Thanks for taking the time and coming on. My name is Ben. I am the CEO of Decibel Cannabis Company, and with me today is Stu, our CFO. I'm going to share a little bit about Decibel and what we do. We are a Canadian cannabis company. We are the sixth largest by market share here in Canada. We've been around since 2019, and our stores are found nationwide. Our products are found nationwide. With that, we have the Qwest brand, the Vox brand, and General Admission, which is a top-three brand here in Canada. Recently, late last year, we did an acquisition, which is fueling the majority of our growth, and we're really excited to tell you about that, going into international markets.
When you look at the total opportunity for cannabis, it's immense. The industry is growing at a 25% CAGR and projected to continue into 2033. We know that it's a defensible consumer product. Within the sin category, it represents a fraction today, but we view it as very highly certain, growing at a very quick pace, far outpacing other sin products. Within it, it's highly fragmented. There is no single dominant player that is controlling the market, defending against new entrants coming in. We are the ones driving growth alongside our competitors, partners, etc . When you look at what Canada's contribution is within this space, it's actually outpacing the growth. What that would signify is us as Canadians are helping fuel the rate of growth globally. We've grown the market at 54% through Canadian exports, and it's been a really tremendous position for the business to participate in. As Ben mentioned, we entered into the international landscape materially in Q4 of last year.
Why we think that's so compelling for the Canadian business, being combined with that international space, is all the learnings that we're able to take from the Canadian landscape. The cannabis space within Canada has gone through an extreme down cycle. It's allowed us to be extremely lean, focus on margin, focus on profitability. It's created a legal framework to which we can participate meaningfully, have certainty over our free cash flows, and then ultimately redeploy to accelerate growth internationally. It's a great testing ground in terms of product innovation. We are far, far and away, leading in terms of the products that we're able to create, vapes, infused pre-rolls, various extracts, edibles, beverages, etc . North America ultimately is what's driving it, and Canada is the conduit to being able to export.
In that sense, it's been extremely important for us to take our learnings within Canada, have an existing platform that's been built, and leverage that into success internationally. When we look at the international market, it's transforming in a way that's very beneficial, and we believe we can approach very thoughtfully. As I mentioned, Canada is leading the way. We view it as a mature market at this point. It's growing around 5% annually. When you look at many of the more nascent markets, particularly in Europe, they're growing at an incredible pace. Germany would be the leader within this international space, and it's grown its exports by, or imports by, roughly 3x year- over- year. It's tripled in terms of market size. We're seeing equally very attractive growth rates within Australia, U.K. ultimately shortly to follow.
What's really important is Germany's paving the way for ultimately European countries to follow suit. We would expect a cascade of additional provinces or additional countries coming online, U.K. being the first to follow. There remains a tremendous opportunity with how broad the EU is relative to purely just the Germany opportunity.
I wanted to double down on our team. I think it's important to highlight that this management team has been around since day one, and through our results, we've been consistently profitable, showing both revenue growth as well as profitability in a sector that's very rare. We believe that this track record, especially with using the Canadian platform as learnings to springboard our international growth, allows us to de-risk our approach to the international markets.
When you look at a geographic snapshot of the business, domestic, so Canadian sales represent 85% of our sales today. International is only 15%. What we're expecting is single-digit growth from our domestic business, but double-digit growth from our international. If you look at the past quarter- over- quarter in terms of sales, we increased our international sales by 187%. We don't think that's something that we can maintain indefinitely, but certainly we think that there's a lot of growth left in the pipeline for us to go out and execute against, and it'll lead to consolidated growth that continues to remain attractive. When you think about what domestic represents and international today, we're largely concentrated within value-added products. Those are manufactured products like pre-rolls, like vapes. Ultimately, these are products that we believe we can differentiate better than traditional flower products.
That's our bread and butter here in Canada, but we have a broad array of products that address 98% of total sales within the marketplace. International is far different today because it's all medical. The predominant product that you see is flower, and that's where we're cutting our teeth today and building a lot of success. We are well positioned with the necessary licensing capabilities and ready to turn it on as we see consumers step into new categories to bring ultimately extract products, other value-added products where we've really driven success here in Canada, into these new markets. Today we participate across seven different countries, but we expect to add more and more as new countries legalize, and we're working with partners overseas to make that happen. When you think about our asset base, you have this immensely growing market opportunity.
We need to make sure that we're well positioned to deliver. We have assets that are ultimately very flexible to deliver both domestically and internationally. We have the necessary licensing. We have unique attributes to our facilities that make them highly scalable. For international delivery, we can more than 5x our output from our international site. We believe we have a lot of runway before we have a significant amount of capital to invest to go and unlock further growth opportunities.
