Decibel Reports First Quarter 2026 Results: Quarterly Revenue Grows 41% YoY to $30 Million, Issues Q2 2026 Guidance

Press Release

CALGARY, ALBERTA – May 21, 2026 –Decibel Cannabis Company Inc. (the “Company” or “Decibel”) (TSX-V:DB) (OTCQB:DBCCF), a market leader in Canadian branded cannabis manufactured products and global medical exports, today announced its financial results for the three month period ended March 31, 2026.

“Q1 was a strong start to the year with revenue up 41%, international sales tripling and Adjusted EBITDA doubling year over year. This performance is especially meaningful as we emerge from last quarter’s headwinds with a strengthened balance sheet and real momentum heading into the strongest season for our domestic portfolio. The setup for the rest of 2026 is compelling.”

Benjamin Sze – Chief Executive Officer

Q1 2026 Highlights

• Net Revenue of $30 million, growth of 41% year over year
• International Sales of $9.6 million, growth of 330% year over year
• Adjusted EBITDA⁽¹⁾ of $6.9 million, growth of 100% year over year

Q2 2026 Outlook⁽²⁾

Financial Outlook

• Net Revenue of $33 to $35 million, implying year over year growth of 14% to midpoint of range

Decibel also reconfirms its previously issued 2026 full year guidance: Net Revenue of $130 to $135 million, and Adjusted EBITDA of $27 to $31 million.

Notes:

¹ Non-GAAP financial measure. Refer to “Cautionary Statements – Non-GAAP Measures” for further details.

² The Company’s outlook makes numerous assumptions. Assumptions used for the purposes of outlook may prove to be incorrect and actual results may differ from those anticipated. Refer to “Cautionary Statements – Preliminary Financial Information” for further details.

International Update

Decibel’s international sales grew 330% year over year to $9.6 million, despite growth being impacted by delays in German permit timelines. German permit processing time has improved materially in Q2 2026, and management expects Decibel will experience growth through the balance of the year as the Company converts its existing backlog to revenue. AgMedica’s EU GMP certified platform continues to perform well above the original underwriting case, validating the international strategy underpinning the acquisition. We continue to believe international sales are positioned for significantly high double-digit growth through 2026, supported by the following Q1 2026 milestones:

• Shipped GMP-extracted product into Germany in Q1 2026, marking the first deliveries into the largest medical cannabis market in the EU
• 16+ international customers with executed supply agreements
• 45+ GACP cultivators onboarded with executed supply agreements
• 60 tons per Annum of flower processing capacity at ~30% utilization based on Q1 2026 results
• Expanding production of EU GMP extracts to meet growing demand, allowing for ease of access into vapes and oils, with ongoing shipments into multiple countries

Domestic Update

Decibel’s domestic sales returned to growth at 7% year over year, driven by strong early performance of the new Standard Issue brand and the refresh of General Admission’s product portfolio. Management continues to see opportunities to expand the Company’s offering and store penetration, particularly given Standard Issue’s early momentum. We continue to believe domestic sales are positioned for high single-digit growth through 2026, supported by the following Q1 2026 milestones:

• Overall market share in Q1 2026 grew from 4.1% to 4.4% based on HiFyre data
• Standard Issue launch has continued to grow since launch, now 8th overall in the vape category (2.5% share) and 10th overall in Infused Pre-Roll (2.2%) share based on HiFyre data
• Refreshing General Admission’s vape portfolio has helped maintain a leadership position in the fast-growing liquid diamond segment, as the #1 Liquid Diamond 510 brand and #2 Liquid Diamond All-in-One brand. This along with the launch of Standard Issue has helped Decibel increase its vape market share by 1.50% year to date.
• General Admission remains the #1 Infused Pre-Roll brand and has now converted its entire IPR portfolio to diamond-based formulations heading into peak seasonality for pre-rolls this summer.

First Quarter Highlights

• Net Revenue was $29.8 million, a year over year increase of 41%. Net revenue growth was driven by continued growth in international demand and success with recent domestic sales launches.
• Domestic Sales were $20.3 million, a year over year increase of 7%. The Company saw strong traction on new products and its new Standard Issue brand with market share gains during the quarter.
• International Sales were $9.6 million, a year over year increase of 330%. The increase in international sales was driven by strong volume growth and high demand for the Company’s products, partially offset by the impacts of delayed permitting timelines in Germany.
• Gross Margin Before Fair Value Adjustments was51% in the first quarter of 2026, compared to 50% in the first quarter of 2025.
• Adjusted EBITDA⁽¹⁾ of$6.9 million, a year over year increase of 100%. The increase in Adjusted EBITDA for the quarter was primarily driven by international sales.
• Free Cash Flow⁽¹⁾ of ($14.6) million, reflecting a $13.2 million one-time reduction in payables settled in connection with the Company’s February 2026 debt refinancing. This represents a shift in the form of obligation rather than an operating use of cash, with the related amount refinanced under the new credit facility. Excluding this item, Free Cash Flow for the quarter would have been meaningfully positive and consistent with the Company’s underlying operating performance.
• Adjusted Net Income⁽¹⁾ of $3.1 million, a year over year increase of $3.2 million.
• ATB Credit Facility. Decibel closed a new $61 million credit facility with ATB Financial and ATB Cormark Capital Markets that extends Decibel’s debt maturities out to 2030, reduces 2026 payment obligations by $5 million and provides up to $10 million in undrawn available capital. The Company’s pro forma Trailing Twelve Month Total Debt to EBITDA is expected to remain below 2.0x. The Company has a $10 million revolver which is currently undrawn and available and the Company intends to keep the facility undrawn.
• Creston Facility Sale. Decibel announced a conditional agreement for the sale of its cultivation property located in Creston, British Columbia. The agreed sales price is $2.5 million. The sale reflects further optimization of Decibel’s operating footprint, having no impact to the Company’s revenue outlook while anticipated to save $4 million annually. The sale remains subject to satisfaction of certain conditions.  Decibel expects to complete the sale before June 30, 2026.

Note:

¹ Non-GAAP financial measure. Refer to “Cautionary Statements – Non-GAAP Measures” for further details.

Summary Highlights

¹ Supplementary financial measure. Refer to “Cautionary Statements – Non-GAAP Measures” for further details.

² Non-GAAP financial measure. Refer to “Cautionary Statements – Non-GAAP Measures” for further details.

³ Non-GAAP ratio.  Refer to “Cautionary Statements – Non-GAAP Ratios” for further details

Decibel’s consolidated interim financial statements for the three months ended March 31, 2026, and 2025 (the “Financial Statements”) and related MD&A are available on SEDAR+ under the Company’s profile at www.sedarplus.ca.

The Company will host a live conference call to discuss the results at 10:00 a.m. MST today. To instantly join the conference call by phone, please use the following link to easily register close to the call start time. After registering, the system will call you instantly and connect you into the conference call automatically:

https://registrations.events/easyconnect/2917219/rec4ETEMWtBBxnYLB

Alternatively, you may dial in to the conference call to be connected by an Operator by calling  1-647-932-3411 for local participants, 1-800-715-9871 for Canadian participants, or 1-(888)-880-3330 for U.S. participants, referencing conference ID 2917219.

For More Information Contact:

Decibel Cannabis Company Inc.

info@decibelcc.com

1-844-993-4769

www.decibelcc.com

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