💸 The Tape

In a cannabis industry that loves to talk about future potential, Decibel Cannabis Company is doing something increasingly rare: delivering actual results.

The Canadian branded cannabis company reported full-year 2025 financials that read like a highlight reel in a sector where highlight reels are scarce. Net revenue hit $113 million, up 22% year-over-year. Adjusted EBITDA reached $23 million, growing 29%. And free cash flow — the metric that separates real businesses from PowerPoint presentations — jumped 292% to $5.5 million. CEO Benjamin Sze summed it up with the kind of confidence that only comes from numbers that back it up: "Decibel is generating real cash flow, growing internationally and compounding value."

He's not wrong.

The AgMedica Integration: A Case Study in Discipline

A significant chunk of Decibel's 2025 story traces back to the acquisition of AgMedica Bioscience, which closed in October 2024. In its first full year under Decibel's roof, AgMedica delivered $7 million in adjusted EBITDA — well above the initial target of $4 million. That performance implies a sub-1x transaction multiple, which the company rightly calls "one of the most value-accretive acquisitions in the cannabis sector."

In an industry littered with overpriced, under-delivering M&A, getting nearly double your EBITDA target in year one is the kind of execution that earns credibility. The AgMedica facility contributed $7.6 million in Q4 revenue alone, with the vast majority — $7.4 million — coming from international sales. The facility didn't just integrate smoothly; it became a growth engine.

International: The Real Growth Story

If there's a single number that defines Decibel's trajectory, it's this: international sales grew 484% in 2025, reaching $24 million — up from just $4.1 million the prior year. That's not incremental growth. That's a business segment that barely existed 18 months ago now accounting for a meaningful share of total revenue.

The Q4 international number of $7.6 million represented 116% year-over-year growth, and that was despite a temporary disruption when Germany's Federal Institute for Drugs and Medical Devices (BfArM) halted imports after the annual approved limit was reached. Imports resumed late in Q4 after the limit was expanded, but the pause still cost Decibel volume during the quarter.

The international pipeline looks robust heading into 2026. Decibel has 14+ international customers with executed supply agreements, 40+ GACP cultivators onboarded, and 60 tons per annum of flower processing capacity currently running at just 30% utilization based on Q4 results. That utilization gap represents significant room to scale without additional capital investment — the kind of embedded operating leverage that drives margin expansion as volumes ramp.

The company is also expanding production of EU GMP extracts to meet growing demand for vapes and oils, with ongoing shipments into multiple countries. In-house microbial remediation capacity is being doubled. Management's outlook calls for "significantly high double-digit growth" in international sales through 2026 and beyond.

Domestic: Stabilizing and Refreshing

The domestic Canadian business told a more muted story in 2025. Net Canadian recreational sales were essentially flat at $88.5 million, constrained by competitive dynamics that management acknowledged openly. Q4 domestic sales of $21.3 million actually declined 3% year-over-year, though that number was distorted by the BC Liquor Distribution Branch strike, which shut down sales in the province for over a month.

Rather than pretending the domestic picture was rosy, Decibel used the year to retool its portfolio for 2026. The company launched Standard Issue, a new value brand that has already exceeded initial sell-through forecasts by 30% and climbed to a top-10 vape brand nationally based on HiFyre data since its January 2026 launch. The vape portfolio has been refreshed with liquid diamond formulations and new disposable formats under General Admission. On the flower side, four new strains have been introduced, and the company is expanding into standard pre-rolls — a segment where Decibel has been historically under-indexed.

Management is guiding for high single-digit domestic growth through 2026, a modest but realistic target that reflects the competitive realities of the Canadian recreational market while positioning the portfolio for share gains in the categories that matter.

Q4 in Focus

The fourth quarter served as a solid capstone to the year. Net revenue of $28.7 million was up 13% year-over-year. Gross margins before fair value adjustments held steady at 49% — a level that speaks to Decibel's operational efficiency and product mix. Adjusted EBITDA of $6.2 million grew 19%, and free cash flow of $3 million was up 34%. Adjusted net income hit $2.6 million, a 157% increase from the prior year quarter.

Balance Sheet Moves

Decibel started 2026 with two notable housekeeping items. In February, the company closed a new $61 million credit facility that extends debt maturities to 2030, reduces 2026 payment obligations by $5 million, and provides up to $10 million in undrawn capital. Pro forma debt-to-EBITDA is expected to remain below 2.5x — conservative by cannabis industry standards.

The company also announced the conditional sale of its cultivation property in Creston, British Columbia for $2.5 million. The divestiture has no impact on revenue outlook but is expected to save $4 million annually — the kind of quiet optimization that compounds over time.

2026 Outlook

Decibel is guiding for net revenue of $130–$135 million (roughly 18% growth at the midpoint) and adjusted EBITDA of $27–$31 million (26% growth at midpoint). Those aren't aspirational moonshots — they're grounded projections from a company that hit or exceeded its 2025 targets.

