Decibel Reports Second Quarter 2026 Results: Revenue Grows 19% YoY to Record $36 Million, Raises Full Year Outlook, Announces 15:1 Share Consolidation and Anticipated Normal Course Issuer Bid

CALGARY, AB, Aug. 20, 2026 /PRNewswire/ -- Decibel Cannabis Company Inc. (the "Company" or "Decibel") (TSXV: DB) (OTCQB: DBCCF), a leading Canadian branded cannabis company with a growing international platform, today announced its financial results for the three and six month periods ended June 30, 2026.

"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. 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. With a stronger balance sheet and records across nearly every metric, we're heading into the second half of the year from a position of strength." Benjamin Sze – Chief Executive Officer.

Q2 2026 Highlights

• Record Net Revenue of $35.6 million, growth of 19% year over year
• Record International Sales of $10.6 million, growth of 72% year over year
• Record Adjusted EBITDA⁽¹⁾ of $7.8 million, growth of 24% year over year
• Record Free Cash Flow⁽¹⁾ of $4.9 million, growth of 122% year over year

FY 2026 Outlook⁽²⁾

Decibel is increasing its previously issued 2026 full year guidance:

• Net Revenue of $132 to $137 million, from the previously issued range of $130 to $135 million
• Adjusted EBITDA of $28 to $32 million, from the previously issued range of $27 to $31 million

International Update

Decibel's international sales grew 72% year over year to $10.6 million, realizing the initial impacts of the anticipated growth from improved German permit timelines. Decibel expects to experience growth through the balance of the year as the Company converts its existing backlog to revenue. AgMedica's EU GMP certified platform continues to perform well above the original underwriting case, validating the international strategy underpinning the acquisition. We continue to believe international sales are positioned for significantly high double-digit growth through 2026, supported by the following Q2 2026 milestones:

• Received reorders for GMP-extracted product to be delivered into the Germany market
• Added multiple SKU's of finished vapes for customers in the UK market
• 16+ international customers with executed supply agreements
• 50+ GACP cultivators onboarded with executed supply agreements
• 60 tons per annum of flower processing capacity at ~34% utilization based on Q2 2026 results
• Expanding production of EU GMP extracts to meet growing demand, allowing for ease of access into vapes and oils, with ongoing shipments into multiple countries

Domestic Update

Decibel's domestic sales continued to grow at 6% year over year, driven by strong continued performance of the new Standard Issue brand and the strength of General Admission's refreshed product portfolio. Management continues to see opportunities to expand the Company's offering across all three core brands and increase overall market coverage. The Company reaffirms expectations that domestic sales are positioned for high single-digit growth through 2026, supported by the following Q2 2026 milestones:

• Overall market share in Q2 2026 stayed relatively flat at 4.3% based on HiFyre data
• General Admission remains the #1 Infused Pre-Roll brand and Decibel is the #3 pre-roll LP overall, heading into peak seasonality for the segment
• Standard Issue has continued to grow since launch, now 6th overall in the vape category (2.9% share) and 7th overall in Infused Pre-Roll (2.8%) share based on HiFyre data
• Decibel remains the #4 LP in the vape category overall with YTD market share growth of 0.9pts. General Admission holds the #2 position in the fastest growing segments of liquid diamonds in both 510 and AIO's, while Standard Issue holds the #2 position in the distillate 1g 510 segment

Share Consolidation

As previously approved by the Company's shareholders at the Company's last annual and special meeting held on December 11, 2025, the Company is announcing that it is arranging a share consolidation of its issued and outstanding share capital on a basis of one (1) post-consolidated common share in the capital of the Company (each, a "Common Share") for each fifteen (15) pre-consolidated Common Shares (the "Share Consolidation"). No fractional Common Shares will be issued, with any fraction of a Common Share being rounded down to the nearest whole number.

The board of directors of the Company (the "Board") believes that the Share Consolidation will increase the share price, thereby enhancing the Company's market image and making its Common Shares more attractive to institutional and other investors. A higher Common Share price is also expected to reduce volatility and improve trading liquidity. In addition, the Board anticipates that the Share Consolidation will strengthen the Company's ability to attract and retain employees and service providers. Overall, the Share Consolidation is intended to build market confidence, broaden the investor base, and reflects consistent feedback received from shareholders.

As a result of the Share Consolidation the number of issued and outstanding Common Shares of the Company will be reduced from 577,043,267 pre-consolidation Common Shares to approximately 38,469,551 post-consolidation Common Shares, subject to adjustments for rounding.

