Rubicon Organics (ROMJ) investor relations material

Executive summary

• Achieved record net revenue of CAD 59.5 million in 2025, a 22% increase year-over-year, and record Q4 net revenue of CAD 16.5 million, up 16% from Q4 2024.

• Adjusted EBITDA reached CAD 5 million for 2025, a 25% increase from 2024, with Q4 Adjusted EBITDA of CAD 1.2 million.

• Achieved first year of positive operating income (CAD 1.8 million) and net income (CAD 1.1 million), reversing prior year losses.

• Rapid integration and operationalization of the Cascadia facility, increasing cultivation capacity by at least 40% and enabling the company to meet previously unmet demand for premium brands, with first harvests completed in February 2026.

• Maintained leadership as Canada's top premium licensed producer, with significant market share gains in premium flower and vapes.

Financial highlights

• Gross profit before fair value adjustments was CAD 19.5 million in 2025, up 27% year-over-year; Q4 gross profit before adjustments was CAD 5.3 million, up 4%.

• Gross margin before fair value adjustments was 33% for the year and 32% in Q4; would have been 35% and 36% excluding temporary Cascadia impacts.

• Adjusted EBITDA was CAD 5 million, up 25% year-over-year; excluding transformational investments, Adjusted EBITDA was CAD 5.7 million, up 42%.

• Operating expenses increased by CAD 3.7 million year-over-year, remaining stable at 34% of revenue.

• Ended 2025 with CAD 4 million in cash and working capital of CAD 9.86 million; operating cash flow was an outflow of CAD 3 million due to working capital investments.

Outlook and guidance

• Expect margin improvement and further growth in 2026 as Cascadia ramps up, with inflection in revenue, margins, and cash flow anticipated in the second half.

• Projected capital investments of around CAD 5 million in 2026, supported by additional debt financing and potential increase in operating line.

• Anticipate continued double-digit growth in net revenue, gross profit, Adjusted EBITDA, and operating cash flow in 2026.

• Long-term gross margin target remains in the mid-40s%, with ongoing projects to drive toward this goal.

• Gross margin and Adjusted EBITDA may be under pressure in early 2026 due to ongoing investments and ramp-up costs.