Q1/26 First Look: Domestic Recovery; Margin Strength Drives DD% EBITDA Beat

Research evidence excerpt

Q1/26 First Look: Domestic Recovery; Margin Strength Drives DD% EBITDA Beat

Cannabis

Decibel Cannabis Company

TD SECURITIES INC. - CANADA QUICK TAKE: EARNINGS UPDATE

May 21, 2026

Price: C$0.13 (05/20/2026) Q1/26 First Look: Domestic Recovery; Margin

Price Target: C$0.15 Strength Drives DD% EBITDA Beat

HOLD (2)

ESG SCORE: 60/100

Derek J. Lessard^ THE TD COWEN INSIGHT

514 289 0384

DB showed solid domestic execution, underpinned by strong product and brand offerings,

derek.lessard@tdsecurities.com

while margins surprised to the upside on favorable mix and op. leverage. International sales

Ryan Neal^ also accelerated. Taken together (and supported by a normalization in the German regulatory

416 308 2213 backdrop), we see a clear path to sustained top-line momentum and continued margin

ryan.neal2@tdsecurities.com

expansion. The shares should be strong today.

Key Data

Symbol TSX: DB-V Impact: POSITIVE

Market Cap C$75.0MM

Our 'positive' impact statement reflects the cross-brand success of DB's domestic portfolio,

which drove 7% y/y segment growth. DB's EBITDA margins also came in +115bps ahead of our

forecasts, which drove a ~17% EBITDA beat vs consensus. We continue to see further upside

given DB's rapid international growth, with segment sales up 330% y/y.

Net revenue of $29.8mm was in line with cons./TD Cowen ($29.8mm/$29.6mm):

■Domestic sales +7% y/y (~1% ahead of TD Cowen), supported by continued traction from the

expanded product portfolio (particularly in vapes, where refreshed Liquid Diamond SKUs

have driven ~150bps of category share gains YTD). Additionally, the rollout of Standard

Issue (DB's value brand) contributed to incremental share gains across vapes and pre-rolls.

We view this value segment as a key lever to sustain domestic share (and drive growth)