Organigram Global Inc. (NASDAQ:OGI) reported weaker second-quarter fiscal 2026 results as declining vape and infused pre-roll sales weighed on revenue and profitability.

Though the Canadian cannabis producer said operational changes and its recent acquisition of Germany-based Sanity Group position the company for stronger performance in the second half of the year.

• Organigram Global shares are sliding. Why are OGI shares down?

Organigram Q2 Revenue Falls As Vape Sales And Margins Weaken

The company reported a second-quarter loss of one cent, with sales of $43.59 million, missing the consensus of $52.06 million.

Adjusted EBITDA fell 82% to $0.9 million.

CEO James Yamanaka said the quarter reflected underperformance in vapes and temporary production issues in infused pre-rolls, alongside slower industry growth.

"We acted quickly to address these issues, and the operational changes and product enhancements we have implemented are already beginning to stabilize performance," Yamanaka said.

Margin Pressure and Net Loss Impact Results

Organigram reported an adjusted gross margin of $18.4 million, or 31% of net revenue, down from 33% a year earlier. The decline was tied to changes in product mix and higher product returns.

Sanity Group Deal Expected To Support Growth

Organigram completed its acquisition of Germany-based Sanity Group GmbH, which it expects will generate roughly 25 million euros in average quarterly revenue over the next year.

CFO Greg Guyatt said the financial impact from earlier operational and competitive challenges was "largely realized" in the first half of fiscal 2026.

Organigram Raises Fiscal 2026 Revenue Outlook

Following the Sanity Group acquisition, Organigram raised its fiscal 2026 guidance and now expects net revenue to exceed $350 million, up from its prior forecast of more than $300 million. Analysts expect sales of $341.45 million.

The company also expects adjusted gross margin and adjusted EBITDA to exceed fiscal 2025 levels, while projecting free cash flow to be approximately break-even.

OGI Price Action: Organigram Global shares were down 14.12% at $1.13 at the time of publication on Tuesday, according to Benzinga Pro. Over the past month, OGI has declined about 20.2% versus a 8.3% rise in the S&P 500 and is down roughly 33% year-to-date compared to the index’s 7% gain.

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