Triple digit growth, high margin and high return on investment

Looking at BXN, it has a lot of attributes of an interesting investment :
- strong revenue growth : + 114 % in Y 23, + 80 % in FY 24, + 215 % in FY 25 and + 130 %e in FY 26,
- high margin : EBITDA margin of 18 % in FY 25,
- which translated in a good level of cash flow from operation and free cash flow in FY 25 (free cash flow yield of around 4 %),
- and a high level of return : ROE of 43 % in FY 25 (despite a sustantial level of net cash).

Obviously, these levels of margin and return are high for a manufacturer.
So, a key question in the future is about the ability to keep such a margin.
At this stage, my understanding is that almost all of their profit comes from Australia where they benefit from the fact that the regulator has limited the number of accredited manufacturers, in particular for products others than flowers.

Like other investors, I was surprised by their difference of EBITDA margin between H1 25 (29 %) and H2 25 (10 %).
The company did a rather poor job at explaining it.
Not easy to understand why they had steady cash flow from operation during the last 4 quarters, while EBITDA was 3.7 m$ during H1 25 and only 1.8 m$ during H2 25.

The company gave a rather bullish guidance for FY 26, expecting + 130 % for revenues and a stable EBITDA margin.
Based on its current sales run rate (and signed contract), they will probably have another strong growth for sales.
The main question is probably about margin, after what happened during H2 25.

If the company can reach its targets for FY 26, it is quite cheap.
Good that they publish quarterly cash flows, as it will give us some indications.