OGI

Image source: The Motley Fool. Tuesday, Aug. 11, 2026 at 8:00 a.m. ET Director of Investor Relations - Max Schwartz Chief Executive Officer - James Yamanaka Chief Financial Officer - Greg Guyatt Operator: Good morning. My name is Matthew, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Organigram Global Third Quarter Fiscal 2026 Earnings Conference Call. [Operator Instructions] Thank you. I'll now turn the call over to Max Schwartz, Director of Investor Relations. Max Schwartz: Thanks, Matt. Good morning, everyone, and thanks for joining us today. As a quick reminder, this call is being recorded and a replay will be available on our website within 24 hours. Today's call will include forward-looking statements and actual results could differ materially due to a number of risk factors outlined in our filings and the cautionary statements included in our Q3 fiscal 2026 press release and MD&A. We'll also reference certain non-IFRS measures such as adjusted EBITDA, adjusted gross margin, and free cash flow. Definitions and reconciliations are available in our disclosure materials. Unless otherwise noted, market share data is sourced from Hifyre, Weedcrawler, provincial boards, retailers, and our internal sales tracking. Discussing our results today are James Yamanaka and Greg Guyatt, CEO and CFO of Organigram Global. I once again welcome you to today's call. And with that, I'll turn the call over to James. James Yamanaka: Thank you, Max. And good morning, everyone. Thank you for joining us today. Q3 represents an important milestone for Organigram. For the first time, our financial results include almost a full quarter of contributions from Sanity Group, providing a clearer picture of a larger, more diversified, and increasingly international cannabis business. Before I discuss the business, I'd like to recognize our teams across Canada and Germany. Together, they delivered the highest quarterly net revenue and adjusted EBITDA in Organigram's history. Organigram today is a fundamentally different company than it was earlier this year. We are larger in scale, broader in geographic reach, and better positioned for long-term profitable growth. This quarter demonstrates that our strategy is beginning to translate into stronger financial results, which we believe reset the trajectory of the company to achieve higher margins and profitability in the coming periods. I'll begin with Canada, where I'll discuss the progress we've made recovering share in vapes and infused pre-rolls following the challenges we experienced in Q2, before turning to our international business and the integration of Sanity. Greg will then walk you through the financial results in greater detail. Starting us off with Canada. As of quarter end, Organigram held an 11.1% share of the Canadian recreational cannabis market. Several of our core categories continued delivering strong growth while the corrective actions we implemented during Q2 related to vapes and infused pre-rolls began gaining traction in June. At the same time, we've become more disciplined with our portfolio. Compared to last year, we've reduced our SKU count by roughly 10%. Rather than chasing shelf space through product proliferation, we're positioning ourselves to gradually invest behind fewer, stronger brands with clear consumer positioning and less overlap. We believe this approach reduces complexity, strengthens execution, improves operational efficiency, and ultimately creates more durable brands. Beginning with vapes, we completed the rollout of our new all-in-one hardware platform and higher-potency Liquid Diamond products near the end of Q2. These products are now broadly distributed across Canada alongside the enhanced quality control processes we discussed on our previous call. The earlier results have been straightforward. During June, our all-in-one vape share increased by 1.1 percentage points month over month, while declines in the 510 segment began to reverse. While one month doesn't establish a trend, we believe it provides encouraging evidence that the product improvements we've made are resonating with consumers. Infused pre-rolls also returned to growth, gaining 0.3 share points month over month, while regular pre-rolls also improved, resulting in overall pre-roll growth. While the category has become Canada's largest and most competitive segment, representing more than 36% of total industry sales, as quality, consistency and potency continue improving, we believe there is opportunity to expand our share further. BOXHOT infused pre-rolls were a particular highlight this quarter, growing 0.8 percentage points year-over-year. Our strongest performance, however, continues to come from flower. Driven by continued advances in cultivation, genetics, and plant science, Organigram ended the quarter with a 12.5% share of the flower category, up 2 percentage points year-over-year. We also achieved a higher service share in the important 3.5-gram format. These gains reflect years of investment in cultivation excellence. During Q3, average THC potency for Moncton reached a record 30.4%, while harvested kilograms remained above 30,000 per quarter, up approximately 25% year-over-year. Outside of flower, we also delivered strong growth in beverages and concentrates. In beverage, Organigram ranked 4th nationally with an 8.6% category share, up 3.1 percentage points year-over-year, exiting June above 10% share as SHREDs, sodas, and Shotz continued gaining consumer traction. In concentrates, we strengthened our leadership position as Canada's #1 LP, finishing the quarter with 17.9% share, up 3.3 percentage points year-over-year, driven by continued success in whipped diamonds and hash. One category where performance softened modestly was edibles. While share remained relatively stable year-on-year, we experienced sequential pressure from lower-priced live rosin and competitors. Our response is a broader rollout of our ingestible innovation platform across the edibles portfolio beginning in September. Looking ahead, we are entering what has historically been our strongest seasonal period, supported by successful summer retail programs, improving category momentum, and positive consumer response to our refreshed vape and infused pre-roll portfolios. Overall, we're gradually shifting the orientation of our Canadian business toward increased competitiveness and efficiency and are progressing initiatives to reinforce revenue and margin stability here as we expand into more emerging markets internationally. Now turning to the international part of the business. Q3 marks the first quarter of consolidated financial results from Sanity and the business demonstrated strong performance. As we indicated when announcing the acquisition, we expected Sanity to average approximately EUR 25 million of quarterly revenue. Since consolidating on April 15, the business delivered EUR 24.5 million, contributing more than CAD 40 million of net revenue to our consolidated results, and generated EUR 25.5 million during the full fiscal quarter. While Canada remains the foundation of our business, approximately 35% of our consolidated revenues was generated internationally this quarter, compared to roughly 10% prior to the acquisition. This represents a structural evolution of Organigram's business model and significantly diversifies both our revenue base and future growth opportunities. We believe Europe increasingly represents the largest near and long-term growth opportunity for the company, and we now have a vertically integrated supply chain from Canada to Europe. Demand across Sanity distribution platform continues to grow. Our priority is expanding access to compliant product through our own production improvements and additional supply partnerships. In Moncton, we're continuing to improve our international flower pass rates while standing up EU-GMP compliant remediation pathways. Facility-wide pass rate initiatives have been implemented while we simultaneously identify cultivars that have high levels innate resistance to microbes. Commercially, Sanity also continued expanding its platform throughout the quarter. The business continued preparations for an additional Swiss recreational pilot project, advanced its entry into Poland, launched branded products in the U.K. through new strategic partnerships, established a new Swiss medical partnership, and recorded its first medical cannabis sales in Switzerland. Regarding the recent German regulatory changes disallowing medical cannabis reimbursements, we expect minimal impact on Sanity as approximately 1% of historical sales were reimbursed through government insurance programs. Outside Europe, Australia remains an attractive long-term growth market. Our Australian portfolio is now broadly available and we're focused on driving physician adoption and prescription growth as the market continues to develop. In the United States, the regulatory environment remains uncertain in light of the upcoming ban on hemp-derived THC products. There are efforts to delay the ban by four weeks to December 11, which we view as a positive step. Our business development activities in this segment are effectively paused until we receive regulatory clarity. That said, we are bullish on rescheduling and federal legalization efforts in the U.S., and we continue to closely monitor opportunities for Organigram to participate in relevant segments of the market as it evolves. Our primary international focus right now, however, will remain Europe and Australia, where we believe the opportunities are both larger and more visible over the medium term. To summarize, Q3 demonstrated three important things. First, the integration of Sanity is progressing according to plan, and it's already meaningfully reshaping Organigram's financial profile with record net revenue and adjusted EBITDA, and an improving margin profile. Second, the corrective actions we've taken across our Canadian business are beginning to produce encouraging results, particularly in categories where we experienced temporary execution challenges earlier this year. And third, Organigram today is a significantly larger, more diversified, and more internationally positioned company than at any point in our history. While execution remains our priority, we're confident in the opportunities ahead as we continue building a cash-generating global cannabis business. Finally, I would like to recognize