Organigram Reports Record Third Quarter Fiscal 2025 Results

Executive Summary

• Organigram Global Inc. reported record financial results for the third quarter ended June 30, 2025, driven by the acquisition of Motif Labs and Collective Project, as well as strong international expansion.
• The company achieved record Gross Revenue of $110.2 million (+73% YoY) and Net Revenue of $70.8 million (+72% YoY), with Adjusted EBITDA reaching $5.7 million (+64% YoY).
• International revenue surged 208% year-over-year to $7.4 million, and the company began generating U.S. recreational revenue from hemp-derived THC beverages following the Collective Project acquisition.

Key Details

• Revenue Performance:
  • Gross Revenue: $110.2 million (up 73% YoY, up 7.2% sequential).
  • Net Revenue: $70.8 million (up 72% YoY, up 7.9% sequential).
  • International Revenue: $7.4 million (up 208% YoY, up 21% sequential).
• Profitability & Cash Flow:
  • Adjusted EBITDA: $5.7 million (up 64% YoY, up 16% sequential).
  • Free Cash Flow: $5.0 million (compared to negative $4.8 million in the prior year period).
  • Net Loss: $6.3 million (compared to net income of $2.8 million in Q3 Fiscal 2024), primarily due to fair value changes related to British American Tobacco preferred shares and top-up rights.
  • Adjusted Gross Margin: $24.2 million (34% of net revenue), compared to $14.6 million (36%) in Q3 Fiscal 2024. Standalone adjusted gross margin excluding Motif was approximately 37%.
• Balance Sheet & Liquidity:
  • Total Cash: $85.9 million (including $35.9 million unrestricted cash and short-term investments).
  • Debt: Negligible debt; long-term debt reduced to zero.
  • Working Capital: $170.5 million.
  • Total Assets: $564.6 million (up 38% from September 30, 2024).
• Operational Highlights:
  • Motif Synergies: $4.2 million realized to date, with an annualized run rate of approximately $11 million; on track to hit the $15 million target within 24 months of acquisition.
  • Market Share: Maintained #1 market share in Canada for vapes, pre-rolls, milled flower, and concentrates; #3 in edibles and dried flower.
  • Production: Record Moncton harvest of 24,210 kilograms with an average potency of over 29% THC.
  • U.S. Expansion: Began generating U.S. revenue from hemp-derived THC beverages; expanded distribution into new states and gained key account listings; launched U.S. DTC website covering 25 states post-quarter end.
  • Canadian Beverage Growth: Expanded distribution in Alberta, Saskatchewan, and Manitoba.
• Expense Breakdown:
  • SG&A Expenses: $24.5 million (up 70% YoY), driven by Motif consolidation and higher trade investments. SG&A remained flat as a percentage of net revenue at 35%.
  • Included $1.2 million incremental investment in ERP and $1.6 million higher amortization associated with Motif and Collective Project acquisitions.
• Product Introductions:
  • SHRED Max10 Party Pack (100mg THC per container).
  • New strains: Blueberry Dream, UK Cheddar Cheese, and Comboz.
  • Return of OG SHRED blend.
  • BOXHOT IPRs (Pear Herer & Strawberry Diesel).
  • Trailblazer Blunts (tea leaf-based paper).
  • Rizzlers Vapes (Lime Frizz & Passion Plunge).

Notable Quotes

• “In Q3, we delivered our second consecutive quarter of record revenue driven by the acquisition of Motif, Collective Project, and a further optimization of our product and brand portfolio,” said Beena Goldenberg, CEO of Organigram. “With our strong Canadian market leadership now in place, we are committed to bringing our Canadian successes, underpinned by innovation and a commitment to quality, to international markets. We have grown our export business, expanded into the US, and are set to launch new brands internationally, all building towards our ambition of becoming a truly global cannabis player.”
• “In Q3 we delivered solid revenue and adjusted EBITDA growth sequentially and year-over-year while making significant progress toward the full integration of our recent acquisitions,” said Greg Guyatt, CFO of Organigram. “As our business continues to scale domestically and abroad, and the realization of cost synergies related to our Motif acquisition begin to positively impact future earnings, we are confident in our trajectory toward sustained profitability and free cash flow in the near-term.”