Let me tell you a little bit more about our success here domestically. In Canada, we started off legalization with flower as well. As such, we came out with cultivation, indoor craft. Qwest was one of the top brands in the early days of cannabis. As we evolved the business, we got into what we've coined the term as RTC, ready to consume. That's when General Admission hit the market and was very well received, making it one of the top brands here in Canada. That portfolio is all manufactured in Calgary, and it involves infused pre-rolls, pre-rolls, vapes, essentially any product you walk into the dispensary, purchase, and can consume immediately. Now, shifting into international, it is a nascent market that we highly regulate, starting with medical. In fact, for most markets, it's deemed a narcotic with a relaxation, and as such, it's a different approach.
Because we've been agile and adaptive, and as Stu mentioned, fully regulatory compliant across our entire operating history, we feel that we're well positioned to capitalize on the international markets, as well as impart our learnings and experience from here into those fast-growing markets.
I think it's important to note, cannabis, particularly globally, as a medical product, is highly regulated. It's treated to the highest standard, almost like pharmaceuticals. We're happy to get into some of the competitive advantages if you want to schedule time with us, just given how complex it is in nature. We feel like Decibel, positionally, is one of the unique players in the space who has one of 13 licenses for flower exports and one of three licenses for extract exports. Those are the important things that we think are really critical. We can speak to why that's so unique to us. Ultimately, that is what positions us as a Canadian player to take advantage of these markets. That leads us to our 2025 full-year expectations. We've shown them on the page. We remain confident in delivering $25 million of EBITDA, and all of these various items.
We think it presents a significant amount of growth relative to 2024. We believe that will continue into the further years as we'll update our guidance for 2026 with our Q3 reporting around then. We'll skip ahead to the financials and then wrap up for questions. When you look at how we've performed, we have domestic and international on the right-hand side. Within our domestic market, we've done incredibly well and scaled the business. What I would highlight is we do have a blip in 2024. That's when we were at the leading edge of new product innovation. We were the first to introduce infused pre-rolls, and for a period of time, the company had 50%, 60% market share by virtue of us being the only player within the space.
When you look at the trend, certainly you see a dip into 2024, and that's where we've seen the market normalize. Ultimately, with our 2025 results, we've now seen year-over-year growth continue, where just this most recent quarter we demonstrated 7% growth within the domestic category, and we're back into growth mode. International is far more sharp of an uptick. We completed this acquisition in Q4 of last year. Year to date, we've delivered $8.4 million of revenue, and we've guided towards north of $30 million of revenue for the full year. More growth yet to come. That's been underpinned by profitability. We're not one of those cannabis companies who's focused on growth at all costs. We want to do things in a thoughtful way where we can create cash flow and reinvest in the business to drive success. We've maintained great margins, close to 50%.
We expect that to continue into the future. We've demonstrated EBITDA for 5+ years, and we've generated adjusted free cash flow for the past three years straight. It's really critical to us that we're driving that success, both at the bottom line and top line because that's our belief, that makes us attractive. Cannabis has gone through its cycles, sometimes investors not as interested in the space as it may otherwise present. Our belief is that the best way we as management can create value is driving fundamental success, and that comes through cash flow. You see that in our capital structure. We want to be protective over our equity holders. We try to maintain a good balance between debt and equity. We have attractive debt terms, so we're less than, or we're approximately two times debt-to-EBITDA.
We feel like that's comfortable given the certainty that we have within Canada. It has attractive interest rates sub 5%, and it enables us to be opportunistic and flexible with our growth without ultimately pushing equity holders into a diluted position, which we've seen within the cannabis space.
I think it's quite simple. As a summary, Decibel has a proven track record here in Canada. We've done it here in a very difficult environment and will continue to do so. The domestic market we view as single-digit growth, and we're happy to continue competing for market share here, and we've shown that. The clear line of sight to go forward growth is driven by our international markets, or sorry, our international access to those markets. I firmly believe in the fullness of time, more of those markets come online. With our recent acquisition, we're not just selling our product globally. We are able to facilitate the sales of our product as well as a bunch of our competitor and partner producers here in Canada.
I think when you combine the two, it leaves for a very compelling story, especially one with which generally market sentiment is improving around cannabis throughout.
I think we welcome any questions. Want me to go?
Sure. Of course. Look, I think that everybody knows somebody, an aunt, an uncle, a cousin who's lost money on cannabis. Given how much money has been lost, there's this overhang that we as Decibel continuously have to fight. This is like, like you said, you're new to cannabis and that's the first thing you bring up, which is totally fair for the industry. I think what we've managed to do, despite that it's not just cannabis, all the big guys losing money, is we've made money and we've gained market share and we're clawing through that. We feel like we've been in this industry for a long time. It is still a nascent industry even here in Canada, right? Seven years, everybody's learning, including the government.
