31, the company had total assets of $9 million and working capital of $2.7 million.

— It launched eight new products under house brand Glacial Gold, including: two infused pre-rolls, four vapes, and two bottled oils.
Looking ahead to the rest of the year, the company plans to expand facilities, make its first inroads into the Quebec market and do a Glacial Gold brand relaunch.

Canadian business up for Canopy Growth

After a year in charge of one of Canada’s major cannabis growers, the CEO of Canopy Growth thinks the company is headed in the right direction.

“Since taking over as CEO in January, we took decisive actions to accelerate growth and profitability by unifying our medical cannabis businesses globally, aligning operations with commercial focus, increasing rigor on core fundamentals and streamlining our product portfolio,” said Luc Mongeau, CEO of the Smiths Falls, Ont.-based company in quarterly and year-end financial statements.

The company still has a lot of red in its books, but it’s a lighter shade, the reports said.

“We demonstrated marked year-over-year improvement in adjusted EBITDA and cash flow … while fortifying our balance sheet,” said Judy Hong, chief financial officer. “We are committed to achieving positive adjusted EBITDA in the near-term and positive free cash flow over time as we accelerate growth across our global medical cannabis businesses, improve margins in Canada adult-use cannabis and further reduce costs.”

Business was down internationally, but up in Canada.

“Net revenue in Q4 FY (fiscal year) 2025 decreased 11% compared to the fourth quarter ended March 31, 2024, primarily due to decreased international markets cannabis and Storz & Bickel (vapourizers) net revenue, offset by higher Canadian cannabis net revenue,” the report said.

Total debt decreased to $304 million as of March 31 compared to $597 million on March 31, 2024

In Canada:

— Cannabis net revenue was $40 million in the latest quarter, representing an increase of 4% compared to the same quarter a year ago. The increase was driven by a 13% rise in medical cannabis net revenue, partially offset by a 3% decline in recreational cannabis net revenue.

— The decline in recreational cannabis revenues was primarily due to lower flower and pre-roll sales, and partially offset by growth in sales of infused pre-rolls.

A previous financial report from Canopy Growth sparked the threat of class-action lawsuits against the company, which was accused of misleading investors about cost-cutting measures.

Acquisitions boost Simply Solventless

A Calgary-based cannabis company boasted about a year of acquisitions as it presented its 2024 year-end financial statements.

Simply Solventless Concentrates (SSC) made three major acquisitions in 2024, the financial report said, citing: the Lamplighter brand; licenced producer CannMart Inc.; and preroll co-manufacturer ANC Inc.

In early 2025, SSC closed a deal to buy Delta 9 Bio-Tech, a licenced producer with a 100,000 square-foot-facility in Winnipeg that it renamed Humble Grow.

Financially, the numbers were mixed:

— SSC generated gross revenue of $20.5 million, an increase of 194% over the prior year.

— the company’s net revenue was $13.7 million, up 121% over the prior year.

— Gross profit was $1.2 million, a decrease of 66% from the prior year.

— Adjusted EBITDA was minus $3.8 million, a decrease of 269% from the previous year.

— Working capital was $1.6 million, a decrease of 56% from a year earlier.

— SSC’s total assets increased from $10.2 million at the end of 2023 to $38.6 million on Dec. 31, 2024.

SSC’s first-quarter results for 2025 have been delayed to June 20.

In May, Calgary-based CanadaBis Capital (also known as Stigma Grow) said it had terminated an agreement to be bought out by SSC.