Rubicon Organics (ROMJ) Q1 2026 earnings summary

Executive summary

• Q1 2026 net revenue reached CAD 13.7 million, up 11% year-over-year, driven by growth in flower and pre-rolls despite B.C. distributor strike impacts.

• Cascadia facility is fully operational, with first harvests showing strong THC potency and yield, and first commercial sales expected by mid-2026; GACP certification achieved.

• Expanded international presence with the 1964 brand launch in the U.K. medical cannabis market.

• Maintained #1 national market share in premium flower (10.3%) and strong positions in pre-rolls, vapes, and topicals.

Financial highlights

• Net revenue for Q1 2026 was CAD 13.7 million, up 11% from Q1 2025, driven by strong performance in the 1964 brand.

• Gross margin before fair value adjustments was 20% in Q1 2026, down from 31% in Q1 2025; excluding Cascadia ramp-up costs, gross margin would have been approximately 29%.

• Adjusted EBITDA was a loss of CAD 580,000 (or $0.6 million), compared to a positive CAD 700,000 in Q1 2025.

• Operating expenses increased by CAD 1.6 million year-over-year due to investments in talent, brand development, and regulatory costs.

• Cash and cash equivalents stood at CAD 3.2 million as of March 31, 2026.

Outlook and guidance

• Second half of 2026 expected to show improvements in gross margin, Adjusted EBITDA, and cash flow as Cascadia ramps up branded sales.

• Full-year 2026 CapEx expected to total CAD 5.2 million, focused on process insourcing, automation, and efficiency projects.

• Combined annual production capacity of 15,500 kg positions the company to meet growing demand domestically and internationally.

• International sales expected to grow following the U.K. launch and further certifications.

• Ongoing focus on genetics innovation and new cultivar launches to maintain premium market leadership.