OrganiGram Q2 Loss Beats Revenue Estimates, Shares Down 26.7% YTD

OrganiGram reported a Q2 loss of $0.05 per share, beating the Zacks Consensus Estimate of a loss of $0.03. Revenue came in at $45.69 million, beating estimates by 8.09%. The company has underperformed the market this year, with shares down 26.7%. The Zacks Rank is #4 (Sell) due to an unfavorable estimate revisions trend.

Organigram Holdings Inc. (OGI) reported its second-quarter (Q2) 2025 financial results, showcasing significant improvements in both sales and profitability. The company's net sales rose by 74% year-over-year (YoY) to $45.7 million, surpassing the consensus estimate of $42.28 million [1]. This growth was primarily driven by contributions from the Motif acquisition and organic growth in recreational and international sales.

Adjusted EBITDA climbed to CA$4.9 million from a loss of CA$1 million a year ago, reflecting the company's improved operational efficiency. Gross revenue increased by 79% to CA$102.8 million, with the adjusted gross margin reaching 33% of net revenue, up from 31% a year ago. The increase in gross margin was primarily attributed to higher average selling prices, product mix, and international sales [2].

Organigram's 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. She expects this momentum to continue as Organigram strengthens its leadership in Canada and capitalizes on the seasonally stronger back half of the year.

The company also reported a Q2 net income of CA$42.5 million, compared to a net loss of $27.1 million a year ago. This improvement was primarily driven by higher fair value gains recognized on top-up rights of BAT and other financial instruments. The company's total cash position stood at approximately $83.4 million, with negligible debt [2].

However, Organigram's stock has underperformed the market this year, with shares down 26.7%. The Zacks Rank is #4 (Sell) due to an unfavorable estimate revisions trend [3]. Despite the strong Q2 results, the company faces challenges in maintaining this momentum and reversing the downward trend in its stock price.

References:
[1] https://www.benzinga.com/news/earnings/25/05/45351523/organigram-lights-up-q2-with-74-sales-surge-profitable-turn
[2] https://www.stocktitan.net/news/OGI/organigram-reports-record-second-quarter-fiscal-2025-5i7lnq5rhvkf.html
[3] https://www.zacks.com/stock/quote/ogi