November 11, 2025 — Leads & Copy —
Vancouver, BC – C21 Investments Inc. (CSE: CXXI) (OTCQX: CXXIF) has reported its second-quarter financial results, showing strong retail sales growth and positive free cash flow, according to a press release issued Nov. 11, 2025.
The vertically integrated cannabis company announced the filing of its interim financial statements and management discussion and analysis for the quarter ending Sept. 30, 2025. The financial statements, prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP), are available on SEDAR. All currency is reported in U.S. dollars.
Key financial highlights for the second quarter (July 1, 2025 to September 30, 2025) include:
- Revenue of $8.5 million, a 13% increase year-over-year, driven by a 15% increase in same-store sales, slightly offset by lower wholesale sales. However, State of Nevada sales decreased 16% from the same period last year.
- A record number of retail transactions in the quarter, with transaction volumes up 19% from last year.
- Gross Margin of 50.4%, a 690 basis point increase year-over-year, fueled by a higher business mix of retail over wholesale, on slightly lower Cost of Goods Sold (COGS).
- Income from Operations of $1.2 million, up 300% from Q2 last year, driven by a $1.1 million increase in same-store sales on relatively flat SG&A costs.
- Net Income Before Tax of $0.6 million, inclusive of a one-time $0.4 million charge from a previously announced EFF settlement.
- Earnings (Loss) Per Share of ($0.00), up from ($0.01) last year, primarily impacted by Income Tax provisions.
- Adjusted EBITDA of $2.2 million, up 71% from Q2 last year and +107% sequentially.
- Free Cash Flow, before working capital changes and taxes, of $1.9 million, up 88% year-over-year and +105% sequentially; Income Tax paid in Q2 of $0.5 million and $1.3 million year-to-date.
C21 Investments CEO and President Sonny Newman commented on the results in the release. “Our 15% growth in same store sales over Q2 last year, versus a 16% decline in state of Nevada sales, is a testament to the strength of our business model and ability to deliver outsized results in what remains a challenging market,” he said.
Newman added that the company continues to expand its customer base, as evidenced by the record number of retail transactions this quarter. The company shifted its revenue mix in Q2 to reduce wholesale exposure given credit quality challenges in the market, the release stated.
The company refiled amended U.S. federal income tax returns for the years ended January 31, 2022, January 31, 2023, January 31, 2024, and the two months ended March 31, 2024. The company has taken the position that it does not owe taxes attributable to the application of Section 280E of the Internal Revenue Code of 1986.
Management exercises judgment when assessing the probability of successfully sustaining the Company’s tax filing positions, and in determining whether a contingent tax liability should be recorded and, if so, estimating the amount, the release stated.
C21 Investments Inc. cultivates, processes, and distributes cannabis and hemp-derived consumer products in the United States. The company owns Silver State Relief and Silver State Cultivation in Nevada, including legacy Oregon brands Phantom Farms, Hood Oil and Eco Firma Farms. These brands produce and distribute a range of THC and CBD products from cannabis flowers, pre-rolls, cannabis oil, vaporizer cartridges and edibles.
Additional information on C21 can be found at www.sedarplus.com and www.cxxi.ca.
Contact:
Sonny Newman, CEO and President
Source: C21 Investments Inc.
