OrganiGram Holdings reports 62% revenue growth in fiscal 2025, driven by international sales and strategic acquisitions, with strong outlook for fiscal 2026.

Ending September 2025, we held strong share in Canada's four largest markets, Ontario, Quebec, British Columbia and Alberta. We are number one in all these markets with the exception of Quebec where we ranked fourth in fiscal 25 but continue to grow. We saw even higher market share across almost every other province, notably 34.2% in New Brunswick, 23.7% in Newfoundland, 14.9% in Saskatchewan and 12.2% in Nova Scotia. Category performance varied throughout the year. We saw gains in whole flour, edibles, beverages, non hash concentrates and infused pre rolls while competition increased in vapes, milled flour and overall pre rolls. Looking ahead to fiscal 26, we have several opportunities to grow in Canada. In Quebec, we recently launched our VAPE portfolio with very positive indicators to date and are extremely excited about other opportunities in the province such as expanding our infused pre-roll line offerings and launching beverages in line with our consumer centric approach and dedication to innovation. We also have several compelling products launching this year that we know consumers will absolutely love. We are preparing to launch a new family of coated infused pre rolls, new all in one vape hardware and in beverages consumers can expect new formats and flavors, including the exciting launch of Shred Soda to support our beverage business. Our manufacturing line in Winnipeg is now ramping up and expected to begin production over the coming months. The key focal point for us really in the Canadian business this year is increasing the margin profile or domestic product mix and continue to optimize our operational footprint for capacity, throughput and streamline logistics work that also directly supports our international growth objectives. It's worth noting though that in Q1 of this fiscal year we experienced a temporary market share impact as a result of the eight week BC General Employees Union strike which ended on October 26th. During the strike, only small scale local growers were able to ship products directly to retail stores into the province which affected the market share of most large LPs. We are already seeing a strong rebound towards a historical share of the province though from an international front perspective. Earlier this year we formalized an international business unit focused on expanding our global footprint. The team's focus in fiscal 25 was on accelerating our international wholesale business and exporting our brands. Expanding our brands into new markets we achieved three major international milestones of fiscal 25. First, we delivered the highest international sales in the company's history reaching $26.3 million, up 171% from $9.7 million in fiscal 24. This growth was supported by our partnership with Sanity Group in Germany along with Flower shipments to customers in the UK and Australia. Second, we commenced sales in the United States with hemp derived THC beverages under our collective project and Fetch brands. These products are now available in multiple bricks and mortar locations in 12 states and online in 24 states through our DTC platform. Third, we expanded our U.S. portfolio with the launch of Happily a Functional Edibles lifestyle brand. These products combined cannabinoids of functional ingredients, leveraging our fast technology for faster onset and predictable effects. Given the recent provision in the US Federal Funding act that would effectively ban hemp derived THC by November 13, 2026, we are monitoring efforts to repeal, replace or delay the amendment. Though the outcome remains uncertain at this time, our US Business does not currently represent a significant share of revenue. If the provision stands, we do not expect a material adverse economic impact to OrganiGram Holdings. We are also monitoring recent media reports regarding cannabis rescheduling in the U.S. while no regulatory decisions have been finalized, OrganiGram Holdingss is encouraged by the direction of these discussions and recognizes that meaningful federal reform could positively impact the operating investment environment for the global cannabis sector by reducing regulatory friction and supporting more sustainable industry growth long term. As the global cannabis trend continues, we see strong growth potential for our flower our brands and innovation products in international markets outside of the US in the near term, investors can expect to see us launch branded vapes and gummies in Australia and expanded flower exports. Our pending EU GMP application in October 2025, we submitted additional clarifying information as requested by the regulator and we await a determination on our application. Regarding our Jupiter Fund, which currently has $59 million available for deployment, we have identified several compelling opportunities. The fund allows us to deploy capital strategically to leverage opportunities and markets outside of Canada. Overall, we believe organigram is exceptionally well positioned to benefit from the continued global shift towards regulated cannabis markets. From an advocacy perspective, we've seen meaningful progress in our industry advocacy this year. Provinces like New Brunswick and Ontario have demonstrated a clear understanding of both the opportunities and the challenges in this sector. They have shown support for advancing discussions with the federal government on critical issues such as excise reform and strategies to strengthen the legal cannabis market. There's still a lot of work ahead. This growing alignment is an encouraging sign of constructive dialogue and a shared commitment to finding practical, forward looking solutions. In closing, we've made some strong Progress in fiscal 25 across cultivation, market execution and international expansion, which translated into record financial performance for OrganiGram Holdings. As we move into fiscal 26, we will continue to build off that success and focus our efforts on disciplined execution and fundamentals with a clear emphasis on sustainable growth, margin expansion and continued leadership in the markets where we operate. With that, I'll turn the call over to Greg to walk us through the financials in more detail. Greg.

