Organigram Reports Q1 Fiscal 2026 Financial Results

TORONTO – Organigram Global Inc. delivered a notable performance in its first quarter of fiscal 2026, posting substantial revenue increases and a return to profitability as the Canadian Cannabis producer continues to integrate recent acquisitions and expand select international footprints.

For the quarter ended December 31, 2025, the company reported net revenue of $63.5 million, a 49% rise from $42.7 million in the comparable prior-year period. Gross revenue climbed 46% to $97.3 million. The advances were driven largely by contributions from the Motif Labs acquisition completed earlier, alongside a 51% increase in international revenue to $5 million.

Adjusted EBITDA rose 273% to $5.3 million from $1.4 million, supported by an adjusted gross margin of 38%. Net income reached approximately $20 million, compared with a $27.5 million loss a year earlier, with much of the improvement stemming from positive fair value adjustments on financial instruments [shares and top-up-rights] held by British American Tobacco.

In operations, harvest volumes increased 43%, and Organigram held its position as the top Canadian Cannabis company by market share in several core categories. Management pointed to a newly developed powdery mildew-resistant genetic variety as a step toward more reliable yields and reduced cultivation expenses. On the U.S. side, its hemp-derived THC brands [Collective Project and Fetch] expanded distribution to 11 states, although executives noted potential regulatory headwinds from recent federal hemp policy shifts that could necessitate changes to those lines by the end of calendar 2026 absent any reversal.

New CEO James Yamanaka, who took the helm recently, reiterated confidence in the full-year fiscal 2026 guidance of net revenue exceeding $300 million and positive free cash flow generation. Some market analyses highlighted minor variances, including an adjusted loss per share of $0.02 against certain expectations of $0.01 and revenue figures in U.S. dollar terms coming in below a few consensus views, yet the headline metrics reflected meaningful operational gains.

Compared with peers in the Canadian cannabis space, Organigram’s results stand out for the scale of year-over-year revenue acceleration and the swing to profitability, particularly when viewed against mixed performances elsewhere. For instance, larger players like Tilray Brands and Aurora Cannabis have reported more modest Cannabis-segment growth in their recent quarters, often in the single digits to mid-teens percentage range, with ongoing emphasis on international medical channels and cost controls rather than broad domestic recreational surges.

The quarter underscores Organigram’s ability to capture benefits from consolidation while investing in plant science and efficiency measures. In a sector where regulatory clarity remains uneven, especially in export markets and adjacent U.S. hemp-derived products, the company’s progress will ultimately depend on consistent execution and margin discipline, as well as any favorable policy developments abroad.

As the industry forges ahead under competitive pressures and shifting demand patterns, Organigram’s focus on high-margin categories and innovation positions the company reasonably well for sustained progress, however, broader sector challenges could temper its near-term momentum.