This analyst likes Decibel Cannabis right now

Haywood analyst Neal Gilmer maintained a “Buy” rating and $0.25 target on Decibel Cannabis (Decibel Cannabis Company Stock Quote, Chart, News, Analysts, Financials TSXV:DB) in a May 21 report after solid first-quarter results.

“In our opinion, Decibel has demonstrated the quality of its brands by capturing market share relative to the peer group,” Gilmer said. “The company’s push into the international segment has driven revenue growth and is expected to continue this year.”

Decibel reported Q1 revenue of $29.8-million, up 40.5% year-over-year and slightly below Gilmer’s $30.4-million estimate. Adjusted gross margin was 52.1%, above his 47.0% forecast, while Adjusted EBITDA was $6.9-million, ahead of his $5.8-million estimate and up 100% from a year earlier.

Gilmer noted that international revenue rose 330% year-over-year, helped by the AgMedica acquisition, while the domestic business returned to growth with a 9% increase. He said improving German permit timelines should support further international growth in 2026.

Decibel reiterated 2026 guidance for revenue of $130-million to $135-million and Adjusted EBITDA of $27-million to $31-million. Management also guided Q2 revenue of $33-million to $35-million.

The analyst said he tweaked his estimates upward following the Q1 EBITDA beat and strong Q2 guidance. He expects Decibel to generate Adjusted EBITDA of $29.6-million on revenue of $133.0-million in fiscal 2026, improving to $34.1-million on revenue of $149.9-million in fiscal 2027.

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