Organigram Lights Up Q2 With 74% Sales Surge, Profitable Turn

Cannabis grower Organigram Holdings Inc OGI reported second-quarter 2025 net sales of $45.7 million (approximately CA$65.6 million). That’s up 74% year-over-year, beating the consensus of $42.28 million.

Gross revenue increased 79% to CA$102.8 million, the company reported on Monday.

Contributions from the Motif acquisition and organic growth in recreational and international sales primarily drove the sales increase.

Organigram CEO Beena Goldenberg noted that the company is “increasing sales into key international markets,” including Germany and the U.S.’s hemp-derived beverage space.

:We expect this momentum to continue as we further strengthen our leadership in Canada and head into the seasonally stronger back half of the year,” she said.

Also Read: Why Pre-Rolls Are Cannabis’ Most Profitable Format, From California To Canada

Adjusted gross margin was CA$21.9 million, or 33% of net revenue, compared to CA$11.6 million, or 31% a year ago. The increase was primarily attributed to higher average selling prices, product mix, and international sales.

• The adjusted gross margin of 33% reflects Motif’s margin before full synergy realization.
• Organigram's standalone adjusted gross margin excluding Motif was 37% in the quarter.
• Management expects the adjusted gross margin to improve as Motif’s acquisition-related synergies are realized over the coming quarters.

During Q2, the company made “incremental investments” into Motif, allowing Organigram to further increase the expected synergy realization to $15 million annually from its prior estimate of $10 million, said Greg Guyatt, CFO.

The company reported adjusted EBITDA of CA$4.9 million compared to a loss of $1 million a year ago. This was primarily attributable to higher recreational sales, including Motif contributions, international revenue, and operational efficiency gains.

Organigram reported a second-quarter net income of CA$42.5 million, compared to a net loss of $27.1 million a year ago.

• The increase in net income from the prior period is primarily attributable to higher fair value gains recognized on top-up rights of BAT and other financial instruments.

In April, Organigram acquired Collective Project Limited for CA$6.2 million. There are potential milestone payments, and potential earnout payments totaling up to CA$24 million for the twelve-month periods ending Sept. 30, 2025, and Sept, 30, 2026.

Price Action: OGI stock is down 11% at $1.54 during the premarket session on last check Tuesday.

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