August 11, 2026 | Sarah Clark –
Organigram Global reported record net revenue of $105.8 million for the three months ended June 30, 2026 (Q3 FY 2026), gross margin of $41.4 million, and net income of $105.5 million.
Net revenue was up 49% year-over-year, gross margin was up 58%, and net income increased from a $6.3 million loss in Q3 FY2025.
The increase in net revenue was primarily attributed to medical sales resulting from the contribution of Sanity Group, which Organigram acquired in April 2026, as well as a $1.9 million increase in recreational cannabis sales in Canada.
Headquartered in Germany, Sanity Group distributes medical cannabis products through an established network of pharmacies and healthcare partners. It continues to expand its presence across Poland, Czechia, the UK, and Switzerland. Organigram’s international transactions are limited to a few countries, such as the United States, the United Kingdom, Australia, Germany, Switzerland, Poland, and Czechia.
Of Organigram’s net revenue, $61.8 million (58%) was from recreational cannabis sales, $39 million (37%) from medical sales (mostly international), and $4.9 million (5%) from wholesale sales and other revenues. Net revenue for Q3 Fiscal 2026 increased by 49%, or $35 million, from $70.8 million in Q3 Fiscal 2025.
While the Canadian cannabis market remains the foundation of Organigram’s business, approximately 35% of its consolidated revenues were generated internationally this quarter, compared to roughly 10% before the acquisition.
The company incurred $39.3 million in excise taxes on gross revenue of $145.1 million, a rate of about 27% of Organigram’s total recreational and medical sales. However, since “most” of Organigram’s medical sales were in the international market in the most recent quarter, which does not have Canada’s cannabis excise applied, this percentage is somewhat higher.
“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 James Yamanaka, Chief Executive Officer. “Sanity’s performance has been in line with our expectations, while our Canadian business continues to demonstrate resilience through market leadership and improving performance in key categories driven by operational enhancements and targeted changes to our product portfolio. As we enter the final quarter of Fiscal 2026, we are a fundamentally different company, and I look forward to continuing to execute our global strategy by leveraging our integrated Canadian operations and European distribution platform to drive long-term growth.
“I would also like to recognize Paolo De Luca, who will be departing Organigram after nine years of exceptional leadership and service. During his tenure as both Chief Financial Officer and Chief Strategy Officer, Paolo played an instrumental role in many of the Company’s most transformative transactions, helping lay the foundation for Organigram’s evolution into a global cannabis company. On behalf of everyone at Organigram, I thank Paolo for his many contributions and wish him every success in the future.”
In a conference call about the most recent quarterly results, Yamanaka also said the company is bullish on rescheduling and federal legalization efforts in the US, but the company’s primary international focus will remain Europe and Australia.
As of quarter-end, Organigram held an 11.1% share of the Canadian recreational cannabis market, based on data from Hifyre, Weedcrawler, provincial boards, retailers, and the company’s own internal sales tracking.
Organigram first applied for EU GMP certification for its Moncton, New Brunswick facility in November 2023 (during the first quarter of fiscal 2024). The company had a preliminary audit in February 2024, which was completed in November 2024.
In April 2026, the company provided additional documentation requested by the regulator to support the closure of major findings identified during the certification audit. The company says the timing of any certification remains unknown, but it expects further updates in the coming months.
In the same quarterly conference call, Yamanaka said the company continues to take other efforts to address quality issues relating to products sold in the European market, noting an especially “tight” supply for EU GMP flower going into Germany.
“With that said, we are addressing it with the improvement in flower that passes microbial counts out of Moncton, where we have new suppliers as well, and we have opened up different remediation pathways into Europe,” said Yamanaka. “Some of the German authorities have tightened up EU GMP to an extent. But with the new activities we have been doing, we are confident we can supply most of the demand that Sanity Group requires.”