Thank you Tim. We are pleased to once again report record results and we're very excited to build upon our fiscal 2025 in the coming year. In Q4, net revenue increased 79% to 80.1 million from 44.7 million in the same prior year period. Similarly, full year fiscal 2025 net revenue increased 62% to 259.2 million from 159.8 million in the prior year. These results were driven by contributions from our MOTIF and collective project acquisitions which were completed on December 6, 2024 and and April 1, 2025 respectively. We maintained our number one position in Canada's growing market through broad portfolio coverage and coast to coast distribution and the scale up of our international business which in Q4 grew 31% sequentially over Q3 and 137% year over year to reach 9.7 million for the full year. Fiscal 2025 international sales hit a record 26.3 million 171% increase versus the prior year. As Tim mentioned, we are anticipating continued growth in both our domestic and international businesses in fiscal 2026 supported by increasing distribution of vapes and pre rolls, exciting renovations in our product portfolios and increasing international demand. Given the maturing dynamics in Canada and single digit growth rate, we anticipate international sales to grow at a significantly higher rate in the coming year. Adjusted gross profit for the quarter increased 85% to 30.6 million versus 16.5 million in Q4 last year due to our significantly higher revenue base. International sales growth incremental efficiency gains partially offset by higher biomass costs. On a full year basis, adjusted gross margin was 35% in line with our fiscal 2025 guidance and 100 basis point increase from last year. This translated into record adjusted gross profit of 91 million versus 53.9 million last year. Adjusted gross margin in Q4 rose by 400 basis points over Q3 to 38%. While we are pleased with this progress, we see further margin improvement in fiscal 2026 driven by several key factors. First, we are realizing synergies from the MOTIF acquisition. In fiscal 2025 we achieved approximately $7.1 million in cost savings which on an annualized basis reflects more than 15 million in savings in line with our previously disclosed target. We did see some offsets during the year, including higher biomass costs, a temporary disruption to our OTIC performance related to the MOTIF ERP integration, which we discussed last quarter, and higher benefits costs for legacy MOTIF employees. In addition, a portion of these savings relates to lower consumables and production costs, which will only flow through earnings as the associated inventory is sold. With the majority of the integration now complete, we expect operational leverage from the motif acquisition to continue building through fiscal 2026. Second, we continue to optimize our cultivation methods to increase output per square foot in Moncton and benefit from our recent LED lighting upgrades and reduced labor costs associated with plant care. Third, we anticipate incremental margin lift from the continued international growth. These drivers support our expectation that adjusted gross margin will continue to improve in fiscal 2026 with full year margins higher than fiscal 2025. In line with previous guidance in Q4, G&A costs were 17.6 million versus 9.5 million in the prior year period. The year over year increase in GNA of approximately 8.1 million was primarily associated with the consolidation of Motif's, Motif's costs, incremental ERP and professional fees partially offset by some cost savings initiatives. As a proportion of net revenue, G and A costs represented roughly 22% of net revenue in Q4, which was flat sequentially and up approximately 100 basis points from the same prior year period. In fiscal 2025, G&A cost of 59.5 million represented 23% of net revenue, down from 28% of net revenue last year. Selling costs for the quarter, including marketing, were 8.9 million versus 8.0. 0. As a percentage of net revenue, selling and marketing expenses remained flat sequentially and year over year at approximately 12%. In fiscal 2025, these expenses of 31.1 million represented 12% of net revenue, approximately 400 basis points lower than in fiscal 2024. Overall, SG&A has declined year over year as a proportion of net revenue. As we continue to scale the business and realize the benefits of greater operational leverage, total operating expenses for the quarter increased 8.5% to 30.6 million from 28.3 million in the prior quarter, representing approximately 38% of net revenue, down approximately 200 basis points sequentially compared to the prior year period. Total operating expenses as a percentage of net revenue were effectively flat. Adjusted EBITDA set a company record in fiscal 2025. In Q4, we reported adjusted EBITDA of 9.8 million, an increase of 72% sequentially and 69% year over year. In fiscal 2025, adjusted EBITDA was 21.9 million, up 160% from 8.4 million in 2024. We're very pleased with this performance which we expect to build upon in the future. An interesting fact is that Q4 adjusted EBITDA exceeded the entire year of fiscal 2024. The increase in adjusted EBITDA both in the quarter and for fiscal 2025 is attributable to our larger scale increased international sales and proportionally lower operating expenses. Our net loss for the quarter was 38 million compared to a net loss of 5.4 million in the same prior year period. The increase in net loss of roughly 32.5 million year over year was primarily due to a higher non cash mark to market adjustments in the fair value of derivative liabilities, preferred shares and other financial assets. This change was partially offset by higher sales and improving gross margins in Q4 fiscal 2025, reflecting operational efficiencies, product mix optimization and ongoing cost management initiatives. For the fiscal 2025 net loss decreased 46% to 24.8 million from 45.4 million in the prior year period. The decrease in net loss from fiscal 2024 is primarily due to higher sales, higher adjusted gross margins and a deferred tax recovery that was reported in fiscal 2020 2025. From a cash flow perspective, in Q4 cash, cash provided by operating activities before working capital changes was 3.1 million compared to 1.2 million in the prior year period. In fiscal 2025, cash used by operating activities before working capital changes was 5.5 million compared to cash used of 11.1 million in the prior year period. This improvement in both periods is attributable to our higher adjusted ebitda, we previously estimated free cash flow to be positive. For Q4 fiscal 2025, the company had free cash flow just shy of positive at negative 0.7 million in Q4 fiscal 2025 which was lower than projected primarily due to higher investment in working capital than previously planned. Finally, as of year end we had total cash and short term investments of 84.4 million of which 28.2 million was unrestricted. While we believe our near to medium term capital position is healthy, we regularly evaluate our capital structure to ensure we're maintaining appropriate long term financial flexibility. We feel very confident in our outlook for fiscal 2026. This is supported by our record financial performance in fiscal 2025, our margin improvements and the continued expansion of our international business. We expect to deliver very strong year over year growth in Q1. While noting that consistent with prior years, we anticipate a seasonal sequential reduction versus our typically strong Q4 results. For fiscal 2026, we are projecting continued strong net revenue growth expected to exceed 300 million, along with further improvements in adjusted gross margin and adjusted EBITDA compared to fiscal 2025. We also expect to generate free cash flow in fiscal 2026, with capital expenditures expected to be less than 10 million. To conclude our prepared comments, I'd like to turn the call over to our Executive Chair, Peter Amaro. Peter, over to you. Thank you, Greg.

