Organigram Reports Record Fourth Quarter and Fiscal 2025 Results

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If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.“Fiscal 2025 was marked by purposeful growth and a continued shift toward platforms that scale at home and abroad,” said Peter Amirault, Executive Chair. “Our acquisitions broadened our capabilities in extraction, beverages, and brand-led innovation, while strengthening our leadership in core categories. We expanded our international presence and advanced the technologies that will support the next phase of our portfolio, from seed-based cultivation to fast-acting ingestible delivery. These initiatives reflect a consistent strategy: support future growth through operational scale, IP, and market access to compete globally. With our incoming Chief Executive Officer, James Yamanaka, whose global experience will be invaluable, Organigram is positioned to translate its domestic leadership into sustained international growth and long-term value creation.”“As we near the close of the calendar year, we are pleased with our performance in Fiscal 2025 and are looking forward to the year ahead. We delivered international growth, realized synergy savings from the Motif integration, and improved our adjusted gross margin and adjusted EBITDA through capacity expansion and operational efficiencies,” said Greg Guyatt, Chief Financial Officer. “Looking to Fiscal 2026, we believe we are well-positioned for strong revenue growth with net revenue expected to exceed $300 million in Fiscal 20266, along with margin expansion supported by increasing domestic and international demand, stronger cultivation performance, streamlined logistics, and product mix.”Select Balance Sheet Metrics (in $000s)SEPTEMBER 30, 2025SEPTEMBER 30, 2024% ChangeCash, restricted cash & short-term investments84,420133,426(37)%Biological assets & inventories123,95482,52450%Other current assets76,52346,26965%Accounts payable & accrued liabilities89,24747,09789%Working capital158,738208,897(24)%Property, plant & equipment122,97796,231(3)%Total assets562,211407,86037%Total liabilities213,081101,871109%Shareholders’ equity349,130305,98913%Select Key Financial Metrics(in $000s unless otherwise indicated)Fiscal 2025Fiscal 2024% ChangeGross revenue403,024247,17763%Excise taxes(143,841)(87,336)65%Net revenue259,183159,84162%Cost of sales174,850111,39057%Gross margin before fair value changes to biological assets & inventories sold84,33348,45174%Realized loss on fair value on inventories sold and other inventory charges(67,125)(52,078)29%Unrealized gain on changes in fair value of biological assets73,00851,15143%Gross margin90,21647,52490%Adjusted gross margin191,00453,93469%Adjusted gross margin %135%34%1%Selling (including marketing), general & administrative expenses290,59664,80640%Adjusted EBITDA121,8558,416160%Net loss(24,759)(45,440)(46)%Net cash (used in) provided by operating activities before working capital changes(5,468)(11,085)(51)%Net cash (used in) provided by operating after working capital changes(7,591)3,872nm1 Adjusted gross margin, adjusted gross margin %, and adjusted EBITDA are non-IFRS financial measures not defined by and do not have any standardized meanings under IFRS, as issued by the International Accounting Standards Board, and might not be comparable to similar financial measures disclosed by other issuers; please refer to “Non-IFRS Financial Measures” in this press release for more information.2 Excluding non-cash share-based compensation.Select Key Financial Metrics(in $000s unless otherwise indicated)Q4-2025Q4-2024% ChangeGross revenue123,25069,87776%Excise taxes(43,189)(25,179)72%Net revenue80,06144,69879%Cost of sales52,05330,90768%Gross margin before fair value changes to biological assets & inventories sold28,00813,791103%Realized loss on fair value on inventories sold and other inventory charges(25,406)(15,365)65%Unrealized gain (loss) on changes in fair value of biological assets29,23618,79056%Gross margin31,83817,21685%Adjusted gross margin130,57816,54385%Adjusted gross margin %138%37%1%Selling (including marketing), general & administrative expenses226,56514,22687%Adjusted EBITDA19,8435,86068%Net loss(37,964)(5,433)599%Net cash (used in) provided by operating activities before working capital changes3,1131,191161%Net cash (used in) provided by operating activities(1,452)8,893nm1 Adjusted gross margin, adjusted gross margin %, and adjusted EBITDA are non-IFRS financial measures not defined by and do not have any standardized meanings under