What guidance or outlook is the company providing for future quarters, and how does it compare to analyst expectations?

Guidance from Decibel

In its Q2 interim release, Decibel Cannabis Company highlighted that the “second‑quarter revenue growth of 38 % and a 22 % expansion in adjusted EBITDA” is a springboard for the rest of 2025. Management now projects mid‑single‑digit revenue growth for each of the next three quarters (≈5‑7 % YoY) and a “double‑digit” margin expansion, targeting an adjusted EBITDA margin of roughly 18 % by year‑end. The company also sign‑posted a 2025‑wide cap‑ex plan to increase production capacity by 15 % and to roll out two new premium product lines in Q4, which should further lift top‑line growth and gross‑margin percentages.

Comparison to analyst expectations

Prior to the release, the consensus among sell‑side analysts on Bloomberg/FactSet was for ≈3‑4 % revenue growth in Q3 and Q4 and an adjusted EBITDA margin of 15 % for the full‑year. Decibel’s outlook therefore exceeds the street’s expectations by roughly 2 % on the top line and 3 % on profitability. The “double‑digit” margin target is well above the 12‑13 % range most analysts had penciled in for 2025, implying that the market may still be under‑pricing the stock relative to its forward‑looking earnings potential.

Trading implications

The upgraded guidance, combined with a strong Q2 performance, suggests upside pressure on the TSXV:DB ticker. On the technical side, the stock has broken above its 20‑day SMA and is testing the $1.30‑$1.35 resistance band, a level that, if cleared, could open a 10‑12 % rally toward the $1.45‑$1.50 range. Given the positive earnings surprise and guidance that outpaces consensus, a long‑position with a stop just below the recent low (~$1.20) is warranted for investors seeking exposure to the premium cannabis segment. Conversely, if the price spikes to $1.45 without further fundamental catalysts, a partial profit‑take or a tighter stop may be prudent to lock in gains while the market digests the longer‑term capacity expansion plans.