The Bottom Line

Decibel's 2025 results represent something the cannabis sector desperately needs more of: a company doing what it said it would do. Revenue growing. EBITDA expanding. Free cash flow tripling. An acquisition that over-delivered. An international business scaling rapidly with room to run. A domestic portfolio being refreshed with early traction.

In an industry still searching for its identity between hype and reality, Decibel is quietly building a case that disciplined execution and real financial performance are the most compelling story of all.

📈 Dog Walkers

$LEEF.CSE ( ▲ 14.29% ) Inks Deal With HIMALAYA

In a California cannabis market where margins can evaporate faster than a vape hit, LEEF Brands is betting that the answer lies in owning both ends of the supply chain.

The company has announced an agreement to acquire Standard Holdings, parent company of HIMALAYA VAPOR — a well-regarded California concentrates brand known for its premium, full-spectrum cartridges and natural formulations built on sun-grown cannabis. The deal is valued at approximately US$2.5 million, consisting of 13,688,000 LEEF common shares (including management incentive shares) and warrants worth US$100,000 priced at $0.25 CAD per share.

The strategic logic is clean. LEEF operates Salisbury Canyon Ranch, which the company describes as one of California's most efficient cultivation and extraction platforms, producing cannabis inputs at significant scale and low cost. HIMALAYA, meanwhile, has built a loyal consumer following across Northern California with a reputation for quality concentrates that don't cut corners. Pair the two together and the math starts to work: premium brand, lower input costs, better unit economics.

LEEF expects the combination to generate meaningful free cash flow from HIMALAYA in its first year of combined operations — a claim that, if realized, would be notable in a state where profitability has been the exception rather than the rule.

CEO Micah Anderson called the acquisition exactly the type of deal LEEF is targeting: "a premium, authentic brand with strong customer loyalty that we can scale more efficiently through our vertically integrated infrastructure." He also highlighted a five-year working relationship with HIMALAYA's team as a source of confidence in the integration. The plan involves improving margins through Salisbury Canyon Ranch's low-cost inputs while expanding distribution across California and into new markets over time.

HIMALAYA CFO Noah Farb echoed the sentiment, saying LEEF provides the platform to scale the brand's vision of authentic, full-spectrum products without compromising what's made them resonate with consumers.

At US$2.5 million, the price tag is modest — especially for a brand with genuine consumer loyalty in California's crowded concentrates market. LEEF is positioning the HIMALAYA deal as a "strategic first step" in a broader long-term M&A strategy, while emphasizing a disciplined and selective approach to future acquisitions.

For a California market still searching for sustainable business models, the LEEF-HIMALAYA combination offers a compelling thesis: grow it cheap, brand it well, and own the whole chain. Now comes the execution.

$CURLF ( ▲ 26.3% ) Opens Buyback Program

The company has acquired Safari Flower Company, an EU GMP certified cannabis cultivator and manufacturer based in Ontario, for aggregate consideration valued at $26.5 million. The deal includes $15 million in cash and 2,417,180 common shares issued at closing, plus a contingent $2 million cash payment tied to certain conditions.

Safari brings a 59,000-square-foot purpose-built indoor facility with cultivation and manufacturing capabilities that align closely with Aurora's existing operations. The strategic play is straightforward: more EU GMP certified flower to feed growing demand in Germany, Australia, Poland, and the UK — markets where regulatory barriers are high, margins are attractive, and supply remains constrained.

CEO Miguel Martin framed the acquisition as a deliberate investment in the international medical cannabis market, noting that Aurora intends to apply its plant science and operational expertise to improve yields and drive efficiencies across the expanded supply network.

The transaction is expected to deliver positive adjusted EBITDA contributions in fiscal 2027, with further upside in fiscal 2028 and beyond as the facility is fully integrated.

For Aurora, the message is clear: the international medical game is a capacity race, and they're not standing still.

🗞️ The News

📺 YouTube

MSOs Are Thriving — But Is the Rest of the Industry Falling Behind? | TTB Presented by Flowhub

What we will cover:

✅ The cannabis industry just wrapped another earnings season, and one theme continues to dominate: cash flow is king. But while the largest MSOs are posting some of their strongest cash‑flow numbers to date, the broader industry isn’t experiencing the same momentum.

In today’s Trade to Black presented by Flowhub, FundCanna CEO Adam Stettner returns to break down what’s really happening beneath the surface. Adam has spent the past several months meeting with operators across the country — public and private, small and mid‑sized — and a clear pattern is emerging. Many companies understand what a healthier cash‑flow model looks like, and some even have the right pieces in place, yet they remain hesitant to take the final steps that would strengthen their financial position.

This isn’t about blame — it’s about understanding the psychology, the pressure, and the operational realities that shape decision‑making in a still‑maturing industry. And it matters, because the health of the cannabis ecosystem is interconnected. When smaller and mid‑tier operators struggle, the ripple effects reach everyone, including the top‑performing MSOs.