IFRS, as issued by the International Accounting Standards Board, and might not be comparable to similar financial measures disclosed by other issuers; please refer to “Non-IFRS Financial Measures” in this press release for more information.Adjusted Gross Margin Reconciliation(in $000s unless otherwise indicated)Q4-2025Q4-2024Fiscal 2025Fiscal 2024Net revenue$80,061$44,698$259,183$159,841Cost of sales before adjustments49,48328,155168,179105,907Adjusted gross margin30,57816,54391,00453,934Adjusted gross margin %38%37%35%34%Less:Provisions of inventories and biological assets1,6032,0433,0854,657Provisions to net realizable value9677091,133826Incremental fair value component on inventories sold from acquisitions——2,453—Gross margin before fair value adjustments28,00813,79184,33348,451Gross margin % (before fair value adjustments)35%31%33%30%Add:Realized loss on fair value on inventories sold and other inventory charges(25,406)(15,365)(67,125)(52,078)Unrealized gain on changes in fair value of biological assets29,23618,79073,00851,151Gross margin31,83817,21690,21647,524Gross margin %40%39%35%30%Adjusted EBITDA Reconciliation(in $000s unless otherwise indicated)Q4-2025Q4-2024Fiscal 2025Fiscal 2024Net loss as reported(37,964)(5,433)(24,759)(45,440)Add/(deduct):Investment income, net of financing costs(73)(960)(1,150)(3,311)Income tax (recovery) expense(3,761)30(13,770)—Depreciation, amortization, and (gain) loss on disposal of property, plant and equipment (per statement of cash flows)4,9603,07317,97512,836Share-based compensation (per statement of cash flows)9471,0934,2177,182Legal provisions (recoveries), government subsidies, insurance recoveries and other non-operating expenses (income)42,5396,64617,79913,080ERP implementation costs9514653,5401,636Transaction costs448746,580915Provisions (recoveries) and net realizable value adjustments related to inventory and biological assets(1,260)(673)(1,665)6,410Research and development expenditures, net of depreciation3,0561,54510,60510,869Provision for expected credit losses—4,239Adjusted EBITDA$9,843$5,860$19,372$8,416The Company will host a conference call to discuss its results with details as follows: Date: December 16, 2025 Time: 8:00 am Eastern TimeTo register for the conference call, please use this link: https://registrations.events/direct/Q4I9676638 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/724034228 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.This news release refers to certain financial performance measures (including adjusted gross margin, adjusted gross margin % and adjusted EBITDA) that are not defined by and do not have a standardized meaning under International Financial Reporting Standards (“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 and 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 & 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 derive 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 (loss) 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 (recoveries) and impairment of inventories and biological assets; (iv) 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 excludes the effects of non-cash fair value adjustments on inventories and biological assets, which are required by IFRS.The most directly comparable measure to adjusted EBITDA, calculated in accordance with IFRS is net income (loss) and please refer to “Adjusted Gross Margin and Adjusted EBITDA Reconciliation” in 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 adjustments and please refer to “Adjusted Gross Margin and Adjusted EBITDA Reconciliation” in this press release for a reconciliation to such measure.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 recent acquisition of Collective Project Limited, Organigram participates in the US and Canadian cannabinoid beverages markets.Organigram is focused on producing high-quality cannabis for adult consumers, as well as developing international business partnerships to extend 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. 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 Company is regulated by Health Canada under the Cannabis Act and the Cannabis Regulations (Canada). https://www.businesswire.com/news/home/20251216309580/en/ContactsMax Schwartz, Director of Investor Relations investors@organigram.caFor Media enquiries, please contact: Megan McCrae, Senior Vice President, Global Brands and Corporate Affairs megan.mccrae@organigram.ca#distroPostmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. 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