Organigram Global Inc. (OGI) reported record net revenue of $80.1 million for the fourth quarter of 2025, a 79% year‑over‑year increase from $44.7 million in Q4 2024. Adjusted gross margin rose to 38% from 37% in the prior year, reflecting a higher‑margin product mix and cost efficiencies from recent operational upgrades. Adjusted EBITDA reached $9.8 million, up 68% from $5.9 million in Q4 2024, while the company posted a net loss of $38.0 million, largely attributable to non‑cash changes in the fair value of derivative liabilities, preferred shares, and other financial assets.
Segment performance shows that recreational products generated $66.4 million of the quarter’s revenue, international sales contributed $9.5 million, and other revenues added $4.1 million. The strong growth in recreational sales is driven by expanded distribution in Canada and a new line of infused pre‑rolls, while international revenue growth reflects the launch of the FAST™ line in the U.S. and increased demand in Germany and Australia. The higher‑margin beverage and extraction businesses also contributed to the margin expansion, as the company’s acquisition of Motif Labs in December 2024 has accelerated product development and market penetration.
The $38.0 million net loss masks a $21.9 million adjusted EBITDA, underscoring the impact of one‑time charges. Non‑cash items, including a $12.5 million fair‑value adjustment to derivative liabilities and a $3.2 million inventory write‑down, accounted for the majority of the loss. Management noted that these items are expected to reverse in the next fiscal year, and the company’s cash position remains strong with $120 million in liquidity.
Looking ahead, Organigram projects full‑year net revenue to exceed CAD 300 million in fiscal 2026, up from $259.2 million in 2025. The company expects continued gross‑margin improvement to 40% and free‑cash‑flow generation as integration synergies from the Motif acquisition mature. James Yamanaka will assume the CEO role in January 2026, bringing global experience from British American Tobacco and signaling a renewed focus on international expansion and product innovation.
Market reaction was positive, with the stock rising 3.33% in pre‑market trading. Investors were encouraged by the record revenue, the sharp rise in adjusted EBITDA, and the optimistic revenue outlook for 2026. Peter Amirault, Executive Chair, highlighted the company’s “highest gross margin and adjusted EBITDA since 2019,” while President Tim Emberg emphasized disciplined capacity expansion. Yamanaka’s appointment was viewed as a strategic move to accelerate global growth.
In summary, Organigram’s Q4 and full‑year 2025 results demonstrate strong top‑line growth and margin expansion, but the net loss reflects significant non‑cash charges. The company’s forward‑looking guidance and leadership transition position it for continued market leadership and profitability in the coming year.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.