Rubicon Organics (ROMJ) Q1 2026 earnings summary

Executive summary

• Q1 2026 net revenue reached CAD 13.7 million, up 11% year-over-year, driven by strong flower and pre-roll sales from the 1964 and Simply Bare brands, despite B.C. distributor strike impacts.

• Cascadia facility is fully operational, with first harvests exceeding quality and yield targets, GACP certification achieved, and first commercial sales expected by mid-2026.

• International expansion began with the 1964 brand launch in the U.K. medical cannabis market, marking the first brand-forward entry outside Canada.

• Achieved #1 national market share in premium flower (10.3%) and strong positions in vapes and topicals.

Financial highlights

• Net revenue for Q1 2026 was CAD 13.7 million, up CAD 1.3 million from Q1 2025, with 1964 Supply Co. accounting for two-thirds of revenue and up 13% year-over-year.

• Gross margin before fair value adjustments was 20% in Q1 2026 (CAD 3.5 million), down from 31% in Q1 2025, mainly due to Cascadia ramp-up costs; excluding these, margin would have been approximately 29%.

• Adjusted EBITDA was a loss of CAD 580,000 (or $0.6 million), compared to a positive CAD 700,000 in Q1 2025, reflecting increased fixed costs, seasonality, and strike effects.

• Operating expenses increased by CAD 1.6 million year-over-year due to investments in talent, brand development, and regulatory costs.

• Cash and cash equivalents stood at CAD 3.2 million as of March 31, 2026, with cash flow from operations at CAD 2.1 million.

Outlook and guidance

• Second half of 2026 expected to show improvements in revenue, gross margin, Adjusted EBITDA, and cash flow as Cascadia ramps up branded sales.

• Full-year 2026 CapEx expected at CAD 5.2 million, focused on process insourcing, automation, and efficiency projects.

• Combined annual production capacity of 15,500 kg positions the company to meet growing domestic and international demand.

• International sales projected to grow, with 10% of top-line revenue targeted from international channels in 2026.

• Ongoing focus on genetics innovation and new cultivar launches to maintain premium market leadership.