Paolo De Luca, who will be departing Organigram after 9 years of exceptional leadership and service. During his tenure as both Chief Financial Officer and Chief Strategy Officer, Paolo played an instrumental role in many of the company's most transformative transactions, helping lay the foundation for Organigram's evolution into a global cannabis company. On behalf of everyone at Organigram, I thank Paolo for his many contributions and wish him every success in the future. With that, I'll turn the call over to Greg to walk through the quarter in more detail. Greg Guyatt: Thanks, James. We are pleased to report that with the addition of Sanity to our consolidated results, Organigram delivered the largest revenue quarter in the company's history, improved adjusted gross margin both sequentially and year-over-year, and generated record adjusted EBITDA. As James noted, international revenue now represents more than 1/3 of our total revenue. That marks a fundamental shift in Organigram's business profile. We are now operating as a diversified global cannabis platform with meaningful scale across multiple markets. With that, let's turn to the detailed results. Net revenue for the quarter was $105.8 million compared to $70.8 million in the prior year period, representing a year-over-year increase of 49%. The increase in net revenue was primarily attributable to contributions from Sanity Group, partially offset by slightly lower Canadian market share year-over-year due to lower vape and pre-roll share as well as our intentional reduction in SKU count, an ongoing project to simplify our portfolio and ultimately improve margins. Sanity's contribution since the close of our acquisition on April 15, 2026, contributed EUR 24.5 million or approximately $40 million to Organigram revenue. For the entire quarter, including the 2 weeks that we did not own them, Sanity's revenue exceeded EUR 25 million, in line with expectations at the time of acquisition, with the stage set for additional growth over the course of the remainder of the year and into fiscal 2027. The adjusted gross margin was 37%, an increase of 300 basis points year-over-year, and 600 basis points sequentially. The increase was primarily driven by contributions from Sanity and improvements in Canadian operations compared to both comparison periods. It is important to note that the underlying cost structure of Organigram's Canadian operations is expected to continue improving. Cultivation yields, potency improvements, and portfolio rationalization remain positive contributors, and we expect these to become more visible as we continue optimizing the business. G&A expenses for the quarter were $20.6 million compared to $15.7 million in the prior year period, an increase of 31%, primarily attributable to the inclusion of Sanity expenses and the amortization of intangibles related to the acquisition, partially offset by a $3 million recovery of a previously recorded bad debt provision. As a percentage of net revenue, G&A was approximately 19%, representing a decrease of approximately 300 basis points year-over-year and 600 basis points sequentially. The reduction compared to both prior periods was primarily due to operational leverage from the consolidation of the Sanity Group. Sales and marketing expenses in the quarter increased to $12.1 million versus the prior year period amount of $8.8 million. The increase was, once again, driven by the inclusion of Sanity expenses, as well as higher investments in advertising and promotional activities in line with seasonality, our Summer of SHRED campaigns, and new product launches. Overall, SG&A in the quarter was $32.7 million versus $24.5 million in the prior year period. As a proportion of net revenue, SG&A declined from 34% in Q3 of last year to 31% in the current period, a decrease of approximately 300 basis points. Our record adjusted EBITDA for Q3 was $13.4 million compared to $5.7 million in the prior year period. The 136% increase was primarily driven by Sanity Group as well as efficiencies in Canada. Net income for the quarter was $105.5 million compared to a loss of $6.3 million in the prior year period. This substantial increase in net income in the current period was primarily attributable to higher fair value gains on derivative liabilities, preferred shares, and other financial assets of $105.8 million. Cash provided by operating activities before working capital changes was $6.2 million compared to cash used of $0.7 million in the prior year period. This improvement primarily reflects stronger underlying operating performance, including higher net revenue, better product mix, and higher gross margin. Cash used in operating activities was $4.3 million compared to cash provided of $14.6 million in the prior year period. Despite stronger cash generation before working capital changes, operating cash flow was more than offset by working capital investments during the quarter, part of which was building inventory to address German demand issues and the timing of sales during the quarter. Free cash flow was an outflow of $3.9 million for the quarter compared to an inflow of $5 million in the prior year period. Underlying cash generation improved meaningfully before working capital changes and capital expenditures were substantially lower than the prior year period. However, these benefits were more than offset by working capital investments associated with the company's increased scale and growth expectations. Regarding liquidity, as of June 30, Organigram had cash and cash equivalents of $11.7 million and total liquidity of $49.2 million, including our debt facilities. To conclude, we are very pleased with our strong financial performance this quarter, highlighted by record revenue, record adjusted EBITDA, and resumed margin expansion. We are delighted with the performance of Sanity Group thus far, as well as the growth we are expecting in the coming quarter, which we believe will further strengthen our earnings profile while expanding our international platform. Although working capital investments impacted cash flow during the quarter, they were largely a function of supporting a substantially larger and growing vertically integrated global business. We continue to expect revenue to exceed $350 million for the full year of fiscal 2026, adjusted gross margin and adjusted EBITDA to meaningfully exceed fiscal 2025 levels. The underlying earnings profile of the business has strengthened, but working capital requirements associated with integrating Sanity and supporting a much larger business are expected to result in negative free cash flow for the full year this year. Importantly, we continue to expect positive free cash flow in the fourth quarter, which we believe is a better indicator of the business's ongoing cash-generating capacity. With that, we'll open the call for questions. Operator: [Operator Instructions] Your first question comes from the line of Aaron Grey with AGP, Alliance Global Partners. Aaron Grey: First question for me, just in terms of, now that you've closed Sanity Group, it would be great to get any early learnings or what you're seeing now as a wholly consolidated entity for a longer period of time, a full quarter, and what opportunities you might feel present themselves well internationally as it remains a top priority for you as well as many of your other Canadian LP peers. James Yamanaka: Sure. Thanks, Aaron. This is James. I'll tackle the first part of that and maybe let Greg say a little more at the end if he'd like to. I think over the first several months of having Sanity in the group, there are a number of key learnings I think so far. Number one is that it has completely changed the profile of the group where the focus is more on the international, although Canada remains the core of the business. Two, I think there's -- the growth rate there is putting stress not just on organizations but I think a lot of other suppliers in terms of flower supply, but we're addressing those through our activities in Moncton, as well as looking at different suppliers, partnerships that we can do to make sure we satisfy that. And I think the cultural fit between the two companies and the lack of overlap is making it easier for us to move forward, although I think like any new partnership, there are teething problems along the way, but I think we sorted through most of those. Greg, I don't know if you wanted to add anything else to that. Greg Guyatt: No, I would just add that we were really happy with the performance in the first quarter of consolidation. Getting to that EUR 25 million benchmark was really an important achievement for us. And now that we've sorted out some of our flower challenges that we had last quarter, we're expecting that growth to continue, looking forward to a strong Q4 that's going to outperform what we did in Q3. Aaron Grey: Okay, great. Really appreciate the color there. And then just on the Canadian side, maybe talk about how you're prioritizing, capacity allocation. Obviously, you have international as a driver, but, you've made it clear you want to maintain your market leadership within Canada. So talk about how you're allocating capacity accordingly to be able to do that. James Yamanaka: Okay, yes, thanks. That's a good question. First of all, I think when we're looking at the overall Canadian portfolio, as I mentioned earlier, what we're trying to do is simplify the portfolio. We've already reduced the SKU count by about 10% to simplify, both from, to reduce the complexity on the back end across all the different product categories. And you can see that we've been able to address a lot of the issues from last quarter around vape and IPRs, and it's only a month, but the trajectory is good. I think in terms of the allocation, it's always going to be a trade-off between international and domestic, but we're confident that with the different activities we're doing both within our own supply with partnerships, and other mechanisms where we are increasing the flower supply, we'll be able to satisfy the needs of both Canada as well as international markets. Greg? Greg Guyatt: No, I totally agree with that. Obviously, looking at how we optimize our margins and balancing our mix between internally sourced flower and sourcing flower from third-parties. But clearly, there is a strong benefit towards allocating as much as we can to Sanity while protecting