Organigram Global Inc (NASDAQ:OGI), Canada’s #1 recreational cannabis company by market share, stock rose 6.64% (As on December 17, 11:18:28 AM UTC-4, Source: Google Finance) after the company in FY25 maintained recreational market leadership across Canada with 11.9% share of the market. In fiscal 2025, the company acquired Motif Labs Ltd. (“Motif”), expanding Ontario footprint and extraction capabilities, becoming Canada’s #1 cannabis company by market share and the leader in pre-rolls and vapes, while realizing approximately $7.1 million of $15 million in identified synergies to date. The company also acquired Collective Project Limited and entered both the Canadian and U.S. cannabinoid beverages market. OGI identified genetic markers for powdery mildew resistance and began breeding resistance into key cultivar which is expected to reduce plant care and increase yields over time. Further, the company leveraged investment in Phylos Bioscience Inc. to achieve consistent seed-based cultivation while increasing room turns and reducing labour costs.

OGI in the fourth quarter of FY25 said that net loss widened to $38 million, from a loss of $5.4 million in the prior year period. The increase is mainly due to non-cash changes in fair value of derivative liabilities, preferred shares and other financial assets. The company had reported the adjusted revenue growth of 79 percent to $80.1 million in the fourth quarter of FY25, missing the analysts’ estimates for revenue of $73 million, according to analysts polled by FactSet. The increase was due to contributions from the Motif acquisition, higher recreational cannabis and international sales. Adjusted Gross Margin increased to $30.6 million, or 38% of net revenue, compared to $16.5 million, or 37%, in Q4 Fiscal 2024, largely due to higher international sales, improved product mix, selected price increases, and lower cultivation and post-harvest costs. Adjusted EBITDA increased to $9.8 million compared to $5.9 million in Q4 Fiscal 2024. Net Loss increased to $38.0 million, compared to a net loss of $5.4 million in Q4 Fiscal 2024. Net Cash (used in) Provided by Operating Activities increased to $(1.5) million, compared to cash provided of $8.9 in Q4 Fiscal 2024 due to increased investment in working capital. Cash provided in operating activities before working capital changes increased 161% to $3.1 million from $1.2 million in Q4 Fiscal 2024.

Organigram is expecting net revenue to exceed $300 million in fiscal 2026 along with margin expansion supported by increasing domestic and international demand, stronger cultivation performance, streamlined logistics, and product mix.