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 and gross revenue up 46% to $97.3 million, driven by Canadian market leadership and expanding international sales.

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

• Net income reached $20.0 million, reversing a net loss of $27.5 million in Q1 Fiscal 2025, primarily 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.

• Completed acquisitions of Motif Labs and Collective Project, enhancing product portfolio and accelerating U.S. market entry.

Financial highlights

• Net revenue increased to $63.5 million from $42.7 million year-over-year, with international revenue up 51% to $5.0 million.

• Adjusted gross profit was $23.9 million (38% of net revenue), up 67% year-over-year.

• Adjusted EBITDA: $5.3 million, up 273% year-over-year.

• Net income: $20.0 million, compared to a net loss of $27.5 million in Q1 Fiscal 2025.

• Total cash and short-term investments stood at $63.0 million as of December 31, 2025.

Outlook and guidance

• Expects continued international sales growth and sustained elevated adjusted gross margin throughout Fiscal 2026.

• Anticipates further operational efficiencies, higher yields, and benefits from Motif integration.

• Awaiting EU-GMP certification for Moncton facility, with follow-up responses submitted to regulators.

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

• Confident in maintaining guidance despite temporary international sales issues and competitive pressures.