I firmly believe if we've been successful throughout these past seven years, I'm betting on us to be successful over the next seven years compared to someone like cannabis. You bring up Simply Solventless, I think, right? The biggest difference, I don't want to shit on anybody else's names, you know, like, you know, everybody, I personally believe in everybody's, heard me say this, I want more cannabis companies to win because I think that collectively takes the stigma off the industry such that more investors come back into the space. Specific to Simply Solventless, they have been around since the beginning. They didn't go through the peaks and valleys like we have. As they come in with the consolidation approach, which is a very valid strategy, they're picking up pieces when, you know, I'd love to say the bottom has already fallen out.
You never know in cannabis, we have an oh shit factor we talk about internally. Something always happens. They're able to look at assets in a different value metric than we were starting when Canopy raised $5 billion. Right?
I think the other important thing to contrast is when you look at our business, the growth really comes from organic growth. We're not dependent on finding attractive deals or challenged assets to pick up in market to drive growth and value for our shareholders long term. We have a clear executable strategy. We're participating directly in tailwinds globally, and we think it simplifies the story and the execution. Yes. Yeah, go for it.
Yeah, specific to Germany, sorry, I'm losing my voice a little bit. Specific to Germany, the cost is quite high, and labor is roughly 60% higher than over here. When you think about the cost of electricity and all that, it just makes sense for them to import. I think that leads to the next question. Does Canada become, like long term, are we always going to be able to export our product? That's where I think we're positioned uniquely in the sense that, with the acquisition that we did, we're not just reliant on that market as an outlet for our product. We're able to facilitate the export. With that EU GMP, again, I don't want to get too complex. We have, anybody who wants to sell to these markets needs to use us or one of a handful of companies that have that specific license type.
Yeah, I heard the question. It helps us be more capital efficient. It's very costly to go out and build cultivation facilities. It takes time, so you can't meet market demand immediately. These facilities cost tens of millions of dollars, and they take two to three years with licensing from the government. If we're able to utilize other groups who have existing capacity, and certainly the Canadian market has had its issues as a closed market for a period of time with oversupply, we can tap into that directly and bridge these two markets. It just allows Decibel to scale at a far quicker pace without significant dollars being spent and time wasted.
Yeah, maybe I can say it like this, right? Our internal production is all sold out, and that's like roughly 14 tons annually, right? By the end of the year, we're going to be at 60 tons throughput capacity. This is independent, separate from our production, of which we charge an upgrading fee. That ranges anywhere from $0.50- $1.25 per gram as a processing fee, depending on the size and packaging and all the details. To Stu's point, without having to build a greenfield facility, you get the lines and all that stuff, we're able to capture margins, revenue, sorry, going and facilitating the export of this product. Germany, about a month ago, hit their import quota of 122 tons. Not all of that is from Canada, I get that.
They hit their mass of 122 tons, and just yesterday, they received approval to bring in an extra 55 tons. There is a lot of products out there, and then Australia, new countries coming online in the EU, Poland's coming back. There is more market share to be grabbed. First half, primarily our own product. One other thing, again, we're getting deep in the weeds here, but supply chain for international takes a little bit longer to set up. Namely because, as you can imagine, it's a regulated product. You're exporting it out of Canada, importing it into Germany. There are multiple, call it QA regulatory checks, as well as government agencies. To establish this supply chain is not like me selling into the OCS and getting a PO and fulfilling it in two weeks type deal, right? We're talking months.
The stickiness of these contracts, however, they're measured, like contracts are measured in years because you're fulfilling patients. Given this is a medicinal product, that strain, that access to product is very important to those patients in the recipient markets. There's about, last count, 13 EU GMP-certified facilities here in Canada. I don't have a count for how many exist around the world, but there are EU GMP-certified facilities in, say, Portugal, in Malta, in the Czech Republic. Four months ago in Portugal, maybe three months ago, there was a controversy because there were these EU GMP-certified facilities that were not doing what they're supposed to do through the EU GMP process. As a result, it just shut down any important exports out of that country, which was awesome for us. We fielded a bunch of calls, people trying to shift the supply chain.
I firmly believe, yes, the international markets are growing. One of our exports here in Canada is not just the flower itself, the product, but good regulatory compliance. We take that very, we've never had an issue across all our facilities. We've got four licensed facilities, and we're in good standing since inception. Of the 13, going back to your question, half of them, I'm aware, are doing the facilitation because when you set up this GMP, it's quite time-consuming and capital-intensive. Most people set this up with the intention of just exporting their own product. We had the good fortune to acquire a facility with a 110,000 sq ft footprint, which, again, I reiterate or double down on Stu's point, we don't need a ton of CapEx to bring up that capacity. By the end of the year, we're at 60 tons.
If this market continues to grow, we can double that once more with little CapEx. We're talking wrapping, curing pots and stuff like that, not a large-scale renovation. Feeling pretty good about our international approach.
Any other questions? If not, we're available at table 24. You can, we welcome any other, any additional questions and happy to speak more about the business then.
Thanks, guys.
Thanks.