CALGARY, AB, Aug. 14, 2024 /PRNewswire/ - Decibel Cannabis Company Inc. (the "Company" or "Decibel") (TSXV:DB) (OTCQB:DBCCF), a market leader in premium cannabis and extract manufactured products, is pleased to announce its unaudited interim financial results for the three and six month period ending June 30, 2024. "Decibel has shown good discipline reducing our current liabilities by ~5mm this quarter. Market share has been challenged but early indications from Qwest relaunch suggest we will regain market share in flower.  A continued focus on execution and capital efficiency will serve as the platform for future growth." said Benjamin Sze, Decibel's Chief Executive Officer. Second Quarter Highlights National Market Share(1) of 5.6% in Q2 2024, which placed Decibel as the 4th largest licensed producer in Canada by market share. Net Revenue was $22.1 million in the second quarter of 2024, a year over year decrease of 22%. Net revenue decrease driven by increased competition in the infused pre-roll segment, vape consumers switching towards large format 510 cartridges and disposables and the halting of exports to Israel as the Company transitioned to a new distribution partner. Decibel is combatting market share declines with the relaunch of its domestic flower brand Qwest, introduction of large format 510 cartridges and disposables, and Vox brand extension. Gross Margin Before Fair Value Adjustments was 42% in the second quarter of 2024, compared to 43% in the second quarter of 2023. The quarter was negatively impacted by a write-down to inventory of $1.4 million. Adjusted EBITDA(2) of $3.9 million in the second quarter of 2024, with a year over year decline of 46% over the second quarter of 2023. The decrease in Adjusted EBITDA quarter over quarter was primarily driven by a decline in net Canadian recreational sales and international sales. Positive Free Cash Flow(2) of $0.9 million in the second quarter of 2024, with a sequential increase of 194% over the second quarter of 2023. Adjusted Net Income(2) of positive $0.6 million in the second quarter of 2024, with a decline of $3.7 million over the second quarter of 2023. Adjusted Earning Per Share ("Adjusted EPS")(3) of $0.00, with a year over year decrease of $0.01. Notes: 1 HiFyre Retail Analytics, Licensed Producer Sales over time Nationally  2 Non-GAAP financial measure. Refer to "Cautionary Statement Regarding Certain Non-GAAP Measures" for further details. 3 Non-GAAP ratio. Refer to "Cautionary Statement Regarding Certain Non-GAAP Measures" for further details.   Summary Highlights Three months ended Six months ended June 30 June 30 2024 2023 2024 2023 (thousands of Canadian dollars, except where noted) Gross Canadian recreational sales 1 $33,644 $45,960 $65,946 $85,853 Net Canadian recreational sales 1 $22,125 $27,392 $42,723 $51,706 International sales 1 $37 $1,137 $393 $1,766 Total Gross revenue $33,681 $47,097 $66,339 $87,619 Net revenue $22,162 $28,529 $43,116 $53,472 Gross profit before fair value adjustments $9,288 $12,280 $19,315 $24,957 Gross margin before fair value adjustments 42 % 43 % 45 % 47 % Adjusted EBITDA 2 $3,940 $7,302 $7,528 $14,066 Net income (loss) and comprehensive income (loss) $122 ($423) ($3,212) ($992) Adjusted net income (loss) 2 $607 $4,263 ($2,872) $7,612 Cash flow from operations $985 $768 $1,860 $2,965 Free cash flow 2 $895 $304 $1,240 $2,015