Second consecutive quarter of record revenue, strong adjusted EBITDA growth, Free Cash Flow, and continued international expansion

TORONTO--(BUSINESS WIRE)--August 13, 2025-- 

Organigram Global Inc. $(OGI)$ (TSX: OGI), (the "Company" or "Organigram"), Canada's #1 cannabis company by market share(1) , is pleased to announce its record results for the third quarter ended June 30, 2025 ("Q3 Fiscal 2025" or "Q3").

Q3 FISCAL 2025 HIGHLIGHTS

   --  Record Gross Revenue: $110.2 million (+73% year-over-year, +7.2% 
      sequential). 
 
   --  Record Net Revenue: $70.8 million (+72% year-over-year, +7.9% 
      sequential). 
 
   --  International Revenue: $7.4 million (+208% year-over-year, +21% 
      sequential). 
 
   --  Adjusted EBITDA2: $5.7 million (+64% year-over-year, +16% sequential). 
 
 
   --  Free Cash Flow2: $5.0 million versus ($4.8) million in the prior year 
      period. 
 
   --  Motif Synergies: $4.2 million to date, approximately $11 million 
      annualized; on track to hit $15 million target within 24 months of 
      acquisition. 
 
   --  Total Cash: $85.9 million3, including $35.9 million of unrestricted 
      cash; and negligible debt. 
 
   --  #1 Market Share in Canada: #1 in vapes, #1 in pre-rolls, #1 in milled 
      flower, #1 in concentrates, #3 in edibles, #3 in dried flower1. 
 
   --  Canadian Beverage Growth: Expanded distribution in Alberta, 
      Saskatchewan, and Manitoba. 
 
   --  U.S. Expansion: Began generating U.S. revenue, expanded distribution 
      into new states and gained important key account listings; launched U.S. 
      DTC (direct-to-consumer) website expanding hemp-derived THC beverage 
      availability to 25 states subsequent to quarter end. 
 
   --  Record Moncton Harvest: of 24,210 kilograms, driven by capacity 
      enhancing projects and seed-based cultivation; entire Moncton facility 
      harvest averaged over 29% THC potency. 

"In Q3, we delivered our second consecutive quarter of record revenue driven by the acquisition of Motif, Collective Project, and a further optimization of our product and brand portfolio," said Beena Goldenberg, CEO of Organigram. "With our strong Canadian market leadership now in place, we are committed to bringing our Canadian successes, underpinned by innovation and a commitment to quality, to international markets. We have grown our export business, expanded into the US, and are set to launch new brands internationally, all building towards our ambition of becoming a truly global cannabis player."

THIRD QUARTER FISCAL 2025 FINANCIAL OVERVIEW

   --  Net revenue: 
 
          --  Net revenue increased 72% to $70.8 million, from $41.1 million 
             in the third quarter ended June 30, 2024 ("Q3 Fiscal 2024"), 
             primarily driven by contributions from the Motif Labs Ltd. 
             ("Motif") acquisition and increased international sales. 
 
 
 
   --  Adjusted gross margin2: 
 
          --  Adjusted gross margin was $24.2 million, or 34% of net revenue, 
             compared to $14.6 million, or 36%, in Q3 Fiscal 2024. 
 
          --  Organigram's standalone adjusted gross margin excluding Motif 
             was approximately 37% in Q3. Management expects adjusted gross 
             margin to improve over the coming quarters as Motif 
             acquisition-related synergies are realized. 
 
 
 
   --  Selling, general & administrative ("SG&A") expenses: 
 
          --  SG&A increased 70% to $24.5 million from $14.4 million in Q3 
             Fiscal 2024. The increase was attributable to the inclusion of 
             Motif SG&A in Organigram's consolidated financials as well as 
             higher trade investments to support the growth of the business. 
 
          --  As a proportion of net revenue, SG&A remained flat at 35%, 
             compared to 35% in Q3 Fiscal 2024. 
 
          --  Included in SG&A was an incremental investment of $1.2 million 
             into ERP versus the prior year and higher amortization of $1.6 
             million associated with Motif and Collective Project Limited 
             ("Collective Project") acquisitions. 
 
 
 
   --  Net loss: 
 
          --  Net loss was $6.3 million compared to net income of $2.8 million 
             in Q3 Fiscal 2024. The decrease in net income from the prior 
             period is primarily attributable to higher fair value changes 
             recognized in relation to the preferred shares and top-up-rights 
             held by British American Tobacco p.l.c ("BAT"), and other 
             financial instruments. 
 
