Simply Solventless Concentrates (TSXV: HASH) reported its Q1 2025 results, with gross revenue hitting $12.4 million—up 298% from $3.1 million a year earlier and roughly 60% of the company’s entire 2024 haul of $20.5 million. Net revenue followed in lock-step at $9.9 million, a 330% leap year-on-year.
But even with the revenue growth, gross margin percentage barely moved, edging to 48.7% from 48.6%.
Net income still spiked to $8.4 million versus just $0.5 million last year, but roughly $7.7 million of that gain stems from the bargain-purchase accounting tied to the Humble acquisition. True operating profitability was a far slimmer $1.6 million on a normalized basis, albeit still triple last year’s figure.
EBITDA clocked in at $9.5 million, fifteen times last year’s run-rate, and adjusted EBITDA lands at $3.25 million, a 417% jump. The adjusted EBITDA margin of roughly 33% materially outpaces most Canadian peers, though the figure benefits from a first-quarter production mix rich in high-margin extracts and limited post-acquisition integration costs.
Cash generated from operations reached $2 million, up from $0.6 million a year earlier. The imminent test will be whether cash conversion improves once Humble is fully integrated and headcount reductions flow through a complete reporting cycle.
On the balance sheet, total assets exploded to $57.8 million from $12.6 million last year and $38.6 million just three months ago, driven by the Humble facility and associated intangibles. Working capital flipped from a marginal $1.6 million at 2024 year end to $10 million.
Operationally, Humble’s 98,000-square-foot grow gives the firm immediate control over 8,000–9,000 kilograms of annual flower output and, management claims, an all-in cultivation cost target of roughly $0.70 per gram.
Management trimmed roughly 58 positions in March, stripping an estimated $2.5 million in annual payroll, with another $0.5 million–$1 million of synergies identified. Those cuts must offset the 11% interest expense on fresh debentures and any dilution from six million warrants struck at $1.20.
Simply Solventless last traded at $0.20 on the TSX Venture.
Information for this story was found via the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