Canada. Operator: Your next question comes from the line of Frederico Gomes with ATB Cormark. Frederico Yokota Gomes: Congratulations on a record quarter here. First question I want to ask again about Sanity performing in line, I guess, with your revenue expectation. But I'm curious if you could talk about margins from Sanity and how is the competitive environment for distributors in Germany looking like from a margin perspective and how do you expect that margin profile to evolve over the next two quarters? Greg Guyatt: Yes, maybe I can tackle that. Yes. So as of right now, our margins are operating in line with what we expected as well along with revenue. To your point about the competitive environment in Germany, right now there's a ton of demand, and we haven't seen significant price compression over the last quarter. And in fact, we probably haven't been able to even satisfy all the demand that was there. So there had been, I think, a quarter or two about potential risk of price compression in Germany. And we have expected some, but really it's been minimal at this point. So at the moment, margins continue to be solid and we continue to be stable going forward over the course of the next couple of quarters. In terms of margins in Canada, you know, overall we hit 37% this quarter, which was a significant improvement over last quarter. You know, the drivers are both the contributions from Sanity, but also in Canada, you may recall in Q2, we had a higher than normal rate of return, particularly with some of our vapes in Canada. Those issues have now been resolved. We've launched new vape hardware. And as James mentioned in his comments, those products, the initial results have been very strong. So we expect margins to continue improving as we go into Q4 and into next year. Obviously, we're always looking at efficiency improvements and how we can produce from Moncton more efficiently, but also from our manufacturing operations. So some of the SKU rationalization initiatives we're looking at, we expect that to really provide some optimization where we eliminate some of the lower performing profitability products and really double down on the strong performers to improve our margins over the course of the rest of this year and going into next year as well. Frederico Yokota Gomes: Appreciate that. Second question. You mentioned the EU-GMP, I guess audit at Moncton. Can you give us an update on that in terms of maybe some timelines here and also remind us how much of an impact on margins could that have once you get the EU-GMP certification? James Yamanaka: Right. So, unfortunately, with the EU-GMP, we don't have any new news. As you recall from the last quarter, we put in the application in April. What we've been doing since then, we had an audit back in November last year. We addressed any issue that was raised at that time. We resubmitted in April and we are speaking constantly to the regulator to try and get a response. I'm wary of giving a timeline because we're just waiting on when the regulator would do. We know they are looking at it, starting this month, and we'll give you updates as soon as we know. Greg, did you want to go on the margin side? Greg Guyatt: Sure. From a margin perspective, we've never actually quantified on any of our calls the exact impact we expect, other than to say that it is meaningful once the EU-GMP comes in by not having to use a processor in Europe as we ship to Germany. In terms of margin expectations going forward, though, we think that it's probably going to start as soon as the EU-GMP comes in and we'll see the improvement then. Operator: Your next question comes from the line of Kenric Tyghe with Canaccord Genuity. Kenric Tyghe: And allow me to echo the congratulations on the beaten quarter. If I could, just with respect to the comment on flower, is it as simple as a supply or a quality of supply issue? Because one of the discussions that has come up through this earnings season has been one of pushback by the German authorities. So if you could sort of speak to both the quality of supply into Germany and then perhaps also address the quality of supply within the domestic market, just so we can help tease out the dynamics there. James Yamanaka: Sure. I did mention. I think with the growth of the German market over the last several years, there is certainly a tight supply for EU-GMP flower going into Germany. And with that said, we're addressing it with the improvement in flower that passes microbial count at Moncton. We have new suppliers as well, and we have opened up different remediation pathways into Europe. You know, some of the German authorities have tightened up EU-GMP to an extent, but with the new activities we've been doing, we're confident we can supply most of the demand that Sanity requires, but it is a tight market for the EU-GMP quality supply into Germany at the moment. For Canada, the EU-GMP issue doesn't exist, so the quality is sufficient for the Canadian market. I don't know if you wanted to add anything onto that, Greg. Greg Guyatt: No, totally agree with that. I mean, obviously we've seen some significant improvements over the last 4 or 5 months. So we expect that to really drive future profitability as we get into Q4 and Q1 of next year. Kenric Tyghe: Great. And then Greg, just to follow up with respect to sort of the cadence of spend, how much of the sort of spend in Germany, was there any pull forward? Was there any sort of spend required that we won't see being repeated in this first sort of full quarter post-integration? Just trying to sort of work through again expected SG&A type cadence or SG&A type margins out of that business? Greg Guyatt: Yes, no, I think the spending there was in line with what was expected, and I think that on a normalized basis, the spend that we've seen there is probably what we would expect going forward. If anything, I would expect revenue to increase meaningfully, but operating expenses to stay relatively low, and really start to see that P&L leverage start to come into effect. So when we look at our SG&A as a percentage of sales, we've seen that coming down fairly consistently over the long term here, and we expect that to continue going forward. So I wouldn't forecast major increases in expenditures there. Operator: There are no further questions at this time. This concludes today's call. Thank you for attending. You may now disconnect. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved record quarterly net revenue and adjusted EBITDA, driven primarily by the first consolidated contribution from Sanity Group and operational efficiencies in Canada. Transformed the business model into a global platform, with international revenue now representing approximately 35% of the consolidated total compared to 10% previously. Implemented a disciplined portfolio strategy in Canada, reducing SKU count by roughly 10% to focus on high-margin, durable brands rather than chasing shelf space through product proliferation. Successfully reversed Q2 execution challenges in the Canadian vape and infused pre-roll segments through the rollout of new all-in-one hardware and higher-potency Liquid Diamond products. Leveraged cultivation excellence at the Moncton facility to reach record average THC potency of 30.4% and a 25% year-over-year increase in harvested kilograms. Maintained market leadership in Canadian concentrates with a 17.9% share while expanding beverage share to over 10% by the end of June. Identified Europe as the primary near-term growth engine, establishing a vertically integrated supply chain from Canadian production to European distribution. Reiterated full-year fiscal 2026 revenue guidance to exceed $350 million, with adjusted gross margin and adjusted EBITDA expected to meaningfully surpass fiscal 2025 levels. Anticipates positive free cash flow in the fourth quarter, despite full-year negative free cash flow resulting from working capital investments required to scale the international business. Focusing on expanding European market access by improving international flower pass rates and establishing EU-GMP compliant remediation pathways at the Moncton facility. Planning a broader rollout of the ingestible innovation platform across the edibles portfolio in September to counter competitive pricing pressure from live rosin products. Maintaining a cautious stance on the U.S. market, pausing business development activities until regulatory clarity is received regarding the ban on hemp-derived THC products. Consolidated Sanity Group results effective April 15, 2026, contributing approximately $40 million in net revenue for the partial quarter. Reported a significant increase in net income to $105.5 million, largely driven by $105.8 million in fair value gains on derivative liabilities and financial assets. Announced the departure of Paolo De Luca, Chief Strategy Officer and former CFO, after nine years of service. Noted that recent German regulatory changes regarding medical cannabis reimbursements will have minimal impact, as only approximately 1% of Sanity's historical sales were reimbursed. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted the acquisition has fundamentally shifted the company's profile toward international markets, though Canada remains the core foundation. High demand in Germany is currently stressing flower supply chains; the company is addressing this through Moncton production improvements and new third-party supply partnerships. Confirmed Sanity achieved its EUR 25 million quarterly revenue benchmark and expects Q4 to outperform Q3 as supply challenges are resolved. Management views capacity as a strategic trade-off but is confident that increased flower supply and portfolio simplification will satisfy both markets. There is a clear financial incentive to prioritize allocation to Sanity to optimize margins while simultaneously protecting Canadian market share. Reported that German margins are stable as high demand has prevented significant price compression thus far. Management expects P&L leverage to improve as revenue grows while German operating expenses remain relatively flat. The company is awaiting a response from regulators following an April resubmission and expects the audit process to begin this month. While not providing specific figures, management stated the margin impact will be 'meaningful' by eliminating the need for third-party processors in Europe.

