Decibel Cannabis Co. reported $21.2 million in net revenue in the three months ended March 31, 2025 (Q1 2025), $8.8 million in gross profit, and a $1.9 million net loss.

The Alberta-based cannabis producer says its net revenue growth in the quarter was primarily a result of contributions from AgMedica Bioscience Inc., which Decibel acquired on October 28, 2024. Total sales contributed from the acquisition were $3.4 million. Decibel also owns Westleaf Labs, We Grow BC, and Thunderchild Cultivation, among other holdings in Canada. 

Decibel’s net Canadian recreational sales for the three months ended March 31, 2025, were $19 million, a decrease of 8% from the three months ended March 31, 2024. The company attributes the decline in net Canadian recreational sales to increased competition in infused pre-roll products. 

“Our first quarter demonstrates progress on multiple fronts,” said the company’s CEO, Benjamin Sze. “AgMedica has been accretive since day one, and we expect it to accelerate as our strong pipeline activates in Q2 and beyond. 

“Domestically, our renewed focus on innovation—particularly in vapes, milled flower, and ultra high potency formats—is gaining traction and helping to reverse prior market share softness. Importantly, we also reduced our payables this quarter, strengthening our balance sheet and reinforcing our focus on free cash flow and sustainable growth.” 

During the first half of 2025, the company launched additional products and undertook a marketing campaign to combat declines in these segments and grow in other categories, including: a proudly Canadian campaign, reinvesting in growing the Qwest brand presence, launching ultra high potency vapes and infused pre-rolls, new large format all-in-one disposable vapes, and milled flowers.

Decibel’s international sales for the three months ended March 31, 2025, were $2.2 million, an increase of 527% from Q1 2024. The increase in international sales was primarily attributed to the acquisition of AgMedica.

The total sales contributed from AgMedica were $3.4 million, with $2 million from international sales and the rest from domestic sales. The company says it has also pursued additional contracts related to cannabis exports to international markets and anticipates contributions from these activities in the second quarter of 2025.

The company incurred $10.4 million in excise taxes from $29.4 million in gross domestic revenue, or 35.3%. Net losses were down from $3.3 million in Q1 2024 but up from the $1 million in net income the company reported in Q4 2024.

Decibel sells: domestic branded cannabis goods sold to provincial wholesalers for distribution, with the end customers being cannabis consumers and with exports to international partners of branded cannabis goods; services related to exporting cannabis goods; and bulk cannabis exports.

The company has three dried cannabis brands: two positioned as premium brands, Qwest and Qwest Reserve, and one positioned as a core-segment brand, General Admission.

Decibel has entered into supply agreements and exported to customers in seven countries: Australia, Germany, the United Kingdom, Israel, Spain, Denmark, and Norway. The Company exports dried flower, vape cartridges, cannabis oils, and other products in both packaged and bulk formats, subject to each country’s regulations.

Decibel currently has two brands with an international presence: Qwest and General Admission.

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