Organigram Global Inc. (OGI) recently announced its financial outcomes for the third fiscal quarter of 2026, marking a pivotal period for the company with the integration of Sanity Group. This acquisition has significantly recalibrated Organigram's revenue composition, notably elevating its international market presence. The company proudly reported unprecedented net revenue and adjusted EBITDA figures, underscoring the success of its strategic diversification and operational enhancements.
During the third quarter of fiscal year 2026, Organigram Global Inc. reported net revenue reaching $105.8 million, a substantial 49% increase from $70.8 million in the corresponding period of the previous year. This remarkable growth was predominantly fueled by the inclusion of Sanity Group's financials, which contributed $40 million (equivalent to EUR 24.5 million) in revenue since its acquisition on April 15, 2026. The adjusted EBITDA also saw a significant surge to $13.4 million, marking a 136% rise from $5.7 million year-over-year. This improvement reflects both enhanced operational efficiency and the valuable contributions from international ventures.
The company's adjusted gross margin improved to 37%, representing a 300 basis point increase year-over-year and a 600 basis point sequential improvement. This was attributed to the robust performance of Sanity Group and heightened efficiencies within Canadian operations. Organigram's international revenue now constitutes 35% of its total revenue, a substantial leap from approximately 10% prior to the Sanity acquisition, signifying a fundamental shift in its business model towards global expansion. While Canadian recreational market share slightly decreased to 11.1%, strategic portfolio rationalization, including a 10% reduction in Stock Keeping Unit (SKU) counts, is underway to focus on higher-margin products and stronger brands. The flower category share increased to 12.5%, driven by advancements in cultivation genetics, with Moncton facility achieving a record average THC potency of 30.4% and harvesting over 30,000 kilograms.
Despite these positive developments, the company experienced an operating cash outflow of $4.3 million, compared to an inflow of $14.6 million in the prior year, primarily due to increased working capital investments in inventory. Similarly, free cash flow recorded an outflow of $3.9 million. However, management anticipates exceeding $350 million in revenue for fiscal year 2026, with expectations for continued growth in international markets and seasonal strength in Canada. Organigram also highlighted the strategic transformation initiated by CEO James Yamanaka, emphasizing the company's evolution into a more diversified global cannabis entity. The company expects minimal impact from German regulatory changes on medical cannabis reimbursements, as only about 1% of Sanity Group's historical sales were government-reimbursed. Efforts are also underway to secure EU-GMP certification for the Moncton facility, which is expected to further enhance international market access and profitability.
Organigram is strategically navigating both its domestic and international markets, reinforcing its commitment to operational excellence and market leadership. The company's proactive approach to optimizing its product portfolio in Canada and capitalizing on growth opportunities in Europe and Australia positions it for sustained success. The Q3 results affirm Organigram's trajectory towards becoming a leading global cannabis business, with a clear focus on achieving positive free cash flow in the near term.
