Organto Foods Inc.

Organto said Q2 2026 sales were $27.7 million, up 61% year over year, and first-half sales were $53.3 million, up 73%. Gross profit was a record $2.1 million in the quarter, up 65%, and $3.9 million year to date, up 63%; gross profit margin was 7.5% in Q2 and 7.3% year to date. EBITDA was positive $400,000 in Q2 versus negative $500,000 in the prior year, and year-to-date EBITDA was $500,000 versus negative $200,000. Cash operating costs were $1.7 million, or 6.3% of sales, down from 6.8% a year earlier. Management said the business is now running at an annualized sales rate of over $100 million and reiterated a focus on getting operating cash costs below 5% of sales over time. On the balance sheet, the company ended with $5.4 million of cash, $1 million of restricted cash, $15.3 million of working capital, no long-term debt, and $16.4 million of equity; it also expanded its Rabobank flexible facility from EUR 4 million to EUR 7 million.

Steve Bromley emphasized that the first half was a record period marked by broad operational expansion, including new growers, retailers, countries, shipping lanes and internal capabilities. He framed the company as being at an inflection point: the core platform is stabilized, EBITDA positive, and the next phase is about expanding the product mix, adding higher-margin categories, and pursuing North America, non-fresh, and value-added opportunities. His tone was upbeat and confident, but he also stressed execution, saying the strategic growth pipeline is growing and that the company is early in a longer digital and expansion journey.

Darryl Bergman focused on execution, margin discipline and operating leverage. He said the company will continue scaling the European Fresh platform while managing gross margin through supply chain leverage, product mix, pricing and risk management, and driving operating cash costs toward below 5% of sales. He also highlighted the use of technology and AI to improve efficiency, transparency and waste reduction, and said the company is strengthening the organization with added resources and a stronger operating cadence.

Analysts asked whether growth was coming more from new or existing customers, and management said roughly 60% of this year’s growth came from new customers and about 40% from existing customers. They were also asked whether two straight EBITDA-positive quarters can continue; management said yes in trend, while declining to give specific guidance. Questions on inflation and fuel costs drew commentary that demand for organic and sustainable foods has remained resilient, while the company has been passing through pricing where possible, shifting volumes among shipping lines, and working closely with growers and customers to protect margins.