 
 
   --  Adjusted EBITDA4: 
 
          --  Adjusted EBITDA was $5.7 million compared to $3.5 million in 
             adjusted EBITDA in Q3 Fiscal 2024. The increase was primarily 
             attributable to higher recreational revenue, including Motif 
             contributions, and higher international revenue. 
 
 
 
   --  Net cash from operating activities: 
 
          --  Net cash from operating activities was $14.6 million, compared 
             to cash used of $3.7 in Q3 Fiscal 2024. The increase was primarily 
             attributable to improved working capital utilization. 
 
 

"In Q3 we delivered solid revenue and adjusted EBITDA growth sequentially and year-over-year while making significant progress toward the full integration of our recent acquisitions," said Greg Guyatt, CFO of Organigram. "As our business continues to scale domestically and abroad, and the realization of cost synergies related to our Motif acquisition begin to positively impact future earnings, we are confident in our trajectory toward sustained profitability and free cash flow in the near-term."

CANADIAN RECREATIONAL MARKET INTRODUCTIONS

As Canada's market leader in recreational cannabis, Organigram remains committed to delivering consumer focused innovations and products to its customers. Some notable recent highlights include:

   --  SHRED Max10 Party Pack: Ten individual 10mg gummies separately packaged 
      within a container to provide consumers with 100mg THC per container. 
 
   --  Big Bag O' Buds: New strains in Blueberry Dream, UK Cheddar Cheese, and 
      Comboz (Ultra Sour & Blueberry Dream). 
 
   --  SHRED Flower Power: The return of the OG SHRED blend -- A sativa blend 
      boasting strong sweet and floral aromas. 
 
   --  BOXHOT IPRs: Pear Herer & Strawberry Diesel infused pre-rolls. 
 
   --  Trailblazer Blunts: Tube-style blunts wrapped in tea leaf-based blunt 
      paper for a smooth and unique flavour profile. 
 
   --  Rizzlers Vapes: Lime Frizz & Passion Plunge all-in-one switch-hit 
      vapes. 

INTERNATIONAL SALES

   --  In Q3 Fiscal 2025, Organigram achieved $7.4 million in international 
      sales compared to $2.4 million in the same prior year period, and expects 
      to continue growing its international sales over time. 
 
   --  Organigram continues to await EU-GMP certification for its Moncton 
      facility. 
 
   --  In Q3 Fiscal 2025, Organigram began generating U.S. recreational 
      revenue from hemp-derived THC beverage pursuant to the acquisition of 
      Collective Project. 

BALANCE SHEET & LIQUIDITY

   --  As of June 30, 2025, the Company had total cash (including restricted 
      cash and short-term investments) of $85.9 million. 
 
Select Key Financial Metrics 
 (in $000s unless otherwise indicated)      Q3-2025      Q3-2024     % Change 
----------------------------------------  -----------  -----------  ---------- 
Gross revenue                             110,205       63,605         73% 
----------------------------------------  -------      -------      ----- 
Excise taxes                              (39,413)     (22,545)        75% 
----------------------------------------  -------      -------      ----- 
Net revenue                                70,792       41,060         72% 
----------------------------------------  -------      -------      ----- 
Cost of sales                              48,369       27,173         78% 
----------------------------------------  -------      -------      ----- 
Gross margin before fair value changes 
 to biological assets & inventories 
 sold                                      22,423       13,887         61% 
----------------------------------------  -------      -------      ----- 
Realized fair value on inventories sold 
 and other inventory charges              (14,461)     (13,728)         5% 
----------------------------------------  -------      -------      ----- 
Unrealized gain on changes in fair value 
 of biological assets                      18,184       13,849         31% 
----------------------------------------  -------      -------      ----- 
Gross margin                               26,146       14,008         87% 
----------------------------------------  -------      -------      ----- 
Adjusted gross margin(1)                   24,226       14,586         66% 
----------------------------------------  -------      -------      ----- 
Adjusted gross margin %(1)                     34%          36%        (2)% 
----------------------------------------  -------      -------      ----- 
Selling (including marketing), general & 
 administrative expenses                   24,504       14,376         70% 
----------------------------------------  -------      -------      ----- 
Net (loss) income                          (6,294)       2,818              nm 
----------------------------------------  -------      -------      ---------- 
Adjusted EBITDA(1)                          5,694        3,465         64% 
----------------------------------------  -------      -------      ----- 
Net cash used in operating activities 
 before working capital changes              (686)        (182)       277% 
----------------------------------------  -------      -------      ----- 
Net cash provided by (used in) operating 
 activities after working capital 
 changes                                   14,626       (3,730)             nm 
----------------------------------------  -------      -------      ---------- 

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August 13, 2025 06:00 ET (10:00 GMT)