Organigram Reports Q4 Revenue of $123.3 Million, Up 76% Year-Over-Year
- Significant Revenue Growth: Organigram achieved gross revenue of $123.3 million in Q4 Fiscal 2025, a 76% year-over-year increase, primarily driven by contributions from the Motif Labs acquisition and enhanced international sales, solidifying its leadership position in the Canadian market.
- Substantial EBITDA Improvement: Adjusted EBITDA rose to $9.8 million, reflecting a 69% increase year-over-year, showcasing the company's success in enhancing operational efficiency and expanding market share, which is expected to lay a strong foundation for future profitability.
- International Market Expansion: The company recorded international revenue of $26.3 million in Fiscal 2025, a remarkable 173% increase, indicating Organigram's robust growth potential in global markets, particularly in the rapidly evolving cannabis beverage sector.
- Strategic Acquisition Impact: By acquiring Collective Project, Organigram successfully entered the Canadian and U.S. cannabinoid beverage markets, which is anticipated to further drive revenue growth and realize approximately $7.1 million in identified synergies.
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- Strategic Investment Expansion: Organigram Global Inc. has increased its investment in Phylos Bioscience from $7 million to $10 million, aiming to enhance its leadership in seed-based cannabis cultivation by securing priority access to advanced genetics and a robust seed pipeline, which is expected to strengthen its competitive position in both medical and recreational cannabis markets.
- Loan Agreement Revision: The investment includes a revised loan agreement with an additional $3 million advance, maturing on May 25, 2028, ensuring Organigram's exclusivity for selected autoflower cultivars over the next five years, further solidifying its market position.
- Market Share Growth: Through its partnership with Phylos, Organigram plans to scale seed-based production by 2030, which is anticipated to significantly enhance product consistency and economic benefits, thereby meeting the increasing consumer demand.
- Technology-Driven Advantage: Organigram began utilizing seed-based production technology in 2023, marking a transformation in its operational model, which is expected to yield long-term economic benefits and competitive advantages in the market.
- Innovation Investment: Organigram accelerates its innovation strategy with a $3 million investment in Phylos Bioscience, ensuring delivery of 30 new next-generation genetics annually through 2030, thereby strengthening its leadership in seed-based cultivation.
- International Exclusivity: The company secures five years of exclusivity for its chosen cannabis genetics in international markets including Canada, Australia, the UK, Germany, and Israel, allowing flexibility to add new territories as it expands globally, enhancing its product differentiation strategy.
- Loan Consolidation: Under the amended loan agreement, Organigram consolidates its existing investment with a new $3 million advance, resulting in a total loan principal of $10 million, maturing on May 25, 2028, which enhances the company's financial flexibility.
- Market Advantage: By gaining priority access to Phylos' autoflower genetics, Organigram not only broadens its product portfolio but also provides a significant economic advantage in meeting the needs of consumers and patients, further solidifying its competitive position in both medical and recreational markets.
Market Reaction to Executive Order: Cannabis stocks faced a decline after President Trump signed an executive order reclassifying marijuana, which, while not legalizing it federally, may offer tax reductions and benefits for cannabis businesses.
Top Performing Stocks: Organigram Global (OGI) leads the list of cannabis stocks with a Buy rating and a YTD performance of 31.06%, while Cresco Labs (CRLBF) and Trulieve Cannabis (TCNNF) follow with Hold ratings and strong YTD gains.
Quant Ratings Overview: Seeking Alpha’s Quant Ratings evaluate stocks based on valuation, growth, momentum, and profitability, with ratings ranging from 1 to 5; a score of 3.5 or above is considered bullish.
Notable YTD Performances: Despite holding ratings, stocks like Ascend Wellness (AAWH) and Jushi Holdings (JUSHF) have shown impressive YTD gains of 176.92% and 170.10%, respectively.
Quarterly Performance: OrganiGram reported a quarterly loss of $0.20 per share, significantly worse than the expected loss of $0.01, marking a 1,900% earnings surprise. Revenue for the quarter was $56.91 million, exceeding estimates by 7.1% and up from $32.77 million a year ago.
Stock Outlook: The company's stock has underperformed compared to the S&P 500 this year, with a current Zacks Rank of #3 (Hold), indicating expected performance in line with the market. Future stock movements will depend on earnings estimate revisions and management's commentary.
Industry Context: OrganiGram operates in the Medical - Products industry, which is currently ranked in the bottom 30% of Zacks industries, suggesting potential challenges ahead. The performance of the stock may be influenced by the overall industry outlook.
Competitor Insights: Tilray Brands, another company in the same industry, is expected to report a quarterly loss of $0.14 per share, with a slight revenue decline anticipated. This highlights the broader challenges facing cannabis producers in the current market environment.
- Significant Revenue Growth: Organigram achieved gross revenue of $123.3 million in Q4 Fiscal 2025, a 76% year-over-year increase, primarily driven by contributions from the Motif Labs acquisition and enhanced international sales, solidifying its leadership position in the Canadian market.
- Substantial EBITDA Improvement: Adjusted EBITDA rose to $9.8 million, reflecting a 69% increase year-over-year, showcasing the company's success in enhancing operational efficiency and expanding market share, which is expected to lay a strong foundation for future profitability.
- International Market Expansion: The company recorded international revenue of $26.3 million in Fiscal 2025, a remarkable 173% increase, indicating Organigram's robust growth potential in global markets, particularly in the rapidly evolving cannabis beverage sector.
- Strategic Acquisition Impact: By acquiring Collective Project, Organigram successfully entered the Canadian and U.S. cannabinoid beverage markets, which is anticipated to further drive revenue growth and realize approximately $7.1 million in identified synergies.
Q4 Financial Performance: Organigram Global reported a Q4 net loss of C$38.0 million, significantly higher than the C$5.4 million loss in the same quarter of the previous fiscal year, primarily due to non-cash changes in fair value of financial assets.
Revenue Growth: The company experienced a 79% increase in net revenue, reaching C$80.1 million, attributed to the Motif acquisition, increased recreational cannabis sales, and higher international sales.








