Rubicon Organics Inc.

Q2 2026 net revenue was $18.5 million, up 23% year over year and 35% sequentially. Gross margin before fair value adjustments was 30%; excluding pre-revenue Cascadia operating costs, gross margin would have been about 36%, versus 29% on that same adjusted basis last quarter, according to the Q&A. Adjusted EBITDA was $1.1 million, compared with $1.4 million in the prior-year period. SG&A was $6.9 million, up $2.0 million year over year and $900 thousand sequentially. The company ended the quarter with $3 million in cash and $20.9 million in working capital. Cascadia contributed about $450 thousand of revenue late in Q2, and management said $5 million of revenue came from Cascadia-derived products. Looking ahead, management expects revenue and adjusted EBITDA to progressively ramp through Q3 and Q4 2026, with benefits from the expanded platform becoming more visible in the second half of 2026 and notably into 2027. International revenue is expected to continue growing in H2 and average approximately 10% of total fiscal 2026 revenue.

Margaret Ruth Brodie framed the quarter as proof that Rubicon’s premium-focused strategy is working, highlighting record revenue, market share gains, and stronger execution at Pacifica. She said the company is moving from building capacity to maximizing prior investments, with Cascadia now online and international certifications in place to support global expansion. Her tone was confident but measured: she acknowledged Cascadia is still in the ramp-up phase and said more of the platform’s benefit should show up in the second half of 2026 and into 2027.

Glenn Ibbott emphasized that Q2 revenue growth was driven by higher supply availability across premium brands, especially Pacifica’s 20% higher yields in the first half of 2026 versus H1 2025. He noted gross margin before fair value adjustments was 30%, or roughly 36% excluding Cascadia pre-revenue costs, and said SG&A rose to $6.9 million because of planned investments in talent, brand development, international initiatives, and regulatory/insurance costs. He also cited $3 million in cash, $20.9 million in working capital, and about $2.6 million of CapEx in the first half of 2026, mainly for efficiency and yield/capacity projects. He said the company expects revenue and adjusted EBITDA to ramp through Q3 and Q4 and that margin expansion should continue as scale improves.

Analysts focused on how Rubicon drove Pacifica’s yield improvement, whether gross margins can move meaningfully higher, and how much CapEx remains for 2026. Management said the 20% yield gain was a mix of modest facility changes, cultivation/process improvements, and genetics work, and that some future yield investments will be modest while others may require more CapEx. On margins, management said it has internal gross margin targets that “start with a 4,” pointing to automation, in-house hydrocarbon extraction, yield gains, and portfolio optimization as levers. Questions on international expansion centered on the UK and newly obtained certifications; management said Cascadia certification unlocks EU GMP pathways, expects international revenue to rise, and sees up to 4 international markets by year-end.