And thank you everyone for joining us today. Look, I just want to close by acknowledging a couple of things. First of all, I want to talk about the strong momentum that Organigram has built this year. We delivered record revenue. We delivered our highest gross margin and adjusted EBITDA since 2019, and we continue to be the number one position in the Canadian marketplace while accelerating our international growth and shipments. I'd also like to talk just quickly about the Motif Labs acquisition. As many of you know, M and A transactions are difficult. You know data would suggest that up to 75% of these transactions never achieve their financial targets. Well, Motif has been a clear outlier. The integration strengthened our capabilities, contributed meaningfully to our financial performance, and importantly, we did so without losing any market share. So as we look ahead, we also expect continued growth. As Greg has said, supported by a stronger platform, expanding international opportunities and the operational discipline that has driven our recent success will help drive our margin. And one other point, we'll also be fairly focused on our SG and A expense as well. Before closing, I want to do two things. I want to extend our sincere thanks to Bina Goldenberg. Bina and her leadership and steady hand through a dynamic period for both Organigram and the industry. Her contributions have position us very well for the next phase. Finally, we're also very pleased to welcome our new CEO, James Yamanaka, who will be coming in early January. James brings a wealth of experience. He has deep global strategy experience with BAT and a proven record of scaling international businesses. And we believe his leadership is timely and will be invaluable as we advance our domestic priorities and clearly look to work to expand our global footprint. With that, I'll now open the call for questions.

