Overview

* Decibel Q3 net revenue rises 37% yr/yr, driven by AgMedica's international sales

* Adjusted EPS for Q3 beats analyst expectations

* Adjusted EBITDA for Q3 increases 40% yr/yr, driven by international and Canadian sales growth

Outlook

* Decibel anticipates 2025 net revenue of approximately C$115 mln

* Company expects 2025 Adjusted EBITDA of about C$24 mln

* Decibel revises guidance due to regulatory and distribution challenges

Result Drivers

* INTERNATIONAL SALES - AgMedica's contributions accelerated international sales, totaling C$7.8 mln

* CANADIAN SALES INITIATIVES - Modest growth in Canadian recreational sales driven by new marketing campaigns and product launches

* GROSS MARGIN DECLINE - Lower gross margin due to higher testing costs and product types in international sales

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 C$32.90

Revenue mln

Q3 Beat C$0.01 C$0.007

Adjusted (3

EPS Analysts

)

Q3 C$3.80

Adjusted mln

Net

Income

Q3 C$7.30

Adjusted mln

EBITDA

Q3 Free C$1.50

Cash mln

Flow

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the pharmaceuticals peer group is "buy"

* Wall Street's median 12-month price target for Decibel Cannabis Company Inc ( DBCCF ) is C$0.25, about 48% above its November 18 closing price of C$0.13

* The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 4 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)