# CBWTF earnings call intelligence

LOPJLB CallCard / temporal rollup · freemium · [stock page](https://www.lopjlb.com/stock/CBWTF) · [Earnings tab](https://www.lopjlb.com/stock/CBWTF?tab=earnings)

Updated: 2026-08-15T06:55:40

Quarters analyzed: 8

## Cross-quarter narrative

Across the earnings calls, Auxly's narrative shifted from focusing on market share gains and product launches to emphasizing cost cuts, automation, and margin expansion. Initially, the company faced challenges such as automation delays, supply-chain disruptions, and pricing pressure. However, over time, Auxly made progress in improving its margins, investing in automation, and streamlining its portfolio. The company achieved its first positive adjusted EBITDA in Q1 2023 and has since sustained it. By 2026, Auxly reported record net revenue and adjusted EBITDA, with a strong focus on the Canadian market and a disciplined framework for growth.

## Latest CallCard · Q2

Auxly Cannabis Q2 2026: record net revenue $45.8M (+18% YoY), adj. EBITDA $14.3M (+24%), 31% margin, 94% cash conversion; $30M 3-year Leamington yield expansion; NCIB active; focus on Canadian market.

**Guidance:** maintained — Management reiterated unchanged 2026 outlook: net revenue growth above market rates, continued investment in distribution, innovation, Leamington capacity; $10-12M capex for 2026 part of $30M 3-year program.

**Tone:** mgmt 0.8 · Q&A pressure 0.2 · divergence 0.6

Prepared remarks highlight record quarterly results, strong demand, structural margin improvements, unchanged outlook, share consolidation, and NCIB activity, reflecting high confidence.

### Demand visibility

Strong demand for core portfolio, especially Back Forty flower, pre-rolls, vapes; new cultivar Galactic Jack early response tremendous.

Net revenue growth driven by Back Forty strength; Galactic Jack launched mid-June won 1.4k distribution points; South Point top-40 flower brand nationally with 2 SKUs; Back Forty pre-rolls Canada's favorite; additional innovations planned for back half.

### Margins / costs

Gross margin 55% (+300bps YoY) from structural improvements: higher yields, manufacturing efficiencies, strategic procurement (e.g., vape API). Adj. EBITDA margin 31% sustained for 5 quarters; SG&A growth targeted at revenue growth rate.

Gross margin improvement from operating footprint, strategic procurement, favorable mix. EBITDA margin driven by above-industry revenue growth, structural gross margin gains (cultivation yields, manufacturing at Leamington and Charlottetown, procurement savings), and SG&A discipline. Cash conversion 94%.

### Capital allocation

Disciplined framework: prioritize organic growth capex ($30M/3yr Leamington yield expansion), selective M&A, NCIB share repurchases ($5.7M in Q2 for 2.6M shares); 14:1 share consolidation completed July.

Capital allocation priorities: 1) organic growth investments (Leamington yield expansion ~$30M over 3 years, $10-12M in 2026 funded from cash flow), 2) selective inorganic opportunities, 3) NCIB repurchases (active, capacity remains, attractive at current prices). Share consolidation completed July. Committed to strong balance sheet, funding from cash flow without equity issuance.

### Milestones

- **Leamington yield expansion** [on_track]: Additional post-harvest capabilities, new grow zone, HVAC infrastructure; yield improvements expected throughout 2027-2028; $30M capex over 3 years targeting 30% yield increase over 2025 levels.
- **Galactic Jack launch** [delivered]: New sativa cultivar under Back Forty launched mid-June 2026; early consumer response tremendous; 1.4k distribution points won.
- **South Point new strain** [on_track]: South Point already top-40 flower brand nationally with 2 SKUs; adding new strain later in 2026.
- **Back Forty pre-roll innovation** [on_track]: Back Forty pre-rolls Canada's favorite pre-roll; imminent innovation launch.
- **Share consolidation** [delivered]

