Auxly Cannabis reports record Q2 2026 revenue, EBITDA

Auxly Cannabis Group (TSX: XLY ) held its second-quarter earnings conference call on Thursday.

Below is the complete transcript from the call.

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For comprehensive financial data and transcripts, visit The full earnings call is available at Summary Auxly Cannabis Group Inc reported record Q2 2026 financial results with net revenue reaching $45.8 million, an 18% year-over-year increase, and adjusted EBITDA of $14.3 million, a 24% increase year-over-year.

The company's gross margin on finished cannabis inventory increased to 55%, and cash flow from operations before working capital changes was $13.4 million, indicating a strong 94% conversion from adjusted EBITDA.

Strategic initiatives include a 14-to-1 share consolidation and ongoing investments in distribution, innovation, and capacity expansion, particularly at Auxly Leamington, to support continued revenue growth and operational efficiency.

Future outlook remains optimistic with plans for a $30 million capital program over three years to increase yield by 30% at Auxly Leamington, and continued focus on the Canadian market while keeping an eye on potential international opportunities.

Management highlighted strong demand for their core portfolio and innovations, with new product launches like the Galactic Jack sativa cultivar receiving positive consumer feedback, and maintaining a disciplined capital allocation strategy including share repurchases under the NCIB.

Full Transcript OPERATOR Good morning, ladies and gentlemen, and welcome to the Auxly Cannabis Group Inc Q2 2026 Financial Results Conference Call.

At this time, all lines are in listen-only mode.

Following the presentation, we will conduct a question-and-answer session.

If at any time during this call you require immediate assistance, please press star zero for the operator.

This call is being recorded on Thursday, August 13, 2026.

I would now like to turn the conference over to Mr.

Hugo Alves, CEO.

Please go ahead.

Hugo Alves, Chief Executive Officer Thank you.

Good morning.

I'm Hugo Alves, Auxly's Co—Founder and Chief Executive Officer.

I'd like to welcome you all to Auxly Cannabis Group Inc's Q2 2026 conference call and webcast.

Joining me on this call today are Travis Wong, our Chief Financial Officer, and Marc Charbin, our Head of Investor Relations.

Today I'll share highlights from the quarter and then we'll open up the call to questions from analysts and answer some questions that have come through the Investor Relations inbox over the last few days.

Before we begin, I'd like to remind you that our remarks may contain forward-looking information and actual results could differ materially.

Forward-looking information is subject to many risks and uncertainties.

Certain factors or assumptions applied in the forward-looking information can be found in our latest annual information form and management discussion and analysis.

These documents are available on our website and at sedarplus.ca.

More generally, if you have questions once the call is complete, please reach out to our Investor Relations.

Our contact information can be found at the end of our earnings press release.

Moving on to our financial results.

Our Q2 2026 financial results represented a quarterly record in net revenue, adjusted EBITDA, and cash flow from operations.

Net revenue reached 45.8 million, an increase of 18% year over year.

Gross margin on finished cannabis inventory sold increased to 55%, up from 52% in Q2 2025.

Adjusted EBITDA was $14.3 million, an increase of 24% year over year, representing an EBITDA margin of 31%, and cash flow from operations before working capital changes reached 13.4 million, an increase of 31% year over year and representing a 94% conversion from adjusted EBITDA.

Our net revenue growth is driven by continued strong demand for our core portfolio, led by Back 40 strength in flower, pre—rolls, and vapes.

Our gross margin reflects continuing improvements across our operating footprint, strategic procurement initiatives, and a favorable product mix.

And we believe that the operating leverage we are delivering is structural.