OrganiGram (OGI) Q1 2026 earnings summary

Executive summary

• Achieved strong year-over-year growth in Q1 Fiscal 2026, with net revenue up 49% to $63.5 million, driven by Canadian market leadership, Motif Labs integration, and expanding international sales.

• Adjusted EBITDA rose 273% year-over-year to $5.3 million, reflecting operational efficiencies and acquisition synergies.

• Net income reached $20.0 million, reversing a net loss of $27.5 million in Q1 Fiscal 2025, mainly due to fair value changes in financial instruments.

• Maintained #1 market share in Canada for vapes, milled flower, and concentrates; expanded U.S. retail footprint to 11 states.

• Strategic investments from BAT and Jupiter pool support global expansion and innovation.

Financial highlights

• Q1 net revenue rose 49% year-over-year to $63.5 million, with international revenue up 51% to $5.0 million.

• Adjusted gross profit increased 67% to $23.9 million, with adjusted gross margin up to 38% from 33% year-over-year.

• Adjusted EBITDA was $5.3 million, up 273% from the prior year; net income reached $20.0 million versus a net loss of $27.5 million last year.

• Cash and short-term investments totaled $63.0 million at quarter end, with working capital of $162.5 million as of December 31, 2025.

• No material debt reported; shareholders' equity increased 6% to $369.5 million.

Outlook and guidance

• Management reaffirmed full-year guidance for revenue exceeding $300 million, supported by expanding margins and improved fundamentals.

• Expects continued international sales growth, sustained elevated adjusted gross margin, and further operational efficiencies.

• Awaiting EU-GMP certification for Moncton facility, expected to boost international sales and margins.

• U.S. regulatory changes may impact hemp-derived THC product activities by November 2026.