This article first appeared on GuruFocus. Net Revenue: $105.8 million, a 49% increase year over year from $70.8 million. Sanity Group Revenue Contribution: EUR24.5 million (approximately $40 million) since consolidation on April 15, 2026; EUR25.5 million for the full fiscal quarter. Adjusted Gross Margin: 37%, up 300 basis points year over year and 600 basis points sequentially. Adjusted EBITDA: Record $13.4 million, up 136% from $5.7 million in the prior year period. Net Income: $105.5 million, compared to a loss of $6.3 million in the prior year period, driven by fair value gains on derivative liabilities and other financial assets. G&A Expenses: $20.6 million, up 31% year over year, but down 300 basis points as a percentage of net revenue to 19%. Sales and Marketing Expenses: $12.1 million, up from $8.8 million in the prior year period. SG&A Expenses: $32.7 million, down 300 basis points as a percentage of net revenue to 31%. Cash Provided by Operating Activities (before working capital changes): $6.2 million, compared to cash used of $0.7 million in the prior year period. Cash Used in Operating Activities: $4.3 million, compared to cash provided of $14.6 million in the prior year period. Free Cash Flow: Outflow of $3.9 million, compared to an inflow of $5 million in the prior year period. Cash and Cash Equivalents: $11.7 million as of June 30, with total liquidity of $49.2 million. Canadian Market Share: 11.1% of the Canadian recreational cannabis market. Flower Category Share: 12.5%, up 2 percentage points year over year. Concentrates Category Share: 17.9%, up 3.3 percentage points year over year. Beverage Category Share: 8.6%, up 3.1 percentage points year over year. International Revenue Mix: Approximately 35% of consolidated revenues generated internationally, compared to roughly 10% prior to the Sanity Group acquisition. Full-Year Fiscal 2026 Guidance: Revenue expected to exceed $350 million, with adjusted gross margin and adjusted EBITDA expected to meaningfully exceed fiscal 2025 levels. Warning! GuruFocus has detected 1 Warning Sign with OGI. Is OGI fairly valued? Test your thesis with our free DCF calculator. Release Date: August 11, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record quarterly net revenue of $105.8 million, up 49% year-over-year, driven by the Sanity Group acquisition and strong Canadian performance. Record adjusted EBITDA of $13.4 million, a 136% increase year-over-year, reflecting improved margins and operational leverage. Adjusted gross margin improved to 37%, up 300 basis points year-over-year and 600 basis points sequentially, due to Sanity Group contributions and Canadian efficiency gains. International revenue now represents over 35% of total revenue, diversifying the business and reducing reliance on the Canadian market. Canadian flower category share reached 12.5%, up 2 percentage points year-over-year, with record THC potency of 30.4% and increased harvest volumes. Free cash flow was negative at $3.9 million for the quarter, impacted by working capital investments to support growth and inventory buildup for German demand. Cash used in operating activities was $4.3 million, a decline from the prior year's $14.6 million inflow, due to working capital timing. Canadian market share slightly declined year-over-year due to lower vape and pre-roll share, despite corrective actions showing early signs of recovery. Edibles category experienced sequential pressure from lower-priced live rosin competitors, leading to a softer performance. EU GMP certification for Moncton remains pending, with no clear timeline, delaying potential margin improvements from direct shipping to Europe. Q: Now that Sanity Group has been consolidated for almost a full quarter, what are your early learnings, and what opportunities do you see presenting themselves internationally?A: James Yamanaka (CEO): The acquisition has completely changed the group's profile, shifting focus more toward international operations, though Canada remains the core. The growth rate in Germany is putting stress on flower supply, which we are addressing through our Moncton facility improvements and new supplier partnerships. The cultural fit between the two companies and the lack of overlap has made integration easier, despite typical teething problems. Greg Guyatt (CFO) added that achieving the EUR25 million revenue benchmark in the first quarter of consolidation was a key achievement, and with flower challenges sorted out, they expect strong growth to continue in Q4. Q: Can you provide an update on the EU GMP certification for the Moncton facility, including timelines and the potential impact on margins once achieved?A: James Yamanaka (CEO): We don't have new news on the EU GMP certification. We resubmitted our application in April after addressing issues from a November audit and are in constant communication with the regulator. We are wary of giving a timeline as we await their response, but they are reviewing it starting this month. Greg Guyatt (CFO) noted that while they haven't quantified the exact margin impact, it will be meaningful once EU GMP is achieved by eliminating the need for a European processor when shipping to Germany. Q: Regarding the flower supply into Germany, is it a supply or quality issue, and how are you addressing the tight EU GMP flower market?A: James Yamanaka (CEO): The growth of the German market has created a tight supply for EU GMP flower. We are addressing this through improved flower pass rates at Moncton, new suppliers, and opening up different remediation pathways into Europe. While German authorities have tightened EU GMP requirements, we are confident we can supply most of Sanity Group's demand. For Canada, the EU GMP issue doesn't exist, and quality is sufficient for the domestic market. Greg Guyatt (CFO) added that significant improvements over the last four to five months should drive future profitability in Q4 and Q1 of next year. Q: Can you discuss the margin profile of Sanity Group and the competitive environment for distributors in Germany?A: James Yamanaka (CEO): There is a ton of demand in Germany, and we haven't seen significant price compression over the last quarter. In fact, we haven't been able to satisfy all the demand. While we expected some price compression, it has been minimal, and margins remain solid and stable going forward. Greg Guyatt (CFO) added that overall margins hit 37% this quarter, driven by Sanity Group contributions and the resolution of Q2 vape return issues in Canada. They expect margins to continue improving into Q4 and next year, supported by SKU rationalization and efficiency improvements. Q: How are you prioritizing capacity allocation between the Canadian market and the growing international demand?A: James Yamanaka (CEO): We are simplifying the Canadian portfolio, having reduced SKU count by about 10% to reduce complexity. The allocation between international and domestic is always a trade-off, but we are confident that through our own supply improvements, partnerships, and other mechanisms to increase flower supply, we can satisfy both markets. Greg Guyatt (CFO) added that they are optimizing margins by balancing internally sourced flower with third-party sourcing, with a strong benefit to allocating as much as possible to Sanity Group while protecting Canada. Q: Regarding the cadence of spending in Germany, was there any one-time or pull-forward spend in the first full quarter post-integration that won't be repeated?A: Greg Guyatt (CFO): The spending in Germany was in line with expectations, and on a normalized basis, the spend is what we would expect going forward. We expect revenue to increase meaningfully while operating expenses stay relatively low, allowing P&L leverage to come into effect. SG&A as a percentage of sales has been coming down consistently, and we expect that trend to continue without major increases in expenditures. Q: Can you provide more detail on the corrective actions taken in the Canadian vape and infused pre-roll categories and the early results?A: James Yamanaka (CEO): We completed the rollout of our new all-in-one hardware platform and higher-potency Liquid Diamond products near the end of Q2, alongside enhanced quality control processes. In June, our all-in-one vape share increased by 1.1 percentage points month over month, and declines in the 510 segment began to reverse. Infused pre-rolls also returned to growth, gaining 0.3 share points month over month. While one month doesn't establish a trend, it provides encouraging evidence that the product improvements are resonating with consumers. Q: What is the expected impact of the recent German regulatory changes disallowing medical cannabis reimbursements on Sanity Group?A: James Yamanaka (CEO): We expect minimal impact on Sanity Group as approximately 1% of historical sales were reimbursed through government insurance programs. The German market remains a significant growth opportunity, and we are focused on expanding access to compliant products through our own production improvements and additional supply partnerships. