Rubicon Organics (ROMJ) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 2025 net revenue of $15 million, up 24% year-over-year, with gross profit of $5.9 million and adjusted EBITDA of $1.4 million, marking the fifth consecutive quarter of positive adjusted EBITDA.

• Generated YTD net revenue of $27.4 million, up 30% year-over-year, and YTD adjusted EBITDA of $2.1 million.

• Completed $4.5 million private placement, finalized Hope facility acquisition, and launched new premium resin vape products.

• Growth outpaced the total market, driven by strong performance in vapes, pre-rolls, dried flower, and edibles.

• Won Standard Producer of the Year at Grow Up awards and named Glen Ibbott as Interim CFO.

Financial highlights

• Net revenue reached $15 million, gross profit before fair value adjustments was $5.1 million (34.2% margin), up from $3.7 million (30.2%) year-over-year.

• Adjusted EBITDA for Q2 2025 was $1.4 million, up from $900,000 in Q2 2024.

• Net profit for Q2 2025 was $770,000, compared to a net loss of $450,000 in Q2 2024.

• Generated $800,000 in operating cash flow, compared to a $300,000 outflow in Q2 2024.

• Ended the quarter with $7.3 million in cash and $18.7 million in working capital.

Outlook and guidance

• 2025 targets unchanged: forecasting growth in net revenue and adjusted EBITDA from core business, with initial Hope facility costs ($1M–$2M) impacting EBITDA; Hope revenues expected in 2026.

• Hope Facility expected to add 4,500kg annual capacity, with licensing approval anticipated by year-end and revenue contribution in H1 2026.

• Expansion to increase supply capacity by over 40%, with international channels targeted for 2026.

• Plans to acquire up to 2,000kg incremental biomass and expand through strategic partnerships.

• Focused on securing premium supply, building brand trust in Canada, and leading in genetics innovation.