Jason Drummond

We’re relaunching cannabis coverage next week on 4/20, and one of the names we’ve been tracking, Decibel $DB $DBCCF, just printed results that are hard to ignore. While it’s obviously too small for most institutions, the results are nonetheless noteworthy and speak to an industry that has consolidated and matured. 2025 revenue grew 22% to roughly $113M, with $23M of Adjusted EBITDA, and free cash flow nearly tripled year over year — rare to see real, repeatable FCF in cannabis at this scale. For 2026, management is guiding to $130–135M of revenue and $27–31M of Adjusted EBITDA, implying high‑teens top‑line and mid‑20s EBITDA growth at the midpoint. On our rough numbers, using an enterprise value of roughly C$110M and the midpoint of 2026E EBITDA guidance, Decibel is trading around 3.5–4.0x EV/EBITDA on next year — a low‑single‑digit multiple for a business compounding EBITDA 20%+ with expanding free cash flow, which is where the mispricing starts to show up. The Canadian business has stabilized and the European business is growing like gangbusters, driven largely by a creative distressed acquisition of AgMedica that accelerated their entry into EU‑GMP export markets. Consolidation seems likely to ramp up in the Cannabis sector as companies like this are ignored in the public markets and appear to be trading at a meaningful discount to their private market valuation.