Decibel Posts Record Q2 Revenue and Raises Full-Year Outlook

Decibel Cannabis Company Inc. reported record second-quarter results on August 20, 2026, posting net revenue of $35.6 million (up 19% year over year) and raising its full-year 2026 outlook while announcing a 15-for-1 share consolidation and a planned share buyback. The Calgary-based branded cannabis company’s international sales jumped 72% to a record $10.6 million.

The company now expects full-year 2026 net revenue of $132 million to $137 million, up from its previously issued range of $130 million to $135 million, and adjusted EBITDA of $28 million to $32 million, up from $27 million to $31 million, according to its Q2 2026 results announcement.

“Q2 was a record quarter across the business, with revenues up 19% to $36 million, international sales up 72% to a record $10.6 million and record adjusted EBITDA and free cash flow,” Chief Executive Officer Benjamin Sze said in the release. “This performance reflects the momentum we highlighted last quarter translating into results and gives us the confidence to raise our full year outlook, move forward with the share consolidation and work towards our anticipated NCIB.”

Adjusted EBITDA, a non-GAAP measure, reached a record $7.8 million, up 24% from a year earlier, and free cash flow hit a record $4.9 million, up 122%. Net income and comprehensive income for the quarter came in at $4.2 million, compared with $1.6 million in the second quarter of 2025. Gross margin before fair value adjustments improved to 51%, from 47% a year ago.

Domestic sales grew 6% year over year to $25 million, driven by the newer Standard Issue brand and a refreshed General Admission portfolio. Decibel’s overall Canadian market share held at 4.3% in the quarter based on HiFyre data, with General Admission remaining the top infused pre-roll brand and Decibel ranking as the third-largest pre-roll licensed producer.

International Sales Drove the Quarter’s Growth

The 72% surge in international revenue reflects improved permit timelines in Germany, where Decibel received reorders for GMP-extracted product during the quarter. The company also added multiple SKUs of finished vapes for customers in the UK and reported more than 16 international customers and over 50 GACP cultivators under executed supply agreements. Its flower processing capacity runs at 60 tons per annum, at roughly 34% utilization based on Q2 2026 results, and the company said AgMedica’s EU GMP certified platform continues to perform above the original underwriting case from the acquisition.

Share Consolidation and Buyback Plan

Shareholders approved the consolidation framework at the company’s annual and special meeting on December 11, 2025. Decibel is now arranging to consolidate its shares on a basis of one post-consolidation share for every 15 pre-consolidation shares, cutting the outstanding count from 577,043,267 shares to approximately 38,469,551. Fractional shares will be rounded down, and the company will keep its name and trading symbol under a new CUSIP.

The board said the consolidation is intended to lift the share price, broaden the investor base, and improve trading liquidity. Decibel is also considering a normal course issuer bid (a buyback program) with a target timeline following the Q2 release, and said it will update the market once details are finalized.

Board Leadership Change

Shawn Dym, the company’s chairman, has been appointed executive chairman effective with the announcement, working more closely with management on capital allocation, M&A, and long-term strategic priorities. Nadia Vattovaz will serve as lead independent director, while Sze continues to lead day-to-day operations as CEO.

By the Numbers

• Net revenue: $35.6 million, up 19% year over year (record)
• International sales: $10.6 million, up 72% (record)
• Domestic sales: $25 million, up 6%
• Adjusted EBITDA: $7.8 million, up 24% (record; non-GAAP)
• Free cash flow: $4.9 million, up 122% (record; non-GAAP)
• Adjusted net income: $4.2 million, up 23% (non-GAAP)
• Gross margin before fair value adjustments: 51%, versus 47% in Q2 2025
• Full-year 2026 revenue guidance: $132 million–$137 million, raised from $130 million–$135 million
• Full-year 2026 adjusted EBITDA guidance: $28 million–$32 million, raised from $27 million–$31 million
• Share consolidation: 15-for-1, reducing shares outstanding from 577,043,267 to approximately 38,469,551

The Quarter Builds on a Strong First Half

The Q2 print follows a first quarter in which Decibel reported net revenue of $29.8 million, up 41% year over year, with international sales tripling to $9.6 million and adjusted EBITDA doubling to $6.9 million, according to its Q1 2026 results. At that time the company guided Q2 revenue of $33 million to $35 million; the $35.6 million actual landed above the top of that range.

The first quarter also saw Decibel close a $61 million credit facility with ATB Financial and ATB Cormark Capital Markets, extending debt maturities to 2030, and announce a conditional agreement to sell its Creston, British Columbia cultivation property for $2.5 million. The stronger balance sheet from that refinancing is the backdrop Sze pointed to in framing the buyback and consolidation as capital-allocation moves.

Share consolidations have become a recurring tool among cannabis companies looking to make their stock more attractive to institutional investors. IM Cannabis recently moved toward a 30-for-1 consolidation to defend its Nasdaq listing, though Decibel’s stated rationale centers on market image and liquidity rather than listing compliance.

What Happens Next

Post-consolidation shares are expected to begin trading on or about September 1, 2026, subject to final acceptance from the TSX Venture Exchange. Registered shareholders will receive a letter of transmittal from Odyssey Trust Company, the company’s registrar and transfer agent. The consolidation remains subject to final TSXV approval, and the company said it will provide an update on the anticipated normal course issuer bid once the details are finalized.

Decibel’s condensed consolidated interim financial statements for the three and six months ended June 30, 2026, and the related management’s discussion and analysis are available on SEDAR+ under the company’s profile. The adjusted EBITDA, adjusted net income, and free cash flow figures cited in the release are non-GAAP measures that are not defined under IFRS and may not be comparable to data presented by other licensed producers; reconciliations appear in the company’s cautionary statements.