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Record Quarterly Revenue and Adjusted EBITDA(1) Driven by Acquisition of Sanity Group TORONTO, August 11, 2026--(BUSINESS WIRE)--Organigram Global Inc. (NASDAQ: OGI) (TSX: OGI), (the "Company" or "Organigram"), Canada's #1 cannabis company by market share2 and a growing global cannabis platform following its acquisition of Sanity Group GmbH ("Sanity" or "Sanity Group"), today announced its results for the third quarter ended June 30, 2026 ("Q3 Fiscal 2026" or "Q3"). Q3 FISCAL 2026 HIGHLIGHTS Gross Revenue: $145.1 million (+32% year-over-year). Net Revenue: $105.8 million (+49% year-over-year). Adjusted EBITDA1: $13.4 million (+136% year-over-year). #1 Market Share in Canada: #1 in vapes, #1 in milled flower, #1 in concentrates, #2 in flower, #2 in pre-rolls, #3 in edibles, and #4 in beverages2. Sanity Group: Since the acquisition closed on April 15, 2026, Sanity has performed in line with management's expectations, contributing approximately €25 million (C$40 million) in net revenue to Organigram's consolidated results. During the quarter, Sanity continued to execute on its European growth strategy, advancing preparations for an additional Swiss recreational pilot project, progressing its entry into Poland, launching branded products in the UK through new strategic partnerships, establishing a significant new Swiss medical partnership, and recording its first meaningful medical cannabis sales in Switzerland. "This quarter marks an important milestone for Organigram as we report the first quarter of financial contributions from Sanity Group, helping drive record quarterly revenue and adjusted EBITDA," said James Yamanaka, Chief Executive Officer. "Sanity's performance has been in line with our expectations, while our Canadian business continues to demonstrate resilience through market leadership and improving performance in key categories driven by operational enhancements and targeted changes to our product portfolio. As we enter the final quarter of Fiscal 2026, we are a fundamentally different company, and I look forward to continuing to execute our global strategy by leveraging our integrated Canadian operations and European distribution platform to drive long-term growth. "I would also like to recognize Paolo De Luca, who will be departing Organigram after nine years of exceptional leadership and service. During his tenure as both Chief Financial Officer and Chief Strategy Officer, Paolo played an instrumental role in many of the Company's most transformative transactions, helping lay the foundation for Organigram's evolution into a global cannabis company. On behalf of everyone at Organigram, I thank Paolo for his many contributions and wish him every success in the future." THIRD QUARTER FISCAL 2026 FINANCIAL OVERVIEW Net revenue: Adjusted gross margin3: Selling, General & Administrative ("SG&A") Expenses: Net Income: Adjusted EBITDA3: Net Cash used in Operating Activities: Free Cash Flow ("FCF")3: "The addition of Sanity Group, combined with improved operational execution in Canada, delivered record quarterly revenue and adjusted EBITDA while strengthening our margin profile," said Greg Guyatt, Chief Financial Officer. "With one quarter remaining in Fiscal 2026, we remain on track for net revenue to exceed $350 million, with adjusted gross margin and adjusted EBITDA exceeding Fiscal 2025 performance. While working capital investments associated with our increased scale are expected to result in modestly negative free cash flow for the full fiscal year, we continue to expect positive free cash flow in the fourth quarter which we believe is an indicator of our cash generation trajectory moving forward." BALANCE SHEET & LIQUIDITY As of June 30, 2026, the Company had total cash (including short-term investments) of $11.7 million. Total liquidity, inclusive of credit facilities was $49.1 million. RECONCILIATION The following table reconciles the Company's adjusted EBITDA to net income (loss). The following table reconciles the Company's adjusted gross margin to gross margin before fair value adjustments: The following table reconciles the Company's Free Cash Flow to net cash and restricted cash provided by (used in) operating activities: Third Quarter Fiscal 2026 Conference Call The Company will host a conference call to discuss its results with details as follows:Date: August 11, 2026Time: 8:00 am Eastern Time To register for the conference call, please use this link: https://events.q4inc.com/analyst/401315111?pwd=q4Su5uEp To ensure you are connected for the full call, we suggest registering a day in advance or at minimum 10 minutes before the start of the call. After registering, a confirmation will be sent through email, including dial in details and unique conference call codes for entry. Registration is open through the live call. To access the webcast: https://events.q4inc.com/attendee/401315111 A replay of the webcast will be available within 24 hours after the conclusion of the call at https://www.organigram.ca/investors and will be archived for a period of 90 days following the call. Non-IFRS Financial Measures This news release refers to certain financial performance measures (including adjusted gross margin, adjusted gross margin %, adjusted EBITDA and free cash flow) that are not defined by and do not have a standardized meaning under IFRS as issued by the International Accounting Standards Board. Non-IFRS financial measures are used by management to assess the financial and operational performance of the Company. The Company believes that these non-IFRS financial measures, in addition to conventional measures prepared in accordance with IFRS, enable investors to evaluate the Company’s operating results, underlying performance and prospects in a similar manner to the Company’s management. As there are no standardized methods of calculating these non-IFRS measures, the Company’s approaches may differ from those used by others, and accordingly, the use of these measures may not be directly comparable. Accordingly, these non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Adjusted EBITDA is a non-IFRS measure that the Company defines as net income (loss) excluding: financing costs, net of investment income; income tax expense (recovery); depreciation, amortization, impairment, normalization of depreciation add-back due to changes in depreciable assets resulting from impairment charges, (gain) loss on disposal of property, plant and equipment (per the consolidated statement of cash flows); share-based compensation (per the consolidated statement of cash flows); share of loss (gain) from investments in associates including impairment loss; change in fair value of contingent consideration; change in fair value of derivative liabilities, other financial assets and preferred shares; expenditures incurred in connection with research and development activities (net of depreciation); unrealized gain on changes in fair value of biological assets; realized fair value on inventories sold and other inventory charges; provisions and net realizable value adjustments related to inventory and biological assets; government subsidies, insurance recoveries and other non-operating expenses (income); legal provisions (recoveries); ERP implementation costs; transaction costs; share issuance costs; and provision for Canndoc expected credit losses. Adjusted EBITDA is intended to provide a proxy for the Company’s operating cash flow and derives expectations of future financial performance for the Company, and excludes adjustments that are not reflective of current operating results. Adjusted gross margin is a non-IFRS measure that the Company defines as net revenue less cost of sales, before the effects of (i) unrealized gain on changes in fair value of biological assets; (ii) realized fair value on inventories sold and other inventory charges; (iii) realized fair value on inventories sold from acquisitions; (iv) provisions and impairment of inventories and biological assets; and (v) provisions to net realizable value. Adjusted gross margin % is calculated by dividing adjusted gross margin by net revenue. Management believes that these measures provide useful information to assess the profitability of our operations as they represent the normalized gross margin generated from operations and exclude the effects of non-cash fair value adjustments on inventories and biological assets, which are required by IFRS. Free cash flow provided by (used in) operating activities is calculated as net cash provided by or used in operating activities less the purchase of property, plant and equipment. Free cash flow is a useful indicator of the Company's capacity to fund operations from internally generated cash flows, without the need for additional borrowings or use of existing cash reserves under normal operating conditions. The most directly comparable measure to adjusted EBITDA, calculated in accordance with IFRS is net income (loss) and see the "Reconciliation" section of this press release for a reconciliation to such measure. The most directly comparable measure to adjusted gross margin calculated in accordance with IFRS is gross margin before fair value adjustment and see "Reconciliation" section of this press release for a reconciliation to such measure. The most directly comparable measure to Free Cash Flow is net cash and restricted cash provided by (used in) operating activities, and see the "Reconciliation" section of this press release for a reconciliation to such measure. 