The Company's registered shareholders holding their Common Shares in certificated form or whose Common Shares are represented by a direct registration advice ("DRS") statement will receive a letter of transmittal from Odyssey Trust Company ("Odyssey"), the Company's registrar and transfer agent, in respect to the Share Consolidation, which each registered shareholder will need to sign and complete. The letter of transmittal will contain instructions to such registered shareholders on how to surrender the certificates representing their pre-consolidation Common Shares and authorize Odyssey to issue a DRS representing their post-consolidation Common Shares. A copy of the letter of transmittal will be available under the Company's profile on SEDAR+ (www.sedarplus.ca) and additional copies of the letter of transmittal may be obtained from Odyssey at the office listed below. Any questions should be directed Odyssey by e-mail to [email protected].

Non-registered shareholders who hold their Common Shares through an intermediary such as a bank, trust company, securities dealer or broker should note that these intermediaries may have their own procedures for processing the Share Consolidation which may differ from those described above for registered shareholders. Non-registered shareholders who have questions should contact their intermediary for more information. The Common Shares will have a new CUSIP number and the trading of the post-consolidation Common Shares is expected to occur on or about September 1, 2026. The name of the Company and its trading symbol will not change. The Share Consolidation is subject to final acceptance from the TSX Venture Exchange ("TSXV").

Anticipated Normal Course Issuer Bid

The Company is also considering commencing a Normal Course Issuer Bid (NCIB) program, with a target timeline following the release of its second quarter 2026 financial results and will provide an update to the market once the details are finalized. The Company views this as a constructive use of capital given the Company's financial position and following the completion of the Share Consolidation, the Company intends to continue to look for ways to generate maximum returns for the Company's shareholders. 

Board Leadership Update

Decibel also announces that Shawn Dym, the Company's Chairman of the Board, has been appointed Executive Chairman of the Board effective as of the date hereof. In this expanded role, Mr. Dym will work more closely with management on capital allocation, M&A, and other long-term strategic priorities, complementing Benajmin Sze's continued leadership of Decibel's day-to-day operations as CEO. Nadia Vattovaz will serve as Lead Independent Director.

Second Quarter Highlights

• Net Revenue was $35.6 million, a year over year increase of 19%. Net revenue growth was driven by continued growth in international demand and continued success with Standard Issue launches.
• Domestic Sales were $25 million, a year over year increase of 6%. The Company saw strong traction with its new Standard Issue brand driving further growth during the quarter.
• International Sales were $10.6 million, a year over year increase of 72%. The increase in international sales was driven by strong volume growth and high demand for the Company's flower and extract products.
• Gross Margin Before Fair Value Adjustments was 51% in the second quarter of 2026, compared to 47% in the second quarter of 2025.
• Record Adjusted EBITDA⁽¹⁾ of $7.8 million, a year over year increase of 24%. The increase in Adjusted EBITDA for the quarter was primarily driven by international sales.
• Free Cash Flow⁽¹⁾ of 4.9 million, a year over year increase of 122%.
• Adjusted Net Income⁽¹⁾ of $4.2 million, a year over year increase of 23%. 

Summary Highlights

Decibel's condensed consolidated interim financial statements for the three and six months ended June 30, 2026 and 2025 (the "Financial Statements") and related management's discussion and analysis are available on SEDAR+ under the Company's profile at www.sedarplus.ca.

The Company will host a live conference call to discuss the results at 10:00 a.m. MST today. To instantly join the conference call by phone, please use the following link to easily register close to the call start time. After registering, the system will call you instantly and connect you into the conference call automatically:

https://registrations.events/easyconnect/6188739/recImCiv2oO7MWwb0/

Alternatively, you may dial in to the conference call to be connected by an Operator by calling 1-647-932-3411 for local participants, 1-800-715-9871 for Canadian participants, or 1-(888)-880-3330 for U.S. participants, referencing conference ID 6188739.

About Decibel

Decibel is a consumer-focused cannabis company with a strong foundation in the Canadian adult-use market, built on leading brands including General Admission, Qwest and Standard Issue. The Company focuses on disciplined innovation, consistent product quality and strong brand execution. Alongside its leadership position in Canada, Decibel is a significant and growing participant in international cannabis markets. Decibel operates a processing and manufacturing facility in Calgary, Alberta, a cultivation facility in Battleford, Saskatchewan, and an EU GMP licensed cultivation and processing facility in Chatham, Ontario.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Cautionary Statements

Non-GAAP Measures

This news release contains certain financial performance measures, namely Adjusted EBITDA, Adjusted Net Income and Free Cash Flow, that are not recognized or defined under IFRS (termed "Non-GAAP Measures"). As a result, this data may not be comparable to data presented by other licensed producers and cannabis companies. For an explanation of these measures to related comparable financial information presented in the Financial Statements prepared in accordance with IFRS, refer to the discussion below. The Company believes that these Non-GAAP Measures are useful indicators of operating performance and are specifically used by management to assess the financial and operational performance of the Company. Accordingly, these Non-GAAP Measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

