Organigram Global Inc.

Q3 net revenue was $105.8 million, versus $70.8 million a year ago, up 49% year over year. Adjusted gross margin was 37%, up 300 basis points year over year and 600 basis points sequentially. Adjusted EBITDA was a record $13.4 million, versus $5.7 million in the prior year period. Net income was $105.5 million versus a loss of $6.3 million a year ago, driven mainly by $105.8 million of fair value gains. Cash provided by operating activities before working capital changes was $6.2 million, operating cash flow was an outflow of $4.3 million, and free cash flow was an outflow of $3.9 million. As of June 30, cash and cash equivalents were $11.7 million and total liquidity was $49.2 million. For fiscal 2026, management continues to expect revenue above $350 million, adjusted gross margin and adjusted EBITDA to meaningfully exceed fiscal 2025, and negative full-year free cash flow due to working capital needs; they still expect positive free cash flow in Q4.

James Yamanaka framed the quarter as a turning point, saying Organigram is now larger, more diversified, and increasingly international after nearly a full quarter of Sanity contribution. He highlighted recovery efforts in Canada, including a roughly 10% SKU reduction, stronger vape and infused pre-roll trends, and continued strength in flower, beverages, and concentrates. His tone was constructive and confident, emphasizing that the company is building a cash-generating global cannabis business and that the strategy is starting to show up in financial results.

Greg Guyatt emphasized that the quarter delivered the largest revenue in company history, improved adjusted gross margin, and record adjusted EBITDA. He pointed to Sanity as the main revenue and margin driver, while also noting better Canadian operations, lower G&A as a percentage of revenue at about 19%, and SG&A down to 31% of revenue from 34% a year ago. On cash flow, he said working capital investments, including inventory to address German demand and timing of sales, pressured operating cash flow and free cash flow, but underlying cash generation improved; cash and cash equivalents were $11.7 million and total liquidity was $49.2 million.

Analysts focused on Sanity integration, international growth, Germany margin dynamics, EU-GMP timing, and whether German supply issues were due to quality or regulatory pushback. Management said Sanity is performing in line with expectations, Germany has seen limited price compression so far, and demand remains strong, though EU-GMP flower supply is tight. They also said they expect minimal impact from Germany’s reimbursement changes and do not have a timeline for EU-GMP approval at Moncton, but believe certification would be meaningfully positive for margins.