Organigram Reports Q3 Fiscal 2026 Financial Results

TORONTO – Organigram Global Inc. released its third-quarter fiscal 2026 results, showing the first full contribution from its recent European acquisition alongside continued strength in the Canadian market. The company reported higher sales and adjusted profitability for the period.

Net revenue reached $105.8 million, up 49% from the same quarter a year earlier. Gross revenue totaled $145.1 million, a 32% increase. Adjusted EBITDA rose to $13.4 million, more than double the $5.7 million recorded in the prior-year period.

The results include contributions from Sanity Group, the German cannabis operator Organigram acquired on April 15. Sanity added approximately €25 million, or about C$40 million, in net revenue during the quarter and performed in line with management expectations. International operations now account for a larger share of overall sales following the deal. In Canada, the company retained the top market-share position in vapes, milled flower and concentrates, while ranking second in flower and pre-rolls.

Net income came in at $105.5 million, compared with a net loss of $6.3 million a year earlier. The swing was driven primarily by a non-cash fair-value gain on preferred shares linked to British American Tobacco’s investment, along with higher revenue and improved gross margins. Gross margin before fair-value adjustments improved to 37% of net revenue.

Cash and short-term investments stood at $11.7 million at quarter-end, with total liquidity of $49.1 million including credit facilities. Management said working-capital needs tied to the larger scale of operations are expected to produce modestly negative free cash flow for the full fiscal year, though positive free cash flow is anticipated in Q4.

The company reaffirmed that fiscal 2026 net revenue is expected to exceed $350 million, with adjusted gross margin and adjusted EBITDA surpassing fiscal 2025 levels. CEO James Yamanaka pointed to the Sanity contribution and operational improvements in Canada as key drivers of the quarter’s performance. CFO Greg Guyatt noted the stronger margin profile and the outlook for the remaining quarter.

Organigram’s quarter reflects the immediate scale impact of the Sanity acquisition on revenue and adjusted EBITDA, while the Canadian business maintained category leadership. The large net-income figure is tied mainly to a non-cash revaluation, and the revised free-cash-flow outlook highlights the working-capital demands of rapid growth. Highly Capitalized Network-HCN, along with the company’s investors, will be watching fourth-quarter cash generation and further European execution as the next markers of progress.