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 of cannabis and manufacturer of cannabis-derived goods in Canada. Through its acquisition of Collective Project Limited, Organigram Global participates in the U.S. and Canadian cannabinoid beverages markets. Organigram is focused on producing high-quality, indoor-grown cannabis for patients and adult recreational consumers in Canada, as well as developing international business partnerships to extend the Company’s global footprint. Organigram has also developed a portfolio of legal adult-use recreational cannabis brands, including Edison, Holy Mountain, Big Bag O’ Buds, SHRED, SHRED'ems, Monjour, Tremblant Cannabis, Trailblazer, Collective Project, BOXHOT and DEBUNK. Organigram operates facilities in Moncton, New Brunswick and Lac-Supérieur, Québec, with a dedicated manufacturing facility in Winnipeg, Manitoba. The Company also operates two additional cannabis processing facilities in Southwestern Ontario; one in Aylmer and the other in London. The facility in Aylmer houses best-in-class CO2 and Hydrocarbon extraction capabilities, and is optimized for formulation refinement, post-processing of minor cannabinoids, and pre-roll production. The facility in London will be optimized for labelling, packaging, and national fulfillment. The Company is regulated by the Cannabis Act and the Cannabis Regulations (Canada). Forward-Looking Information This news release contains forward-looking information. Forward-looking information, in general, can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "could", "would", "might", "expect", "intend", "estimate", "anticipate", "believe", "plan", "continue", "budget", "schedule" or "forecast" or similar expressions suggesting future outcomes or events. They include, but are not limited to, statements with respect to expectations, projections or other characterizations of future events or circumstances, and the Company’s objectives, goals, strategies, beliefs, intentions, plans, estimates, forecasts, projections and outlook, including statements relating to the Company’s future performance, the Company’s positioning to capture additional market share and sales including international sales and the expected continued progress in international on-spec volumes, expectations for consumer demand, expected improvement to gross margins before fair value changes to biological assets and inventories, expectations regarding adjusted gross margins, adjusted EBITDA, Free Cash Flow and net revenue in the fourth quarter of Fiscal 2026 and beyond, expectations regarding cultivation capacity, the Company’s plans and objectives including around the availability and sources of any future financing, availability of cost efficiency opportunities, the ability of the Company to fulfill demand for its revitalized product portfolio with increased staffing, expectations relating to greater capacity to meet demand due to increased capacity at the Company’s facilities, expectations around lower product cultivation costs, the ability to achieve economies of scale and ramp up cultivation, expectations pertaining to the increase of automation and reduction in reliance on manual labour, expectations around the launch of higher margin dried flower strains, expectations around market and consumer demand and other patterns related to existing, new and planned product forms; expectations regarding the Company's integration of Sanity Group, including the expected revenue to be generated by Sanity Group over the next calendar year; expectations around FASTTM nanoemulsion technology; expectations regarding EU-GMP certification; timing for launch of new product forms, ability of those new product forms to capture sales and market share, estimates around incremental sales and more generally estimates or predictions of actions of customers, suppliers, partners, distributors, competitors or regulatory authorities; statements regarding the future of the Canadian and international cannabis markets and, statements regarding the Company’s future economic performance. These statements are not historical facts but instead represent management beliefs regarding future events, many of which, by their nature are inherently uncertain and beyond management control. Forward-looking information has been based on the Company’s current expectations about future events. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectations. These risks, uncertainties and factors include: general economic factors; geopolitical risks; international trade disputes sparked by tariffs and retaliatory tariffs or other non-tariff measures; changes to government laws, regulations or policies, including customs, tariffs, trade or environmental law, regulations or policies, or the enforcement thereof; receipt of regulatory approvals or consents and any conditions imposed upon same and the timing thereof; the Company's ability to meet regulatory criteria which may be subject to change; change in regulation including restrictions on sale of new product forms; change in stock exchange listing practices; the Company's ability to manage costs, timing and conditions to receiving any required testing results and certifications; results of final testing of new products; changes in governmental plans including those related to methods of distribution; timing and nature of sales and product returns; customer buying patterns and consumer preferences not being as predicted given this is a new and emerging market; material weaknesses identified in the Company’s internal controls over financial reporting; the completion of regulatory processes and registrations including for new products and forms; market demand and acceptance of new products and forms; unforeseen construction or delivery delays including of equipment and commissioning; increases to expected costs; competitive and industry conditions; change in customer buying patterns; and changes in crop yields. These and other risk factors are disclosed in the Company's documents filed from time to time under the Company’s issuer profile on the Canadian Securities Administrators’ System for Electronic Document Analysis and Retrieval+ ("SEDAR") at www.sedarplus.ca and reports and other information filed with or furnished to the United States Securities and Exchange Commission ("SEC") from time to time on the SEC’s Electronic Document Gathering and Retrieval System ("EDGAR") at www.sec.gov, including the Company’s most recent management discussion and analysis ("MD&A") and annual information form. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Certain forward-looking information included herein may also constitute a "financial outlook" within the meaning of applicable securities legislation. Financial outlook involves statements about the Company’s prospective financial performance and financial position that are based on and subject to the assumptions about future economic conditions and courses of action described above as well as management's expectations regarding a strong innovation pipeline, increasing international sales, high cannabis quality and higher potency, commercialization of FAST nano emulsion technology in ingestible formats, and receipt of the EU-GMP certification. Such assumptions are based on management's assessment of the relevant information currently available and any financial outlook included herein is provided for the purpose of helping readers understand management's current expectations and plans for the future as of the date hereof. The actual results of the Company’s operations may vary from the amounts set forth in any financial outlook and such variances may be material. Readers are cautioned that reliance on any financial outlook may not be appropriate for other purposes or in other circumstances and that the risk factors described above and other factors may cause actual results to differ materially from any financial outlook. The Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward looking information is subject to risks and uncertainties that are addressed in the "Risk Factors" section of the MD&A dated August 11, 2026 and there can be no assurance whatsoever that these events will occur. Third-Party Information This news release contains information concerning our industry and the markets in which we operate, including our market position and market share, which is based on information from independent third-party sources. Although we believe these sources to be generally reliable, market and industry data is inherently imprecise, subject to interpretation and cannot be verified with complete certainty due to limits on the availability and reliability of raw data, the voluntary nature of the data gathering process, and other limitations and uncertainties inherent in any statistical survey or data collection process. We have not independently verified any third-party information contained herein. View source version on businesswire.com: https://www.businesswire.com/news/home/20260811435783/en/ Contacts For Investor Relations enquiries, please contact:Max Schwartz, Director of Investor [email protected] For Media enquiries, please contact:Mark McKay, Director of [email protected]

