OrganiGram (OGI) investor relations material

Executive summary

• Achieved record quarterly net revenue of $105.8M (CAD 105.8 million), up 49% year-over-year, driven by the consolidation of Sanity Group and strong Canadian operations.

• Adjusted EBITDA reached $13.4M, a 136% increase year-over-year, with margin expansion due to operational efficiencies and international growth.

• Sanity Group contributed approximately €25 million (C$40 million) in revenue since acquisition, supporting international expansion and establishing leadership in Germany.

• International revenue now represents over one-third of total revenue, marking a significant shift in business profile.

• Leadership transition announced with the departure of a key executive after nine years.

Financial highlights

• Net revenue for Q3 was $105.8M (CAD 105.8 million), up 49% year-over-year from $70.8M.

• Adjusted gross margin reached 37%, up from 34% year-over-year and 600 basis points sequentially.

• Adjusted EBITDA rose to $13.4M from $5.7M year-over-year.

• Net income was $105.5M, compared to a loss of $6.3M last year, mainly due to fair value gains on financial assets.

• Free cash flow was an outflow of $3.9M, reflecting increased working capital needs.

Outlook and guidance

• On track for net revenue to exceed $350M for fiscal 2026, with adjusted gross margin and adjusted EBITDA expected to surpass fiscal 2025 levels.

• Sanity Group expected to contribute an average revenue run rate of €25M per quarter, increasing consolidated profitability and international sales volumes.

• Modestly negative free cash flow anticipated for the full year, but positive free cash flow expected in Q4.