Rubicon Organics (ROMJ) Q3 2025 earnings summary

Executive summary

• Achieved record Q3 net revenue of CAD 15.6 million, up 16% year-over-year, and YTD net revenue of CAD 43.0 million, up 25% year-over-year.

• Sixth consecutive quarter of positive Adjusted EBITDA, reaching CAD 1.7 million for Q3 and CAD 3.8 million for the nine-month period.

• Net income for Q3 was CAD 2.8 million, compared to a net loss of CAD 0.2 million in Q3 2024.

• Cascadia Facility received Health Canada license, began operations, and is expected to drive future growth.

• Expanded vape portfolio and completed first international branded shipment to Australia, with test shipments to Poland and the U.K.

Financial highlights

• Net revenue of CAD 15.6 million in Q3, up 16% year-over-year.

• Gross profit before fair value adjustments was CAD 5.8 million (33.7% margin), up from CAD 4.4 million (32.4%) last year.

• Adjusted EBITDA was CAD 1.7 million, slightly down from CAD 2 million last year due to increased SG&A.

• Operating cash flow was positive at CAD 0.5 million for the quarter; cash balance at quarter-end was CAD 6.9 million.

• Working capital increased to CAD 24.1 million as of September 30, 2025.

Outlook and guidance

• Expect short-term gross margin pressure as Cascadia ramps up, with improvement anticipated in the second half of 2026.

• Targeting gross margins in the mid-40% range within 12-18 months.

• EBITDA margins expected to return to mid-teens and longer-term to at least 20% as scale and efficiencies are realized.

• Forecasting continued growth in net revenue and Adjusted EBITDA, excluding Cascadia startup costs.

• Cascadia Facility expected to contribute revenue in the first half of 2026.