Hugo Alves
CEO & Director
Good morning, shareholders, and welcome to Auxly’s Annual General and Special Meeting of Shareholders. Thank you all for joining us today.
Before we move to the formal portion of the meeting, I want to take a few moments to review the progress we’ve made since this time last year and to share our outlook for the balance of 2026 and beyond.
2025 was a transformational year for Auxly. One week after last year’s AGM, we closed the balance sheet restructuring transactions, whereby Auxly amended and extended our BMO-led credit facility and also settled all amounts owing to Imperial Brands. These transactions significantly alleviated balance sheet risk for investors and paved the way for Auxly to begin considering a much wider range of capital allocation alternatives.
Back Forty exited 2024 as the #1 cannabis brand in Canada and remained Canada’s #1 brand throughout 2025, deepening its leadership throughout the course of the year. Our high-quality and competitively priced SKUs continued to see high uptake with everyday consumers, and our recent innovations are performing exceptionally well.
Innovative genetics and constantly improving quality of product coming out of Auxly Leamington also allowed us to launch a new brand, South Point, which gives us a strong competitor at a more premium price point. This success in producing quality products at scale at both our Leamington and Charlottetown facilities resulted in Auxly delivering 24% net revenue growth in 2025. And our organization-wide commitment to financial discipline resulted in significant operating leverage with adjusted EBITDA up 64%, reaching $42 million for the year. This EBITDA generated over $38 million in cash flow from operations before working capital changes.
Our