Interested in Organigram Global Inc.? Here are five stocks we like better. Record Q3 performance: Revenue rose 49% year over year to C$105.8 million and adjusted EBITDA jumped 136% to C$13.4 million, driven largely by the Sanity Group acquisition and improved Canadian operations. International expansion is accelerating: Sanity contributed approximately C$40 million in quarterly revenue, lifting international operations to about 35% of consolidated revenue. Organigram is pursuing additional European growth but remains focused on resolving EU GMP certification and flower-supply constraints. Growth requires continued investment: Working-capital spending for German demand pushed free cash flow to a C$3.9 million outflow, and management expects negative full-year free cash flow, although it continues to forecast fiscal 2026 revenue above C$350 million and positive fourth-quarter free cash flow. Three Reasons It’s Time To Get Bullish On Organigram Organigram Global (NASDAQ:OGI) reported record third-quarter fiscal 2026 revenue and adjusted EBITDA, aided by the consolidation of Germany-based Sanity Group and improving performance in several Canadian cannabis categories. Net revenue rose 49% year over year to C$105.8 million, while adjusted EBITDA increased 136% to a record C$13.4 million. The company said Sanity Group, acquired April 15, contributed approximately C$40 million of revenue during the period and accounted for a major shift in Organigram's geographic mix, with international operations representing about 35% of consolidated revenue, compared with roughly 10% before the acquisition. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat OrganiGram’s Turnaround Begins To Blossom “Q3 represents an important milestone for OrganiGram,” Chief Executive Officer James Yamanaka said. “For the first time, our financial results include almost a full quarter of contributions from Sanity Group, providing a clearer picture of a larger, more diversified, and increasingly international cannabis business.” Sanity generated €24.5 million in revenue from the April 15 acquisition date through the end of the quarter, and €25.5 million for the full fiscal quarter, according to Organigram. Yamanaka said the business was performing in line with the company's expectations at the time of the deal. → 3 Dividend Champion Utilities for a Market That Can't Sit Still This Is A Turning Point For OrganiGram Chief Financial Officer Greg Guyatt said Sanity's revenue contribution reached the company’s targeted €25 million quarterly benchmark. He added that Organigram expects the international business to post a stronger fourth quarter as it addresses flower-supply challenges. Adjusted gross margin reached 37%, up 300 basis points from a year earlier and 600 basis points sequentially. The company attributed the increase to Sanity's contribution and operational improvements in Canada. Management said cultivation yields, improved potency and a streamlined product portfolio are expected to support additional gains in the Canadian cost structure. → Take-Two’s Q1 Results Leave GTA 6 Bulls Stuck in the Fog of War General and administrative expenses rose 31% to C$20.6 million, primarily due to Sanity-related expenses and amortization of acquisition-related intangible assets. Still, G&A declined to about 19% of net revenue, down roughly 300 basis points year over year and 600 basis points sequentially. Total SG&A expenses rose to C$32.7 million from C$24.5 million, but fell to 31% of revenue from 34% a year earlier. Guyatt said Sanity's operating expenses were in line with expectations and that future revenue growth could provide further operating leverage. “I would expect revenue to increase meaningfully, but operating expenses to stay sort of relatively low,” he said during the question-and-answer session. Organigram ended the quarter with an 11.1% share of Canada’s recreational cannabis market. The company said it has reduced its SKU count by about 10% year over year as it seeks to simplify its portfolio, reduce operational complexity and concentrate investment behind fewer brands. Management highlighted progress in vape and infused pre-roll products following execution issues in the second quarter. The company completed the rollout of new all-in-one vape hardware and higher-potency liquid diamond products near the end of Q2, along with enhanced quality-control processes. In June, Organigram's all-in-one vape share increased 1.1 percentage points month over month, while declines in the 510 vape segment began to reverse. Infused pre-rolls gained 0.3 percentage points during the month, while the company’s BOXHOT infused pre-rolls increased 0.8 percentage points year over year. Flower remained Organigram’s strongest category. The company ended the quarter with a 12.5% share of the flower market, up two percentage points from a year earlier, and said it achieved its highest share to date in the 3.5-gram format. Average month-end THC potency reached a record 30.4%, while harvested kilograms remained above 30,000 per quarter, up about 25% year over year. Other category results included: Beverage market share of 8.6%, up 3.1 percentage points year over year; the company exited June with more than 10% share as SHRED Sodas and SHRED Shotz gained traction. Concentrates market share of 17.9%, up 3.3 percentage points year over year, maintaining Organigram’s position as Canada’s top licensed producer in the category. Relatively stable edible share year over year, though the company cited sequential pressure from lower-priced live-resin competitors. Organigram plans a broader rollout of its ingestible innovation platform across edibles beginning in September. Organigram said demand across Sanity’s European distribution platform continues to grow, particularly in Germany, where management described supply of EU GMP-compliant cannabis flower as tight. The company is pursuing improved international flower pass rates at its Moncton facility, adding supply partnerships and establishing EU GMP-compliant remediation pathways. Yamanaka said Germany’s regulatory environment has become more stringent on EU GMP requirements, but management believes its supply initiatives can meet most of Sanity’s needs. Organigram is awaiting an EU GMP-related regulatory response after resubmitting its application in April. The company did not provide a timeline for certification. Guyatt said EU GMP certification could meaningfully improve margins by allowing Organigram to avoid using a European processor for cannabis shipped into Germany, though he did not quantify the potential impact. During the quarter, Sanity prepared for an additional Swiss recreational pilot project, advanced plans to enter Poland, launched branded products in the United Kingdom through partnerships, established a Swiss medical partnership and recorded its first medical cannabis sales in Switzerland. The company said recent German changes affecting medical-cannabis reimbursement should have minimal impact because government insurance reimbursements historically represented about 1% of Sanity’s sales. Organigram also said its Australian portfolio is broadly available and that it is working to build physician adoption and prescription growth. In the U.S., the company has paused hemp-derived THC business-development activity pending clarity on a proposed federal ban, while continuing to monitor potential rescheduling and federal legalization developments. Net income was C$105.5 million, compared with a C$6.3 million loss a year earlier. The increase was primarily attributed to C$105.8 million in higher fair-value gains on derivative liabilities, preferred shares and other financial assets. Cash generated from operating activities before working-capital changes improved to C$6.2 million, compared with C$0.7 million of cash used in the prior-year period. However, the company used C$4.3 million in operating activities after working-capital movements, versus generating C$14.6 million a year earlier, as it invested in inventory to support German demand and experienced sales-timing effects. Free cash flow was an outflow of C$3.9 million, compared with an inflow of C$5 million in the prior-year quarter. As of June 30, Organigram had C$11.7 million in cash and cash equivalents and total liquidity of C$49.2 million, including debt facilities. The company reaffirmed its expectation for fiscal 2026 revenue exceeding C$350 million, with adjusted gross margin and adjusted EBITDA meaningfully above fiscal 2025 levels. Management expects negative free cash flow for the full year due to integration and growth-related working-capital needs, but said it continues to anticipate positive free cash flow in the fourth quarter. Organigram Global Inc (NASDAQ: OGI) is a licensed producer of cannabis and hemp products headquartered in Moncton, New Brunswick, Canada. Founded in 2013, the company operates a state-of-the-art cultivation and manufacturing facility spanning more than one million square feet. Organigram holds licenses from Health Canada to produce and sell both medical and adult-use cannabis, and it pursues Good Manufacturing Practice (GMP) certification to support international exports. The company's product portfolio encompasses dried flower, pre-rolled joints, cannabis oils, capsules and soft gels, as well as vapourizer cartridges and extracts. