OGI · Organigram Global Inc.

Organigram Global Inc. reported its second quarter fiscal 2026 results for the period ended March 31, 2026. Net revenue decreased 9% year-over-year to $59.8 million, primarily driven by lower vape and infused pre-roll sales. Gross margin before fair value adjustments fell to 25% from 30%, impacted by changes in product mix and higher returns provisions. Adjusted EBITDA declined 82% to $0.9 million, reflecting lower recreational revenue and flat operating expenses as a percentage of net revenue. The company recorded a net loss of $0.9 million compared to net income of $42.5 million in the prior year, largely due to lower fair value gains on derivative liabilities and preferred shares, and a $5.8 million impairment on U.S. hemp-derived products business. On the operational side, Organigram achieved a record quarterly harvest of over 32,000 kg and the highest average THC potency at its Moncton facility. Subsequent to quarter end, the company completed the acquisition of Sanity Group GmbH, a German cannabis leader, which is expected to generate approximately €25 million in average quarterly revenue. Management updated fiscal 2026 guidance to reflect the acquisition, now projecting net revenue exceeding $350 million, Adjusted EBITDA and Adjusted Gross Margin exceeding fiscal 2025 levels, free cash flow approximately break even, and capital expenditures under $10 million. CEO James Yamanaka noted that operational changes and product enhancements are stabilizing performance, and the company expects stronger execution in the second half of fiscal 2026.