Organigram Posts Record Revenue in First Quarter With Sanity Group

Organigram Global Inc. (OGI ) reported the highest quarterly revenue in its history on August 11, 2026, posting net revenue of $105.8 million for its fiscal third quarter ended June 30, 2026 (a 49% increase over the $70.8 million it recorded in the same period a year earlier) in results that for the first time consolidate Berlin-based medical cannabis company Sanity Group.

Gross revenue reached $145.1 million, up 32% year over year, and adjusted EBITDA came in at $13.4 million against $5.7 million in the prior-year quarter, according to the company’s earnings release, which was furnished to securities regulators in a report filed August 11, 2026. Net income swung to $105.5 million from a net loss of $6.3 million a year earlier, a result the company attributes primarily to non-cash fair value gains on preferred shares alongside the higher revenue and margins.

Sanity Group, whose acquisition closed April 15, 2026, contributed approximately €25 million (C$40 million) in net revenue in its first partial quarter inside Organigram’s consolidated results, meaning the European business accounted for nearly 40% of the quarter’s net revenue despite being consolidated for only part of it. The deal valued Sanity at up to €250 million: an initial €130 million plus as much as €120 million more tied to performance metrics over a twelve-month period ending April 1, 2027, according to the closing announcement.

“This quarter marks an important milestone for Organigram as we report the first quarter of financial contributions from Sanity Group, helping drive record quarterly revenue and adjusted EBITDA,” said Chief Executive Officer James Yamanaka in the release.

The quarter also confirmed a leadership transition in the finance office. Yamanaka’s statement recognized Paolo De Luca, who is departing after nine years as Chief Financial Officer and later Chief Strategy Officer; Greg Guyatt signed the release’s financial commentary as Chief Financial Officer, describing a company “on track for net revenue to exceed $350 million” for the fiscal year ending September 30, 2026.

How the Sanity Group Acquisition Reshaped Organigram’s Quarter

The adjusted EBITDA reconciliation shows how much of the quarter’s accounting was acquisition-related. Organigram booked $5.2 million in acquisition and transaction costs in the quarter, up from $654,000 a year earlier, and its adjusted EBITDA adds back a $104.3 million net non-operating income line that includes changes in the fair value of preferred shares and contingent consideration: the earnout structure attached to the Sanity deal.

Sanity spent the quarter executing on its European expansion rather than holding still inside its new parent. The release lists preparations for an additional Swiss recreational pilot project, progress on entering Poland, branded product launches in the United Kingdom through new partnerships, a new Swiss medical partnership, and what the company describes as its first meaningful medical cannabis sales in Switzerland. Sanity, founded in Berlin in 2018 by Finn Age Hänsel, operates medical cannabis brands Vayamed, avaay Medical and ZOIKS, alongside finished-pharmaceuticals subsidiary Endosane Pharmaceuticals and the Grashaus Projects Swiss recreational pilot.

Under the deal’s governance terms, Max Narr — formerly Sanity’s Managing Director and Chief Strategy & Investment Officer — joined Organigram’s board of directors for the duration of the earnout period.

Organigram’s Quarter by the Numbers

• Net revenue: $105.8 million, up 49% from $70.8 million in Q3 Fiscal 2025
• Gross revenue: $145.1 million, up 32%; excise taxes took $39.3 million of that
• Adjusted EBITDA: $13.4 million, up 136% from $5.7 million
• Adjusted gross margin: 37% of net revenue, up from 34% a year earlier
• Net income: $105.5 million, against a $6.3 million net loss in the prior-year quarter
• Sanity Group contribution: approximately €25 million (C$40 million) in net revenue from the April 15, 2026 close through June 30, 2026
• Cash and short-term investments: $11.7 million at June 30, 2026, down from $84.4 million at September 30, 2025; total liquidity including credit facilities was $49.1 million
• Free cash flow: an outflow of $3.9 million, against an inflow of $5.0 million a year earlier, which the company ties to working capital investment at its larger scale

What the Fiscal 2026 Trajectory Looks Like Now

The record quarter follows a weak one. In its second fiscal quarter, reported May 12, 2026, Organigram posted net revenue of $59.8 million, down 9% year over year, and adjusted EBITDA of $0.9 million. The swing between the two quarters is largely the Sanity consolidation, which began five weeks into the third quarter.

In Canada, the company characterizes itself as the country’s largest cannabis company by market share, citing a combination of third-party retail data sources and internal modelling as of June 2026: first in vapes, milled flower and concentrates, second in flower and pre-rolls, third in edibles and fourth in beverages. It operates cultivation and manufacturing sites in Moncton, New Brunswick; Lac-Supérieur, Québec; Winnipeg, Manitoba; and Aylmer and London, Ontario, under Health Canada’s Cannabis Act licensing framework, with brands including Edison, SHRED, BOXHOT, Big Bag O’ Buds and Collective Project.

For the final quarter of its fiscal year, management expects positive free cash flow while projecting that full-year free cash flow will be modestly negative, given the working capital absorbed by the enlarged business. The company has also flagged EU-GMP certification and commercialization of its FAST nanoemulsion technology in ingestible formats among its forward priorities in the release’s outlook section. The earnout window that determines whether Sanity’s former owners receive the full €120 million performance payment closes April 1, 2027.