Wednesday, August 27, 2025

Hexo Sees Revenues Decline 31% To $22.7 Million In Q3 2021

Hexo Corp (TSX: HEXO) (NYSE: HEXO) this morning reported a doozy of a quarter. The company saw its revenues decline by $10.2 million on a quarter over quarter basis to that of $22.7 million, while reporting a net loss of $20.7 million. As a result the company entirely missed analyst estimates for the quarter.

Net revenues were down significantly from the second quarter, which saw revenues of $32.9 million. The company blamed the majority of the decline on “the specific timing of strain cultivation decisions made by the company” for its Quebec operations, where sales declined $5.2 million alone. Instead, the company largely focused on pushing its number one position in the beverage category, despite it being one of the smallest categories in Canada.

Gross profit before adjustments meanwhile came in at $5.0 million, which doesn’t include inventory write offs. Post-adjustment, the company reported a gross profit of $4.4 million following cost of goods sold of $18.3 million. Operating expenses meanwhile amounted to $24.9 million, primarily lead by SG&A of $14.8 million, and share based compensation of $2.7 million.

Following other expenses that financing expenses of $2.9 million and non-operating expenses of $1.7 million, the company reported a net loss of $20.7 million for the quarter. Adjusted EBITDA meanwhile came in at negative $10.8 million, a decline from positive $0.2 million in the second quarter of 2021.

Looking to the balance sheet, the company saw its cash position crater on a quarter over quarter basis, falling from $129.4 million to $81.0 million, following a $30.6 million payment on a term loan among other items. Total current assets overall fell from $316.7 million to $251.7 million. Current Liabilities meanwhile fell from $73.7 million to $69.7 million, with accounts payable making up the bulk of liabilities at $43.0 million.

Hexo Corp last traded at $8.02 on the TSX.


Information for this briefing was found via Sedar and Hexo Corp. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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