Rubicon Organics (ROMJ) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 net revenue of CAD 18.5 million, up 23% year-over-year and 35% sequentially, with six-month revenue at CAD 32.1 million, driven by premium-focused strategy and operational improvements at Pacifica.

• Growth realized across all three key brands in Canada and initial international sales, with Cascadia facility contributing revenue for the first time.

• Maintained number one national market share in premium flower at 9.7%, with gains in premium pre-rolls and continued brand recognition.

• Successfully launched the 1964 brand in the U.K. medical cannabis market, marking the first international commercial launch.

• Cascadia facility operationalized on budget and on schedule, with initial harvests meeting premium quality standards and revenues beginning to be realized.

Financial highlights

• Q2 2026 net revenue reached CAD 18.5 million, a 23% increase year-over-year and 35% sequentially.

• Gross margin before fair value adjustments was 30%; excluding pre-revenue Cascadia costs, gross margin was 36%, the highest since Q4 2024.

• Adjusted EBITDA was positive at CAD 1.1 million, down from CAD 1.4 million in Q2 2025 due to costs of operating a larger platform.

• SG&A expenses were CAD 6.9 million, up CAD 2 million year-over-year, reflecting investments in talent, brand, and regulatory costs.

• Ended the quarter with CAD 3 million in cash and CAD 20.9 million in working capital.

Outlook and guidance

• Net revenue and Adjusted EBITDA expected to ramp up through Q3 and Q4 2026 as Cascadia scales and operational efficiencies improve.

• International revenue projected to average 10% of total revenue for fiscal 2026, with further expansion anticipated in 2027.

• Ongoing initiatives in yield improvement, automation, and in-house extraction expected to drive margin and EBITDA growth.

• 2026 is viewed as an inflection point, with ongoing optimization and investments supporting future revenue and margin growth.

• Current annual production capacity is 15,500 kg, with a pathway to 20,000 kg over 18–24 months.