OrganiGram Q2 Earnings Miss Revenue Estimates, Posts Loss of $0.13 per Share

OrganiGram reported a Q2 loss of $0.13 per share, missing revenue estimates by 29.59%. The company's shares have lost 26.7% YTD. The Zacks Rank remains at #4 (Sell) due to an unfavorable estimate revisions trend. The current consensus EPS estimate is -$0.02 for Q3 and -$0.16 for FY22.

OrganiGram Holdings Inc. (OGI) reported a mixed second quarter for fiscal year 2025, with a loss of $0.13 per share, missing revenue estimates by 29.59%. The company's shares have lost 26.7% year-to-date (YTD), and the Zacks Rank remains at #4 (Sell) due to an unfavorable estimate revisions trend [1]. The current consensus EPS estimate is -$0.02 for Q3 and -$0.16 for FY22.

Despite the earnings setback, OrganiGram achieved a significant turnaround in profitability, with net income reaching $42.5 million compared to a net loss of $27.1 million in the same period last year. The company reported a 74% increase in net revenue year-over-year to $65.6 million, with gross sales up 79% to over $100 million [1]. Adjusted EBITDA improved to $4.9 million from -$1 million last year, and the company maintained a strong cash position of $83.4 million with negligible debt.

OrganiGram's performance in Q2 2025 was driven by strong sales growth and operational efficiencies, with the company maintaining its leadership in the Canadian cannabis market, particularly in the vapes and pre-rolls categories. The company's strategic initiatives, including the expansion of its beverage production and the integration of the Motif acquisition, have positioned it well against competitors in a growing market [1].

However, the company's stock price surged 11.8% in premarket trading following the earnings call, indicating market optimism despite the earnings miss. OrganiGram is targeting a 40% gross margin by fiscal 2026 and expects to be cash flow positive for the full year. The company anticipates stronger international sales in the latter half of the year and is aiming for $5 million in synergies from the Motif acquisition, with an increase to $15 million next year [1].

Despite the positive outlook, OrganiGram faces several challenges, including market saturation, regulatory changes, intense competition, supply chain disruptions, and broader economic conditions. The company's strategic focus on innovation and market leadership will be crucial in navigating these challenges and capitalizing on growth opportunities in the evolving cannabis industry [1].

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-organigrams-q2-2025-revenue-surges-74-93ch-4039106