Adjusted EBITDA is a Non-GAAP Measure that is calculated as net income (loss) and comprehensive income (loss) excluding unrealized gain on changes in fair value of biological assets, change in fair value of biological assets realized through inventory sold, depreciation and amortization expense, share-based compensation, other income, finance costs, foreign exchange loss, non-cash production costs and severance payments. Non-cash production costs relate to amortization expense allocations included in production costs. This Non-GAAP Measure should be considered together with other financial information prepared in accordance with IFRS to enable investors to evaluate Decibel's operating results, underlying performance and prospects in a manner similar to Decibel's management.

Adjusted Net Income is a Non-GAAP Measure that is calculated as net income (loss) and comprehensive income (loss) excluding unrealized gain on changes in fair value of biological assets and change in fair value of biological assets realized through inventory sold. 

These measures are intended to provide a proxy for the Company's net income (loss) and comprehensive income (loss) and are used to compare Decibel to its competitors and derive expectations of future financial performance of the Company and should be considered together with other financial information prepared in accordance with IFRS to enable investors to evaluate Decibel's operating results, underlying performance and prospects in a manner similar to Decibel's management.

Free Cash Flow is a Non-GAAP Measure that is calculated as cash flow from operations less cash provided by (used in) investing activities. This Non-GAAP Measure should be considered together with other financial information prepared in accordance with IFRS to enable investors to evaluate Decibel's operating results, underlying performance and prospects in a manner similar to Decibel's management.

Free Cash Flow is a Non-GAAP Measure that is calculated as cash flow from operations plus cash provided by (used in) investing activities, changes in non-cash working capital, less repayment of long-term debt. This Non-GAAP Measure should be considered together with other financial information prepared in accordance with IFRS to enable investors to evaluate Decibel's operating results, underlying performance and prospects in a manner similar to Decibel's management.

Non-GAAP Ratios

Adjusted EPS, or adjusted earnings per share, is a non-GAAP ratio, does not have a standardized meaning prescribed by GAAP and is therefore unlikely to be comparable to similar measures presented by other issuers. Adjusted EPS is calculated as net income (loss) and comprehensive income (loss) excluding unrealized gain on changes in fair value of biological assets and change in fair value of biological assets realized through inventory sold, divided by the weighted average common shares outstanding. The Company believes that adjusted earnings per share is a useful metric to normalize net income for biological asset accounting impacts.

Supplementary Financial Measures

International Sales is a supplementary financial measure intended to provide a more accurate depiction of international sales earned by the Company's wholesale operations.

Gross Canadian Recreational Sales is a supplementary financial measure intended to provide a more accurate depiction of gross revenue earned by the Company's wholesale operations.

Net Canadian Recreational Sales is a supplementary financial measure intended to provide a more accurate depiction of net revenue earned by the Company's wholesale operations.

Forward-Looking Statements

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release.

Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements.

In this news release, forward-looking statements relate to, among other things: expectations relating to the scaling of international sales and management's belief that significant opportunity lies ahead for Decibel's operations, expectations that demand for Decibel's products will grow; the ability of Decibel to extend its product offering to new countries and create a global footprint, including anticipation of incremental international volumes, new contracts, new GACP cultivators onboarded, increasing value-add services, and the anticipated contributions from these activities, and the timing thereof; statements relating to the expansion of production of EU GMP extracts to meet increasing demand; statements relating to Decibel's expectations that demand will increase generally; expectations and statements relating to Decibel's position in the vape category and continued growth under this category; expectations and statements regarding the Share Consolidation, including expectations of the benefits of the Share Consolidation as well as obtaining final TSXV approval for the Share Consolidation; Decibel's decisions regarding the NCIB and any expectations that the NCIB will occur in 2026 or at all; Decibel's expectation and belief that international sales are positioned for significantly high single-digit growth through 2026; expectations around the Company's full year outlook; the Company's marketing efforts and brand expansion, and the expected benefits therefrom; and its other business plans and expectations. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements contained in this news release. Except as required by law, the Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections or other factors should they change, except as required by law.

