Sunday, September 14, 2025

Organigram Reports Q2 Net Revenues Of $14.6 Million, Net Loss Of $66.4 Million

Revenues continue to decline for Organigram Holdings (TSX: OGI) (NASDAQ: OGI). The company this morning posted net revenues for the second quarter of 2021 of $14.6 million, a decline from the prior quarter and a miss on consensus estimates from analysts, while posting a net loss for the quarter of $66.4 million.

Revenues for the quarter fell substantially as a result of a number of employees testing positive for COVID-19, requiring the firms facility to close for certain periods during the quarter as per the company. The closure was a result of isolation requirements as well as deep cleaning requirements following the positive tests.

Things failed to get any better from here, with the company reporting just $14.6 million in net revenues, continuing the decline on a sequential basis, while also missing analyst consensus estimates of $20.21 million in revenues rather significantly. The quarter was also a miss on an adjusted EBITDA basis, with analysts expecting a figure of -$5.39 million, while the company instead posted a loss of -$8.64 million.

Cost of sales for the quarter meanwhile amounted to $31.1 million, marking the fourth straight quarter of negative gross margins for the firm at -$16.5 million, while leaving investors wondering what the go-forward path is for the company at this point in time. Operating expenses meanwhile totaled out to $12.1 million, largely consisting of general and administrative expenses of $8.0 million, and sales and marketing expenses of $3.1 million.

The loss was further enhanced by a further $37.7 million loss on the change in fair values of warrant liabilities and $0.8 million in financing costs. The company however did receive a bump from government subsidies of $2.7 million, before ultimately reporting a net loss of $66.4 million.

Looking to the balance sheet, the company saw its cash position fall to $61.1 million from $103.9 million during the quarter, while short term investments declined from $30.0 million to $10.0 million. Receivables also declined, falling from $12.8 million to $10.6 million, while inventories fell from $49.2 million to $37.3 million. Total current assets overall fell from $208.4 million to $132.3 million.

Accounts payable and accrued liabilities also fell however, dropping from $17.1 million to $13.8 million, while the current portion of long term debt fell from $61.1 million to $6.0 million. Overall, total current liabilities fell from $78.3 million to $19.9 million.

Notably, subsequent to the end of the quarter the firm saw a $221 million strategic investment from BAT, more commonly known as British American Tobacco. The company also repaid $58.5 million in outstanding debt under term loan facilities, which we suspect was a result of BMO calling its loan.

Organigram Holdings last traded at $3.50 on the TSX.


Information for this briefing was found via Sedar and Organigram Holdings. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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