Q3 2026 Organigram Global Inc Earnings Call Transcript
Key Points
- 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.
Thank you. Matthew, I'll be your conference operator today. This time, I'd like to welcome everyone to the Organigram Global third-quarter fiscal 2026 earnings conference call. (Operator Instructions)
I'll now turn the call over to Max Schwartz, Director of Investor Relations.
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,
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