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Organigram Global Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Health Catalyst (HCAT) came out with quarterly earnings of $0.04 per share, beating the Zacks Consensus Estimate of $0.02 per share. This compares to earnings of $0.04 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +100.00%. A quarter ago, it was expected that this provider of data analytics for the health care industry would post earnings of $0.01 per share when it actually produced earnings of $0.02, delivering a surprise of +100%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Health Catalyst, which belongs to the Zacks Medical Info Systems industry, posted revenues of $70.49 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.33%. This compares to year-ago revenues of $80.72 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Health Catalyst shares have not added anything since the beginning of the year versus the S&P 500's gain of 12.8%. While Health Catalyst has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Health Catalyst was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.02 on $62.49 million in revenues for the coming quarter and $0.01 on $262.39 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical Info Systems is currently in the top 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the broader Zacks Medical sector, OrganiGram (OGI), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 11. This cannabis producer is expected to post quarterly loss of $0.01 per share in its upcoming report, which represents a year-over-year change of +66.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. OrganiGram's revenues are expected to be $67.66 million, up 32.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Health Catalyst, Inc. (HCAT) : Free Stock Analysis Report Organigram Global Inc. (OGI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wall Street expects a year-over-year increase in earnings on higher revenues when Rockwell Medical (RMTI) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on August 13, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This maker of products used in the treatment of kidney disease and anemia is expected to post quarterly loss of $0.17 per share in its upcoming report, which represents a year-over-year change of +66%. Revenues are expected to be $17.84 million, up 11% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 30% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Rockwell Medical, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Rockwell Medical will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Rockwell Medical would post a loss of$0.1 per share when it actually produced a loss of -$0.40, delivering a surprise of -300.00%. The company has not been able to beat consensus EPS estimates in any of the last four quarters. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Rockwell Medical doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Among the stocks in the Zacks Medical - Products industry, OrganiGram (OGI), is soon expected to post loss of $0.01 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +66.7%. This quarter's revenue is expected to be $67.66 million, up 32.3% from the year-ago quarter. The consensus EPS estimate for OrganiGram has remained unchanged over the last 30 days. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -100.00%. This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that OrganiGram will beat the consensus EPS estimate. The company could not beat consensus EPS estimates in any of the last four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Rockwell Medical, Inc. (RMTI) : Free Stock Analysis Report Organigram Global Inc. (OGI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Evolus, Inc. (EOLS) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of a loss of $0.01. This compares to a loss of $0.24 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +100.00%. A quarter ago, it was expected that this company would post a loss of $0.14 per share when it actually produced a loss of $0.1, delivering a surprise of +28.57%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Evolus, which belongs to the Zacks Medical - Products industry, posted revenues of $84.08 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.59%. This compares to year-ago revenues of $69.39 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Evolus shares have lost about 8% since the beginning of the year versus the S&P 500's gain of 13%. While Evolus has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Evolus was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.03 on $77.57 million in revenues for the coming quarter and -$0.06 on $329.96 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Products is currently in the bottom 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, OrganiGram (OGI), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 11. This cannabis producer is expected to post quarterly loss of $0.01 per share in its upcoming report, which represents a year-over-year change of +66.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. OrganiGram's revenues are expected to be $67.66 million, up 32.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Evolus, Inc. (EOLS) : Free Stock Analysis Report Organigram Global Inc. (OGI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

TORONTO, August 04, 2026--(BUSINESS WIRE)--Organigram Global Inc. (NASDAQ: OGI) (TSX: OGI), (the "Company" or "Organigram"), Canada's #1 cannabis company by market share and a growing global cannabis platform following its acquisition of Sanity Group GmbH ("Sanity"), announced today it will report earnings results for its third quarter ended June 30, 2026, on Tuesday, August 11, 2026, prior to market open. The Company will host a conference call to discuss its results with details as follows: Date: Tuesday, August 11, 2026Time: 8:00 am Eastern Time To register for the conference call, please use this link:https://events.q4inc.com/analyst/401315111?pwd=q4Su5uEp To ensure you are connected for the full call, we suggest registering a day in advance or at minimum 10 minutes before the start of the call. After registering, a confirmation will be sent through email, including dial in details and unique conference call codes for entry. Registration is open through the live call. To access the webcast:https://events.q4inc.com/attendee/401315111 Participants will receive their details via email. A replay of the webcast will be available within 24 hours after the conclusion of the call at https://www.organigram.ca/investors and will be archived for a period of 90 days following the call. About Organigram Organigram Global Inc. is a NASDAQ Global Select Market and TSX listed company whose wholly owned subsidiaries include Organigram Inc., a licensed cultivator and processor. Through its acquisition of Sanity Group, Organigram participates in the German medical cannabis market and other emerging markets within Europe. Organigram is focused on producing high-quality cannabis for adult consumers, as well as extending the Company's global footprint. Organigram has also developed and acquired a portfolio of cannabis brands, including Edison, Big Bag O’ Buds, SHRED, Monjour, Tremblant, Collective Project, Trailblazer, BOXHOT and DEBUNK. Through its acquisition of Sanity Group, Organigram’s European brands include Vayamed, avaay, ZOIKS, Endosane, VAAY, and Grashaus. Organigram operates facilities in Moncton, New Brunswick and Lac Supérieur, Quebec, with a dedicated edibles manufacturing facility in Winnipeg, Manitoba. The Company also operates two additional cannabis processing facilities in Southwestern Ontario; one in Aylmer and the other in London. The facility in Aylmer houses best-in-class extraction capabilities, and is optimized for formulation refinement, post-processing of minor cannabinoids, and infused pre-roll production. The facility in London will be optimized for labelling, packaging, and national fulfillment. The Company is regulated by Health Canada under the Cannabis Act and the Cannabis Regulations. Forward-Looking Information This news release contains forward-looking information. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects", "estimates", "intends", "anticipates", "believes" or variations of such words and phrases or state that certain actions, events, or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information including expectations regarding market performance, involves known and unknown risks, uncertainties and other factors that may cause actual results, events, performance or achievements of Organigram Global to differ materially from current expectations or future results, performance or achievements expressed or implied by the forward-looking information contained in this news release. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information include factors and risks disclosed in the Company’s most recent annual information form, management’s discussion and analysis, and other Company documents filed from time to time on SEDAR+ (see www.sedarplus.ca) and filed or furnished to the Securities and Exchange Commission on EDGAR (see www.sec.gov). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed time frames or at all. The forward-looking information included in this news release are made as of the date of this news release and the Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. View source version on businesswire.com: https://www.businesswire.com/news/home/20260804462233/en/ Contacts For Investor Relations enquiries: Max Schwartz, Director of Investor [email protected] For Media enquiries: Mark McKay, Director of Communications & Digital [email protected]