TORONTO — Organigram Global Inc. announced its results for the second quarter ended March 31, 2025 (“Q2 Fiscal 2025”). The Q2 Fiscal 2025 results include a full quarter of consolidated financials from the Company’s acquisition of Motif Labs Ltd.\ on December 6, 2024.
Q2 fiscal 2025 highlights
- Gross revenue increased 79% to $102.8 million from $57.4 million in the same prior year period.
- Net revenue increased 74% to $65.6 million from $37.6 million in the same prior year period.
- International revenue increased 177% to $6.1 million from $2.2 million in the same prior year period.
- Adjusted gross margin1 increased to $21.9 million or 33%, from $11.6 million or 31% in the same prior year period.
- Motif integration now expected to exceed original estimate of $10 million to provide approximately $15 million in annual cost synergies.
- Adjusted EBITDA increased to $4.9 million from $(1.0) million in the same prior year period.
- Total cash position of approximately $83.4 million and negligible debt.
- Maintained #1 market share position in Canada — #1 in vapes, #1 in pre-rolls, #1 in milled flower, #1 in hash, #1 in pure CBD gummies, #3 in edibles, #3 in dried flower.
- Acquired Collective Project Limited (“Collective Project”), marking entry into the fast-growing U.S. and Canadian beverage categories, with current distribution in 10 states and six provinces.
- Closed third and final $41.5 million tranche of $124.6 million follow on investment from BAT.
“Our record revenue this quarter reflects the strength of our brands and our ability to execute across both domestic and international markets,” said Beena Goldenberg, Chief Executive Officer. “We are unlocking meaningful global growth potential — from increasing sales into key international markets like Germany, to our entrance into the U.S. hemp-derived beverage space. We expect this momentum to continue as we further strengthen our leadership in Canada and head into the seasonally stronger back half of the year.”
Q2 fiscal 2025 financial overview
Net revenue increased 74% to $65.6 million, from $37.6 million in the second quarter ended March 31, 2024 (“Q2 Fiscal 2024”), primarily driven by contributions from the Motif acquisition, as well as organic growth in recreational and international sales.
Adjusted gross margin was $21.9 million, or 33% of net revenue, compared to $11.6 million, or 31%, in Q2 Fiscal 2024. The increase was primarily attributed to higher average selling prices, product mix, and higher international sales.
The adjusted gross margin of 33% in Q2 Fiscal 2025 reflects Motif’s margin before full synergy realization. Organigram’s standalone adjusted gross margin excluding Motif was 37% in the quarter. Management expects adjusted gross margin to improve over the coming quarters as Motif acquisition related synergies are realized.
Selling, general & administrative (“SG&A”) expenses increased 11% to $22.5 million from $20.3 million in Q2 Fiscal 2024. The increase was attributable to the inclusion of Motif SG&A in our consolidated financials as well as higher trade investments to support the growth of the business.
As a proportion of net revenue, SG&A decreased to 34%, compared to 54% in Q2 Fiscal 2024, reflecting improved operating leverage.
Net income was $42.5 million compared to a net loss of $27.1 million in Q2 Fiscal 2024. The increase in net income from the prior period is primarily attributable to higher fair value gains recognized in relation to top-up-rights of BAT and other financial instruments.
Adjusted EBITDA was $4.9 million compared to $(1.0) million in adjusted EBITDA in Q2 Fiscal 2024. The increase was primarily attributable to higher recreational sales, including Motif contributions, international revenue, and operational efficiency gains.
Net cash used in operating activities was $1.6 million, compared to $8.3 million cash used in Q2 Fiscal 2024. The decrease was primarily attributable to higher adjusted gross margin4 in Q2 Fiscal 2025.
“Our Q2 results continue to demonstrate our growing scale. We have made incremental investments into Motif which have allowed us to further increase the expected synergy realization up to $15 million annualized from our prior estimate of $10 million. Furthermore, through targeted investments in working capital we are in a good position to capitalize on our seasonally stronger months in the second half of the year,” said Greg Guyatt, Chief Financial Officer. “With a roadmap for improving gross margins, and growing contribution from higher-margin international sales, we see a clear path to sustained profitability and continued financial strength as we balance growth and controlling costs.”
Research and product development
Product Development Collaboration (“PDC”)
Organigram and BAT continue to collaborate through the PDC to research and develop innovative technologies in the edible, vape and beverage categories in addition to new disruptive inhalation formats aimed at creating solutions to addressing the biggest consumer pain points that exist in the category today.
Organigram has commercialized the first product resulting from PDC research — Edison Sonics: gummies utilizing Organigram’s Fast Acting Soluble Technology (FAST).
Follow-on Strategic Investment from BAT and creation of “Jupiter” Strategic Investment Pool
On November 6, 2023, Organigram announced a $124.6 million follow-on investment from BAT and the creation of “Jupiter”, a strategic investment pool established to expand Organigram’s geographic footprint and capitalize on emerging growth opportunities.
The final $41.5 million tranche closed in February 2025.
$59 million of the Jupiter fund remains available to support continued expansion in the U.S. and other international markets in compliance with applicable laws.
Jupiter strategic investment pool
Organigram made its first significant European strategic investment to expand its presence in the European cannabis market with a $21 million investment in Sanity Group GmbH, a leading German cannabis company. Our investment in Sanity Group was supported by an expanded supply agreement, making it one of our largest customers. Since the April 1, 2024 expansion of Germany’s medical cannabis program, the market has grown at least 4x and continues to show strong growth potential. Sanity Group is uniquely positioned, having already submitted applications for adult-use recreational pilot projects in Berlin, Frankfurt, Düsseldorf, and Bremen. Approval is pending from the Institute of Food & Nutrition, which oversees the pilot projects.
Jupiter has also deployed US$2 million into Steady State LLC (d/b/a Open Book Extracts), a U.S.-based company specializing in hemp-derived cannabinoid ingredients.
Other international investments
Prior to the establishment of Jupiter, Organigram had already made a US$7 million strategic investment in U.S.-based Phylos Bioscience Inc., a leader in seed-based technology. The Company expects to further leverage lower-cost seed-based technology over time.
On March 31, 2025, Organigram acquired Collective Project, which enabled it to enter the beverage category, with hemp-derived THC beverage distribution in 10 U.S. states and THC beverage distribution in six Canadian provinces.
Organigram is exploring additional U.S. and international investment opportunities that align with the Company’s strategy to establish itself as a global leader.
International sales
In Q2 Fiscal 2025, Organigram achieved $6.1 million in international sales and expects international sales to increase in the second half of fiscal 2025 versus the first half.
Organigram has supply agreements with partners in Germany, U.K., and Australia, and is evaluating additional global partnership opportunities.
Organigram’s investment in Sanity Group resulted in the expansion of their previous supply agreement. The agreement is expected to be further expanded upon Organigram receiving EU-GMP certification of its Moncton facility, expected in the coming months.
Collective Project has begun generating U.S. recreational revenue from hemp-derived THC beverage sales.
Balance sheet and liquidity
As of March 31, 2025, the Company had cash (including restricted cash and short-term investments) of $83.4 million.
About Organigram Global Inc.
Organigram Global Inc. is a NASDAQ Global Select Market and TSX listed company whose wholly-owned subsidiaries include Organigram Inc., a licensed cultivator or cannabis and manufacturer of cannabis-derived goods in Canada. Through its recent acquisition of Collective Project, Organigram Global participates in the U.S. and Canadian cannabinoid beverages markets.
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