TORONTO — Organigram Global Inc. reported results for the third quarter ended June 30, 2025 (“Q3 Fiscal 2025” or “Q3”).
Q3 fiscal 2025 highlights
- Record Gross Revenue: $110.2 million (+73% year-over-year, +7.2% sequential).
- Record Net Revenue: $70.8 million (+72% year-over-year, +7.9% sequential).
- International Revenue: $7.4 million (+208% year-over-year, +21% sequential).
- Adjusted EBITDA: $5.7 million (+64% year-over-year, +16% sequential).
- Free Cash Flow: $5.0 million versus ($4.8) million in the prior year period.
- Motif Synergies: $4.2 million to date, approximately $11 million annualized; on track to hit $15 million target within 24 months of acquisition.
- Total Cash: $85.9 million, including $35.9 million of unrestricted cash; and negligible debt.
- #1 Market Share in Canada: #1 in vapes, #1 in pre-rolls, #1 in milled flower, #1 in concentrates, #3 in edibles, #3 in dried flower.
- Canadian Beverage Growth: Expanded distribution in Alberta, Saskatchewan, and Manitoba.
- U.S. Expansion: Began generating U.S. revenue, expanded distribution into new states and gained important key account listings; launched U.S. DTC (direct-to-consumer) website expanding hemp-derived THC beverage availability to 25 states subsequent to quarter end.
- Record Moncton Harvest: of 24,210 kilograms, driven by capacity enhancing projects and seed-based cultivation; entire Moncton facility harvest averaged over 29% THC potency.
“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.”
Third quarter fiscal 2025 financial overview
Net revenue increased 72% to $70.8 million, from $41.1 million in the third quarter ended June 30, 2024 (“Q3 Fiscal 2024”), primarily driven by contributions from the Motif Labs Ltd. (“Motif”) acquisition and increased international sales.
Adjusted gross margin was $24.2 million, or 34% of net revenue, compared to $14.6 million, or 36%, in Q3 Fiscal 2024.
Organigram’s standalone adjusted gross margin excluding Motif was approximately 37% in Q3. Management expects adjusted gross margin to improve over the coming quarters as Motif acquisition-related synergies are realized.
SG&A increased 70% to $24.5 million from $14.4 million in Q3 Fiscal 2024. The increase was attributable to the inclusion of Motif SG&A in Organigram’s consolidated financials as well as higher trade investments to support the growth of the business.
As a proportion of net revenue, SG&A remained flat at 35%, compared to 35% in Q3 Fiscal 2024.
Included in SG&A was an incremental investment of $1.2 million into ERP versus the prior year and higher amortization of $1.6 million associated with Motif and Collective Project Limited (“Collective Project”) acquisitions.
Net loss was $6.3 million compared to net income of $2.8 million in Q3 Fiscal 2024. The decrease in net income from the prior period is primarily attributable to higher fair value changes recognized in relation to the preferred shares and top-up-rights held by British American Tobacco p.l.c (“BAT”), and other financial instruments.
Adjusted EBITDA was $5.7 million compared to $3.5 million in adjusted EBITDA in Q3 Fiscal 2024. The increase was primarily attributable to higher recreational revenue, including Motif contributions, and higher international revenue.
Net cash from operating activities was $14.6 million, compared to cash used of $3.7 in Q3 Fiscal 2024. The increase was primarily attributable to improved working capital utilization.
“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.”
International sales
In Q3 Fiscal 2025, Organigram achieved $7.4 million in international sales compared to $2.4 million in the same prior year period, and expects to continue growing its international sales over time.
Organigram continues to await EU-GMP certification for its Moncton facility.
In Q3 Fiscal 2025, Organigram began generating U.S. recreational revenue from hemp-derived THC beverage pursuant to the acquisition of Collective Project.
Balance sheet and liquidity
As of June 30, 2025, the Company had total cash (including restricted cash and short-term investments) of $85.9 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.