Forward-looking statements and FOFI (as defined herein) are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: risks relating to delays, regulatory changes and impacts; capital requirements; the ability to obtain and maintain licences to retail cannabis products; the ability to successfully market and sell its products domestically and internationally; the ability for the Company to continue successful relationships with international customers and GACP cultivators; review of the Company's production facilities by Health Canada and maintenance of licences (including any amendments thereto) from Health Canada in respect thereof; future legislative and regulatory developments involving cannabis; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the labour market generally and the ability to access, hire and retain employees; general business, economic, competitive, political and social uncertainties; including the imposition of levies and tariffs, and the general impact of such policies on the broader economy; the risk that the Company may not be able to meet consumer demand; the risk that the Company may not improve its operational capacity when anticipated or at all; the risk that Decibel may not remain in compliance with its financial covenants for the remainder of its twelve-month forecast period; the risk that the anticipated benefits of the Share Consolidation will not be realized by the Company and/or the effect of the Share Consolidation may harm the Company's share price and liquidity, market image or its ability to attract further investment, employees or service providers; the risk that the Company's Board may determine not to implement the NCIB in 2026 or at all; and the delay or failure to receive Board, regulatory or other approvals, including any approvals of the TSXV, as applicable. Many of these risks and uncertainties and additional risk factors are described in the Company's MD&A for the year ended December 31, 2025 and its MD&A for the three and six months ended June 30, 2026, which are both available under the Company's profile at www.sedarplus.ca.

With respect to forward-looking statements and FOFI contained in this news release, Decibel has made assumptions regarding, but not limited to: growth of the brand and recognition in Canada will lead to growth internationally; demand for Decibel's products; the benefits of implementing the Share Consolidation; the proposed benefits of implementing the NCIB; Decibel's ability to enter new markets and industry verticals; Decibel's ability to attract, develop and retain key personnel; Decibel's ability to raise additional capital and to execute on its expansion plans; the timelines for new product launches; Decibel's ability to continue investing in infrastructure and implement scalable controls, systems and processes to support its growth; the impact of competition; the changes and trends in Decibel's industry or the global economy; the Company's ability to generate sufficient cash flow from operations and obtain financing, if needed, on acceptable terms or at all; the general economic, financial market, regulatory and political conditions in which the Company operates; the ability of the Company to ship its products and maintain supply chain stability; the continued relationships with the Company's international customers and GACP cultivators, and the successful expansion of EU GMP extracts and related growing demand for such extracts; consumer interest in the Company's products; anticipated and unanticipated costs; government regulation of the Company's activities and products; the timely receipt of any required regulatory approvals; the Company's ability to conduct operations in a safe, efficient and effective manner; the Company's construction plans and timeframe for completion of such plans; and the changes in laws, rules, regulations, and global standards.

Readers are cautioned that the foregoing list of assumptions and risk factors is not exhaustive. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this news release are made as of the date hereof and Decibel does not undertake any obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless so required by applicable securities laws.

Preliminary Financial Information

Any financial outlook or future oriented financial information (in each case "FOFI") contained in this news release regarding the Company's prospective financial position, including, but not limited to Net Revenue, international sales and Adjusted EBITDA projections relating to full year 2026 guidance in this news release, is based on reasonable assumptions about future events, including those described above, based on an assessment by management of Company of the relevant information that is currently available.

The Company's anticipated financial results, including, but not limited to, Net Revenue, international sales and Adjusted EBITDA (see "Non-GAAP Financial Measures" above) assumes, among other things: (i) relative stability in interest rates; (ii) limited relative deterioration in foreign exchange rates due to ongoing and evolving trade and tariff policies; (iii) limited overall impact to the Company's costs resulting from trade and tariff policies and from other geopolitical factors, including conflict in the Middle East; (iv) limited overall impact to domestic and international demand for our products resulting from the broader economic impacts from trade and tariff policies, and related uncertainty; (v) the Company's ability to strengthen its domestic competitive position; (vi) the growth of domestic sales for the Company's products, including, but not limited to, the Standard Issue brand, the General Admission brand, refreshed vape portfolio, and reinvigorated flower offering; and (vii) the Company's international outlook, including, but not limited to, its ability to maintain its international customers, GACP cultivators, flower processing capacity, and EUGMP extract demand. The actual results will likely vary from the amounts set forth herein and such variations may be material.

The Company's anticipated financial results are unaudited and preliminary estimates that: (i) represent the most current information available to management as of the date of this news release; (ii) are subject to completion review and audit procedures that could result in significant changes to the estimated amounts; and (iii) do not present all information necessary for an understanding of the Company's financial condition as of, and the Company's results of operations for, such periods. The anticipated financial results are subject to the same limitations and risks as discussed under "– Forward-Looking Statements" above. Accordingly, the Company's anticipated financial results for such periods may change upon the completion and approval and audit of the financial statements for such periods and the changes could be material.

SOURCE Decibel Cannabis Company Inc.

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