## Quarter one-liners

- **2026 Q2:** Auxly Cannabis Q2 2026: record net revenue $45.8M (+18% YoY), adj. EBITDA $14.3M (+24%), 31% margin, 94% cash conversion; $30M 3-year Leamington yield expansion; NCIB active; focus on Canadian market.
- **2023 Q1:** Auxly aims for sustainable profitability in 2023 with a 15% revenue lift, margin expansion to 35‑40%, cost cuts and new automation, reporting first‑time positive adjusted EBITDA in Q1.
- **2022 Q4:** Auxly reported Q4 2022 revenue of C$24.7M, highlighted cost cuts, automation gains and brand growth in dried flower, pre‑rolls and vapes, while noting competitive pricing pressure and maintaining a conservative 15% sales‑growth outlook.
- **2022 Q3:** Q3 2022 saw lower than expected revenue due to reduced orders from major customers and a hurricane shutdown, but management highlighted product innovation, Leamington capacity upgrades and a goal to return to adjusted EBITDA positivity in Q4.
- **2022 Q2:** Auxly posted 31% YoY revenue growth, lifted gross margin to 36% and adjusted EBITDA up 37% QoQ, while noting vape price pressure, share loss and capacity constraints, and outlining Leamington efficiencies and new product launches.
- **2022 Q1:** Auxly saw 147% YoY revenue growth but a 23% QoQ dip due to seasonality, resolved supply‑chain hiccups, and is pushing new SKUs, automation and Quebec expansion while monitoring pricing pressure and regulatory changes.
- **2021 Q4:** Auxly posted 79% revenue growth, expanded national market share to 7.4%, launched 51 SKUs, but missed adjusted EBITDA profitability and flagged automation and supply‑chain delays that push its 2022 profit target to later in the year.
- **2021 Q3:** Auxly reports record Q3 with market share rising to 5.6% (7.3% in Oct), #1 in 2.0, but automation delays pressure margins and EBITDA target.

## Theme arcs

- **Margin Expansion** (improving): Auxly's margins improved over time due to cost cuts, automation, and strategic procurement.
- **Automation and Efficiency** (improving): The company invested in automation, which led to improved manufacturing efficiencies and higher yields.
- **Pricing Pressure** (deteriorating): Auxly faced competitive pricing pressure, especially in the vape segment, which eroded its margins and market share.
- **Regulatory Environment** (stable): The company monitored regulatory changes and their potential impact on the market, but no significant changes were reported.
- **Product Innovation** (improving): Auxly launched new products, such as the Galactic Jack cultivar, which received a tremendous early response.
- **Cost Control** (improving): The company focused on reducing SG&A and maintaining a disciplined framework for growth.
- **Market Share** (stable): Auxly's market share remained relatively stable, with a focus on the Canadian market.
- **Capacity Expansion** (improving): The company invested in expanding its capacity, including a $30M 3-year Leamington yield expansion.
- **Share Repurchases** (new): Auxly initiated a normal course issuer bid (NCIB) and repurchased shares, including $5.7M in Q2 2026.
- **Share Consolidation** (new): The company completed a 14:1 share consolidation in July 2026.

## Fear persistence

- **Supply Chain** [resolved]: Auxly resolved its supply chain issues over time.
- **Pricing Pressure** [recurring]: The company faced recurring pricing pressure, especially in the vape segment.
- **Seasonality** [recurring]: Auxly faced recurring seasonality issues, with Q1 sales traditionally being the weakest.
- **Margin Compression** [recurring]: The company faced recurring margin compression due to competitive pricing pressure.
- **Customer Concentration** [recurring]: Auxly had a high customer concentration, with reduced orders from major customers affecting its revenue.
- **Vape Market Pressure** [recurring]: The company faced recurring pressure in the vape market, with flat sales and price compression eroding its share.
- **Impairments** [resolved]: Auxly resolved its impairment issues, with no significant write-offs reported in recent quarters.
- **Capacity Ramp-up Risk** [resolved]: The company resolved its capacity ramp-up risk, with improved manufacturing efficiencies and higher yields.
- **Regulatory Access** [resolved]: Auxly resolved its regulatory access issues, with no significant restrictions reported in recent quarters.
- **Geographic Concentration** [resolved]: The company resolved its geographic concentration issue, with a focus on the Canadian market.

## Guidance path

2021 Q3:vague → 2021 Q4:maintained → 2022 Q1:vague → 2022 Q2:maintained → 2022 Q3:maintained → 2022 Q4:maintained → 2023 Q1:maintained → 2026 Q2:maintained

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Research context only. Not personalized investment advice.

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