At this time, if you would like to ask a question, press star, then the number one on your telephone keypad. To withdraw your question, simply press star one. Again, we kindly ask that you limit yourself to one question and one follow up. You may re queue for additional questions. We will pause for just a moment to compile the Q and A roster. Your first question comes from the line of Erin Gray with Alliance Global Partners. Please go ahead.

Hi, good morning. Thank you for the questions and congrats on the strong quarter to finish the fiscal year. You know, first question for me. Want to talk about international, you know, a strong quarter here. You know, want to talk about, you, Know, how good of a basis might. Be to build off of. I know you talked about significant growth in fiscal year 2026, you know, how much and then also more conversion of how much of that enhanced cultivation. I believe you said 14,000kg last quarter. Have you started to realize that or is that still the completion. Because I know that was, you know, pegged for international. So any commentary on international growth expectations expect going forward and then maybe some of the supply demand dynamics you're seeing within those markets. Thanks.

Yeah, maybe. Thanks for the question, Aaron. Maybe I'll kick that off. So yeah, we're starting to realize this increased capacity already. We recently increased. We're looking at about a 14,000 kilogram annual capacity increase with the changes that we just made. That includes our LED light switch over to high-density LED lights, turnover timelines on our rooms and some nutrient programs that we've been rolling out along with our seed based growth. So we have 14,000. We expect to grow further capacity in fiscal 26. I think from a supply and demand perspective, we're well positioned for fiscal 26. You know, obviously Germany is growing exponentially right now. We feel very comfortable in our supply growth that we have right now to be able to shift that into Germany and other international markets. And we are seeing more capacity come online even from a competitive landscape. So we are seeing more volume that's going into these markets and more capacity that's coming online from a competitive perspective. But overall we are taking a disciplined approach to capacity expansion and we do believe that our planned increase in fiscal 26 is appropriate in the near term. We are evaluating other options to expand flower capacity further though. So if we need it, we will move as the market continues to grow.

Thanks for that Tim, That's helpful.

Tim, is it also fair to add that, you know, we've also got, you know, some derivative products that will be shipped internationally in fiscal 26? Yes, that's a whole other, you know, we are looking at other categories to expand out as well. Australia, for example, like Germany's really flower right now in oil. So but with countries like Australia and other international markets, they're opening different categories up. Vapes for example, and gummies. So we are, you know, we've lined up with very strong strategic partners in Australia and we will be launching branded vapes into the Australian market along with gummies into the Australian market in the coming months. So we're excited about that as well. So it's not just flower. As more categories open up, that also gives us other opportunities to grow the business internationally.

Appreciate that color. That's helpful. Second question for me just on the gross margin, I know you talked about the expectation for it to be better than 20, 25, 35%. So I want to get some more color. Given the strong 4Q of 38%. Were there some one offs in 4Q that could moderate during 2026? Or is it fair to say that there might be some conservatives maybe within the gross margin improvements going forward? And just want to clarify that does not include any further enhancement once you receive the EU GMP. Thanks.

