Organigram Global Q4 Earnings Call Highlights

Organigram Global (NASDAQ:OGI) outlined record quarterly and full-year results for fiscal 2025 and set expectations for continued growth in fiscal 2026, with management pointing to market share leadership in Canada, rising international demand, and improving margins driven by cultivation and integration initiatives.

Record revenue and improving profitability

President of Organigram Canada Tim Emberg said fiscal 2025 was a “redefining year,” highlighted by achieving the number one market share position in Canada and accelerating international growth. In the fourth quarter, the company reported record quarterly gross and net revenue and its highest adjusted gross margin and adjusted EBITDA since the end of 2019.

Chief Financial Officer Greg Guyatt said fourth-quarter net revenue increased 79% to CAD 80.1 million from CAD 44.7 million a year earlier, while full-year net revenue rose 62% to CAD 259.2 million. He attributed the growth to contributions from the Motif and Collective Project acquisitions, coast-to-coast Canadian distribution, and the scale-up of international sales.

Adjusted gross profit in Q4 increased 85% to CAD 30.6 million, while full-year adjusted gross margin was 35%, in line with company guidance and up 100 basis points from the prior year. In Q4, adjusted gross margin increased to 38%, up 400 basis points sequentially from Q3. Guyatt said the company expects further improvement in fiscal 2026, with full-year margins higher than fiscal 2025 and margins “approaching the 40% range” over time.

Adjusted EBITDA reached a record for the company, with Q4 adjusted EBITDA of CAD 9.8 million (up 72% sequentially and 69% year-over-year) and full-year adjusted EBITDA of CAD 21.9 million, up 160% from fiscal 2024. Guyatt noted that Q4 adjusted EBITDA exceeded the full-year fiscal 2024 total.

Market share leadership in Canada and product roadmap

Emberg said Organigram held the number one market position in Canada in fiscal 2025 with 11.9% market share. He added that three brands—SHRED, BOXHOT, and Big Bag O’ Buds—ranked among the top 10 cannabis brands by retail sales during the year. Organigram was number one in Ontario, British Columbia, and Alberta, while ranking fourth in Quebec but “continu[ing] to grow.”

The company described particularly strong share in several provinces, including 34.2% in New Brunswick and 23.7% in Newfoundland, alongside gains in Saskatchewan and Nova Scotia. Emberg said category performance was mixed, with gains in whole flower, edibles, beverages, non-hash concentrates, and infused pre-rolls, while competition increased in vapes, milled flower, and overall pre-rolls.

Looking into fiscal 2026, management highlighted planned product launches and operational actions intended to lift margins. Emberg pointed to:

• A new family of coated infused pre-rolls
• New all-in-one vape hardware
• New beverage formats and flavors, including the planned launch of SHRED soda

He said the Winnipeg beverage manufacturing line is ramping up and is expected to begin production in the coming months.

Emberg also noted a temporary early fiscal 2026 market share impact tied to an eight-week BC General Employees’ Union strike that ended on October 26, which restricted shipments into British Columbia for most large licensed producers. He said the company is already seeing a rebound toward historical share.

Motif Labs integration and operational improvements

Management repeatedly highlighted the Motif Labs acquisition as a key driver of fiscal 2025 results. Emberg said the deal added a centralized distribution hub in Ontario and enhanced extraction and production facilities for vapes and pre-rolls, giving Organigram five facilities across Canada and “greater control” of the supply chain.

Guyatt said the company achieved approximately CAD 7.1 million in cost savings in fiscal 2025, which annualizes to more than CAD 15 million, consistent with prior targets. He added that some offsets included higher biomass costs, a temporary disruption to on-time, in-full (OTIF) performance related to the Motif ERP integration, and higher benefits costs for legacy Motif employees. He also said some savings tied to lower consumables and production costs would flow through earnings as associated inventory is sold.

Separately, Emberg described cultivation initiatives at the Moncton facility that increased yields and capacity without expanding the facility footprint, citing advanced cultivation practices, improved plant care, and seed-based cultivation. In Q&A, he said the company is already realizing roughly a 14,000 kg annual capacity increase from changes including high-density LED lighting, room turnover timelines, nutrient programs, and seed-based growth, with expectations for further capacity growth in fiscal 2026.

International growth and U.S. hemp-derived portfolio

International expansion was a central theme of the call. Emberg said fiscal 2025 international sales reached a company record of CAD 26.3 million, up 171% from CAD 9.7 million in fiscal 2024, supported by a partnership with Sanity Group in Germany and flower shipments to the U.K. and Australia. Guyatt added that Q4 international sales were CAD 9.7 million, up 31% sequentially and 137% year-over-year.

Emberg said the company commenced U.S. sales of hemp-derived THC beverages under The Collective Project in Fetch brand, available in brick-and-mortar locations in 12 states and online in 24 states through a direct-to-consumer platform. Organigram also launched happly, a functional edibles lifestyle brand using the company’s FAST technology for faster onset and predictable effects.

Management discussed regulatory uncertainty in the U.S., citing a provision in the U.S. Federal Funding Act that would effectively ban hemp-derived THC by November 13, 2026. Emberg said the company is monitoring efforts to repeal, replace, or delay the amendment, but added Organigram’s U.S. business does not currently represent a significant share of revenue and the company does not expect a material adverse economic impact if the provision stands.

Outside the U.S., management said international product expansion is expected to include branded vapes and gummies in Australia and expanded flower exports. Emberg also provided an update on the company’s pending EU-GMP application, noting that in October 2025 Organigram submitted additional clarifying information as requested by the regulator and is awaiting a determination.

Outlook: revenue above CAD 300 million and free cash flow expected

Guyatt said Organigram expects very strong year-over-year growth in Q1, while anticipating a seasonal sequential decline versus the typically strong Q4. For fiscal 2026, management projected:

• Net revenue expected to exceed CAD 300 million
• Further improvements in adjusted gross margin and adjusted EBITDA versus fiscal 2025
• Free cash flow generation in fiscal 2026
• Capital expenditures expected to be less than CAD 10 million

On liquidity, Guyatt said total cash and short-term investments were CAD 84.4 million at year-end, including CAD 28.2 million unrestricted, and that the company continues to evaluate its capital structure for long-term flexibility.

Executive Chair Peter Amirault closed the call by crediting the Motif integration as an “outlier” versus typical M&A outcomes and said the company will remain focused on margins and SG&A discipline. Amirault also thanked outgoing CEO Beena Goldenberg and said the company expects new CEO James Yamanaka to join in early January, citing his global strategy background and experience scaling international businesses.

About Organigram Global (NASDAQ:OGI)

Organigram Global Inc (NASDAQ: OGI) is a licensed producer of cannabis and hemp products headquartered in Moncton, New Brunswick, Canada. Founded in 2013, the company operates a state-of-the-art cultivation and manufacturing facility spanning more than one million square feet. Organigram holds licenses from Health Canada to produce and sell both medical and adult-use cannabis, and it pursues Good Manufacturing Practice (GMP) certification to support international exports.

The company’s product portfolio encompasses dried flower, pre-rolled joints, cannabis oils, capsules and soft gels, as well as vapourizer cartridges and extracts.