From Revenue To Cash Flow: Here’s What Auxly’s Q2 Results Reveal

Canadian consumer packaged goods company Auxly Cannabis Group Inc. (TSX: XLY) (OTCQB: CBWTF) reported on Thursday second-quarter results.

The numbers suggest that a focus on execution and cost discipline is beginning to show up in stronger cash flow. For Auxly, the growth revolves around brands, manufacturing efficiency and taking share in a mature Canadian market.

Q2 2026 Financial Highlights

• Revenue amounted to $45.8 million compared to $38.8 million. That’s up 18% year-over-year and driven by higher volumes, better flower pricing and stronger demand for flower and pre-rolls.
• Gross profit was $25.1 million, up 24% year-over-year.
• Adjusted EBITDA rose 24% year-over-year, from $11.5 million to $14.3 million.
• Net income totaled $7.7 million, down 7% year-over-year.
• Cash flow from operations before working capital changes was $13.4 million, an increase of 31% year-over-year.
• Selling, general and administrative expenses totaled $12.5 million, or 27.4% of net revenue, compared to $10.3 million, or 26.6%, in the second quarter of fiscal 2025.

“As we head into the seasonally stronger second half, we remain focused on innovation leadership, disciplined capital allocation, and continued investment in our Leamington facility to support multi-year growth in profitability and cash flow,” Hugo Alves, CEO of Auxly, said in a press release.

The company said it plans to allocate between $10 million and $12 million of cash flow from operations to fund capital projects in 2026 and up to $30 million by the end of 2028.

Auxly has wrapped up a 14-for-1 reverse share split, consolidating every 14 existing common shares into one new share in July, to improve its capital structure and market profile.