Thanks, Aaron. Yeah, the 38% that we had in Q4 is obviously something we're very happy with. Is 100 basis point improve over the same period last year going into, into fiscal 2026. We're expecting that to continue improving. I would say Q1 is traditionally not our strongest quarter from a seasonality perspective. So we expect less scale to benefit from in Q1. But over the course of the year we expect a positive trend in gross margin, really driven by the operational improvements that Tim talked about. You know, we've been, we've been able to pretty significantly increase our capacity without making major capital investments and physical changes to the facility. And all of that is really bringing down our cost per gram, which is driving those margin improvements. Also, you know, we mentioned the Motif acquisition. We're starting to realize the synergies from that. That's a further improvement to adjusted gross margin. And then finally when we do eventually get our eugmp, which we're waiting on patiently, that's going to have another positive as well because that'll drive further, further margin on our international business. So overall, I think last year or last quarter I guided towards margins approaching the 40% range and that still holds. We're expecting margins to continue to grow over the course of the next year. Okay, great. Just one quick comment.

I would say the 38% we were happy with, but we're not satisfied. We think there's more. Yeah. And another leverage that we have is from the commercial side of the business. Obviously we're looking at SKU rationalization and emphasizing more on our high margin categories, which is a big focus for us. But also taking price when earned you know, we took two different price points price increases in fiscal 25 and we just took another one early fiscal 26. You know, if you look at the overall category from a pricing perspective, you know, price compression is only really impacting aios all in one vapes. Over the past year, we've seen an increase in the ASP pricing on flower over the past year. As you know, there's a, there's a, you know, this balance between supply and demand in the Canadian market and LPs have taken price and we're one of them. So I think that definitely helps drive margins as well.

Okay, that's great to hear. Appreciate the color. I'll go and jump back in the queue.

Your next question comes from the line of Brenna Cunnington with ATB Capital Markets. Please go ahead.

Hey, thanks for taking our questions and congrats on the quarter. Just continuing on the line of thought with the motif synergies material materializing and approaching 40% margins next year. Roughly how much of this margin improvements do you think would be from further synergies from motif versus cultivation improvements and other improvements in just general fundamentals?

Yeah, I think when you look at the scale of our Moncton facility and the cultivation, that's going to drive the majority of the margin improvement that we're seeing. I mean, look, we've already recognized a fairly significant amount of motif synergies in the back half of last year. We do expect it to continue, but I'd say more of the synergies are going to come from operational improvements in Moncton independent from the acquisition. Just the cost per gram itself is coming down and that just drives a significant amount of margin improvement.

Gotcha. And then yeah, we also noticed that the yield for plants improved in the last quarter as well. So that's good to see. And then our second question is just regarding CAPEX plans. You're sitting on decent amount of cash, specifically with the restricted cash that's preserved for investment. Could you just run us through again some of the plans for investments in the next year?

Yeah, so last year we spent invested a pretty significant amount into the business. Around 17 million for fiscal 2026. We expect that to be significantly lower, less than 10. We're obviously always evaluating new opportunities for investment in the facilities, but right. Of what we have today, along with just sort of sustaining capital expenditures to keep advancing the business. You know, last year we did look at doing an expansion in Moncton. We ultimately put that on hold because we were able to achieve those objectives through process improvement and through the LED light project. So I'd say Capex plans are modest for the next year, but it's something we'll continue to evaluate as opportunities come up.

Okay, perfect. Thank you very much. Those are our questions. I'll hand it back.

That concludes our question and answer session. I will now turn the call back over to Tim Imberg for closing remarks.

Thank you. Well, listen, I just want to thank everybody for your time today. Obviously, we're extremely excited of the quarter that we just had and the year we just had. We're pumped for fiscal 26 as we feel we're going to continue to take that momentum and drive growth both from a domestic side and an international side. I'd like to take a moment to wish you all a very happy holiday season as we're getting close to the holidays now and we look forward to re looping in February for our Q1 results. So thank you.

Ladies and gentlemen. This concludes today's call. Thank you all for joining. You may now disconnect.