Organigram Global Inc.

Net revenue was $105.8 million, versus $70.8 million in the prior year period, a 49% increase. 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 a year ago, up 136%. Net income was $105.5 million, compared with a loss of $6.3 million in the prior year period, driven mainly by $105.8 million of fair value gains on derivative liabilities, preferred shares, and other financial assets. Cash provided by operating activities before working capital changes was $6.2 million, while free cash flow was an outflow of $3.9 million. Cash and cash equivalents were $11.7 million and total liquidity was $49.2 million as of June 30. For fiscal 2026, management continues to expect revenue to exceed $350 million, adjusted gross margin and adjusted EBITDA to meaningfully exceed fiscal 2025 levels, negative full-year free cash flow due to working capital needs, and positive free cash flow in Q4.

James Yamanaka framed the quarter as a turning point, saying Organigram is now a larger, more diversified, and more international company, with Sanity already reshaping the business profile. He emphasized that Canada is still the core, but Europe now looks like the largest medium- and long-term growth opportunity, and that the company is prioritizing fewer, stronger brands rather than broad SKU proliferation. His tone was constructive and confident, especially around recovery in vapes/pre-rolls, strong flower performance, and the expectation that Sanity and international expansion will support higher margins and profitability.

Greg Guyatt highlighted record revenue and record adjusted EBITDA, plus a 37% adjusted gross margin that improved both year over year and sequentially. He said G&A was $20.6 million and sales and marketing was $12.1 million, with SG&A at 31% of net revenue, down from 34% a year ago. He also noted cash provided by operating activities before working capital changes of $6.2 million, free cash flow of negative $3.9 million, and liquidity of $49.2 million, explaining that working capital investments tied to scale, Sanity integration, and German demand timing weighed on cash flow. He reiterated guidance for revenue above $350 million, better gross margin and EBITDA than fiscal 2025, negative full-year free cash flow, and positive Q4 free cash flow.

Analysts focused on what Organigram has learned from consolidating Sanity, how capacity is being balanced between Canada and international markets, and whether Germany is seeing price compression or margin pressure. Management said Sanity has changed the company’s profile toward international growth, the cultural fit is good, and most early integration issues have been sorted out, while also stressing that they still want to protect Canada’s leadership position. On Germany, Greg said demand is strong, price compression has been minimal, and margins are currently in line with expectations; on EU-GMP, James said there was no new timing update and they are waiting for the regulator, though approval would meaningfully improve margins by removing the need for a European processor.