OrganiGram (OGI) Q4 2025 earnings summary

Executive summary

• Achieved record gross and net revenue, adjusted EBITDA, and international sales in fiscal 2025, maintaining #1 Canadian recreational market share at 11.9% and strong brand performance nationally.

• Motif Labs and Collective Project acquisitions expanded extraction, beverage, and U.S. market presence, with significant operational synergies realized and no market share dilution.

• Expanded international business with record sales in Germany, UK, Australia, and the U.S., and formalized an international business unit.

• Advanced operational scale and innovation with FASTTM technology, genomics R&D, and seed-based cultivation, supporting future growth.

• Launched new products and prepared for further launches in vapes, pre-rolls, and beverages, focusing on margin improvement and operational optimization.

Financial highlights

• Fiscal 2025 gross revenue rose 63% year-over-year to $403.0M; net revenue up 62% to $259.2M; Q4 net revenue was $80.1M, up 79% year-over-year.

• International sales reached $26.3M for fiscal 2025, up 173% year-over-year.

• Adjusted gross profit for Q4 increased 85% to $30.6M; full-year adjusted gross margin was 35%, with Q4 margin at 38%.

• Adjusted EBITDA for Q4 was $9.8M, up 68%–72% sequentially; full-year adjusted EBITDA was $21.9M, up 160% year-over-year.

• Fiscal 2025 net loss decreased 46% to $24.8M, despite a Q4 net loss of $38M due to non-cash mark-to-market adjustments.

• Cash and short-term investments at year-end totaled $84.4M, with no material debt.

Outlook and guidance

• Fiscal 2026 net revenue expected to exceed $300M, with further improvements in adjusted gross margin and EBITDA, and positive free cash flow anticipated.

• Capital expenditures projected below $10M, down from $17M in fiscal 2025.

• Anticipate continued strong international growth, especially in vapes, pre-rolls, and new product categories, supported by innovation and EU-GMP certification.

• Gross margin expected to approach 40% in fiscal 2026, driven by operational improvements and Motif synergies.