- Organigram (TSX:OGI) reported its Q1 2026 revenue and profit surged, with net revenue up 49 per cent to $63.5M and adjusted EBITDA up 273 per cent year-over-year
- Organigram strengthened its #1 market position in Canada, leading in vapes, milled flower, and concentrates while expanding U.S. distribution to 11 states
- Operational breakthroughs boosted efficiency, including major yield improvements and a new rapid powdery mildew resistance screening technology
- Organigram stock (TSX:OGI) last traded at CC$C$2.17
Organigram (TSX:OGI) reported strong growth across all major financial and operational metrics in its first quarter ended December 31, 2025.
The company stated that it delivered significant year-over-year gains in revenue, profitability, and production efficiency, while expanding its U.S. footprint and advancing key innovations in cultivation.
Revenue surges on Motif acquisition and international growth
Organigram posted gross revenue of C$97.3 million, up 46 per cent from the same period last year. Net revenue rose 49 per cent to C$63.5 million, driven largely by contributions from the Motif Labs Ltd. acquisition as well as stronger international demand.
International sales reached C$5.0 million, marking a 51 per cent increase compared to Q1 fiscal 2025.
The company continues to await EU‑GMP certification for its Moncton facility, a crucial step for expanding access to European medical markets. Organigram is preparing follow‑up materials in response to feedback received from regulators in January.
Profitability strengthens as margins improve
Adjusted Gross Margin grew to C$23.9 million, representing 38 per cent of net revenue—an improvement from 33 per cent in the prior year’s quarter. The gains were supported by operational efficiencies, higher yields, synergies from the Motif integration, and elevated international sales.
Adjusted EBITDA rose sharply to C$5.3 million, a 273 per cent increase from the C$1.4 million reported in Q1 Fiscal 2025.
Net income swung dramatically into positive territory, reaching C$20.0 million compared to a net loss of C$27.5 million last year. The improvement was largely tied to favourable fair value changes related to British American Tobacco’s preferred shares, top‑up rights, and other financial instruments.
Market leadership solidifies across key categories
Organigram said it maintained its position as Canada’s #1 cannabis company by market share, delivering category-leading results including:
- #1 in vapes
- #1 in milled flower
- #1 in concentrates
- #2 in pre-rolls
- #3 in edibles
- #3 in dried flower
These rankings reflect continued momentum in the recreational market and strong consumer response to the company’s diversified brand portfolio.
Operational advances boost yield and reduce risk
The company achieved a breakthrough in powdery mildew resistance screening, reducing identification time from months to days. The proprietary process will allow Organigram to select resistant cultivars earlier, avoid unnecessary investment in vulnerable genetics, and breed resistance directly into commercial strains—enhancing yield stability and lowering production costs.
Production also saw meaningful improvement: kilograms harvested increased 43 per cent to 28,645, supported by nutrient and environmental enhancements that further reduced per‑unit costs.
U.S. expansion continues through new distribution partnerships
Organigram expanded its U.S. presence by launching its Collective Project and Fetch brands into Illinois and Wisconsin, bringing its retail footprint to 11 states. The company is leveraging third‑party distribution partnerships to scale its presence while avoiding the regulatory complexities of plant‑touching operations in the U.S. cannabis sector.
Cash position and liquidity
As of December 31, 2025, the company reported C$63.0 million in total cash, including restricted cash and short‑term investments.
Operating cash flow before working capital changes improved to C$0.3 million, compared to a use of C$6.3 million one year earlier. However, higher investment in working capital resulted in overall operating cash usage of C$16.0 million.
Word from on high
“As I step into the role of CEO, I’m encouraged by the strength of Organigram and our leadership position in Canada,” James Yamanaka, Organigram’s CEO said in a news release. “Over the past 25 days, I’ve toured our facilities and met with many of my new colleagues. What’s clear is that we have a competitive core business, supported by a foundation of innovation and plant science, alongside a continued focus on improving efficiency and scale. As our international presence grows, disciplined execution and operating efficiency will drive profitability.”
About Organigram
Organigram is a licensed Canadian producer of cannabis, cannabis-derived products and cannabis infused edibles. Its brand portfolio includes Edison, Holy Mountain, Big Bag O’ Buds, SHRED, SHRED’ems, Monjour, Laurentian, Tremblant Cannabis and Trailblazer.
Organigram stock (TSX:OGI) last traded at CC$C$2.17 but has lost 13.20 per cent since this time last year.
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