OrganiGram (OGI) Posts Q4 Loss but Exceeds Revenue Projections
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 16 2025
0mins
Should l Buy OGI?
Source: NASDAQ.COM
Quarterly Performance: OrganiGram reported a quarterly loss of $0.20 per share, significantly worse than the expected loss of $0.01, marking a 1,900% earnings surprise. Revenue for the quarter was $56.91 million, exceeding estimates by 7.1% and up from $32.77 million a year ago.
Stock Outlook: The company's stock has underperformed compared to the S&P 500 this year, with a current Zacks Rank of #3 (Hold), indicating expected performance in line with the market. Future stock movements will depend on earnings estimate revisions and management's commentary.
Industry Context: OrganiGram operates in the Medical - Products industry, which is currently ranked in the bottom 30% of Zacks industries, suggesting potential challenges ahead. The performance of the stock may be influenced by the overall industry outlook.
Competitor Insights: Tilray Brands, another company in the same industry, is expected to report a quarterly loss of $0.14 per share, with a slight revenue decline anticipated. This highlights the broader challenges facing cannabis producers in the current market environment.
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Analyst Views on OGI
Wall Street analysts forecast OGI stock price to rise
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 1.380
Low
2.36
Averages
2.64
High
2.91
Current: 1.380
Low
2.36
Averages
2.64
High
2.91
About OGI
Organigram Global Inc. is focused on producing cannabis for adult recreational consumers, as well as developing international business partnerships. It has also developed and acquired a portfolio of legal adult-use recreational cannabis brands, including Edison, Holy Mountain, Big Bag O' Buds, SHRED, SHRED'ems, Monjour, Tremblant Cannabis, Trailblazer, BOXHOT, Collective Project, Fetch and DEBUNK. It operates facilities in Moncton, New Brunswick and LacSuperieur, Quebec, with an edibles manufacturing facility in Winnipeg, Manitoba. It operates two additional cannabis processing facilities in Southwestern Ontario: one in Aylmer and the other in London. The facility in Aylmer houses CO2 and Hydrocarbon extraction capabilities, and is optimized for formulation refinement, post-processing of minor cannabinoids, and pre-roll production. The facility in London is optimized for labeling, packaging, and national fulfillment. Its subsidiaries include Organigram Inc. and Motif Labs Ltd.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Organigram Acquires Sanity Group to Expand European Market Presence
- Acquisition Deal Size: Organigram Global announced the acquisition of Berlin-based Sanity Group for an upfront consideration of €113.4 million, with a potential earnout of up to €113.8 million based on financial performance, significantly enhancing its network of supply-chain partners.
- Market Expansion Strategy: As the operator of Europe’s first legal cannabis specialty stores, Sanity Group is strategically expanding its footprint beyond Germany and Switzerland into Poland, the UK, and Czechia, aiming to capitalize on the rapidly growing European cannabis market.
- Financing Structure: The acquisition is expected to be financed through a combination of cash on hand, proceeds from a new credit facility, and an anticipated C$65.2 million equity investment by BAT, which will help mitigate financial risks and support future expansion.
- Market Outlook: The German medical cannabis market is projected to exceed €2 billion by 2025, serving approximately 800,000 patients, with forecasts indicating it will surpass €4.5 billion by 2028, reflecting a 50% year-over-year growth rate, providing strong market support for Organigram's acquisition.
See More
Organigram Secures CAD 65.2 Million Investment
- Investment Confirmation: Organigram Global Inc. confirmed a CAD 65.2 million private placement investment from a subsidiary of British American Tobacco, indicating strengthened financial health and increased market confidence.
- Financing Details: The financing includes the subscription of 14,027,074 shares at CAD 3.00 per share (totaling CAD 42.08 million) and the exercise of top-up rights for 9,897,356 shares at CAD 2.335854 per share (totaling CAD 23.12 million), culminating in gross proceeds of CAD 65.2 million.
- Market Reaction: Following the investment confirmation, Organigram's stock rose 8.70% in Thursday's premarket trading, reflecting investor optimism about the company's future, while the stock is currently trading 4.8% above its 20-day simple moving average.
- Earnings Outlook: Organigram is set to provide its next financial update on May 11, 2026, with EPS estimates dropping from 22 cents to a loss of 1 cent, while revenue estimates are expected to rise from CAD 45.70 million to CAD 54.67 million, indicating potential value opportunities.
See More
British American Tobacco Invests C$65.2M in Organigram Acquisition
- Investment Scale: British American Tobacco's C$65.2M private placement for Organigram's Sanity Group acquisition underscores its commitment to emerging markets, likely enhancing Organigram's competitive position.
- Share Subscription: Under the agreement, BAT will subscribe to approximately 14.02 million Organigram shares at C$3.00 each, generating about C$42.1M, which will further solidify its equity stake in Organigram.
- Use of Funds: The proceeds from this financing will be combined with existing cash and up to C$60M in credit facilities from ATB Financial to fund the cash portion of the Sanity acquisition and cover transaction costs, ensuring a smooth acquisition process.
- Market Reaction: Organigram's shares rose by 4.35% in premarket trading, reflecting positive market sentiment towards this investment and acquisition plan, which may enhance the company's long-term growth potential.
See More
Organigram Enters Subscription Agreement with BAT for Sanity Acquisition
- Significant Financing: Organigram's subscription agreement with BAT will provide the company with a total of C$65 million in funding, including the purchase of 14,027,074 shares at C$3.00 each, indicating strong market support for its acquisition of Sanity Group.
- Equity Structure Adjustment: BAT will receive 2,353,379 common shares and 21,571,051 preferred shares in this transaction, with the preferred shares convertible into common shares without exceeding a 30% ownership threshold, ensuring BAT's influence within the company.
- Regulatory Approval Requirements: The acquisition and private placement investment are subject to multiple regulatory approvals, including from the Toronto Stock Exchange and Organigram's shareholders, highlighting the complexity of the transaction and its implications for corporate governance.
- Strategic Investment Intent: Through this transaction, BAT further solidifies its investment in Organigram, reflecting its long-term optimism about the cannabis market and potentially increasing its control over the company by adding board members.
See More
Organigram Proposes Acquisition of Sanity Group
- Acquisition Overview: Organigram plans to acquire German cannabis company Sanity Group for €113.4 million (approximately $134 million), comprising €80 million in cash and €33.4 million in Organigram shares, significantly enhancing its position in the global cannabis market.
- Financing Strategy: The acquisition will be financed through a combination of cash on hand, proceeds from a new credit facility, and expected equity investment, with Organigram in talks for a CAD 65.2 million (around $47.8 million) investment from British American Tobacco to support the cash component of the deal.
- Strategic Importance: Paolo De Luca, Chief Strategy Officer, stated that by combining strengths with Sanity, Organigram will accelerate growth in key European markets and create substantial value for shareholders, thereby strengthening its competitive edge in the world's largest federally legal cannabis markets.
- Market Performance Analysis: Despite a 7.09% increase in premarket trading to $1.36, Organigram's stock remains below its 20-day and 100-day simple moving averages, indicating a bearish trend in the short term, with key support at $1.00 and resistance at $1.50.
See More
Organigram Acquires Sanity Group, Expanding Global Cannabis Leadership
- Acquisition Overview: Organigram is acquiring Sanity Group for an upfront consideration of €113.4 million, with a potential earnout of up to €113.8 million based on financial performance, which is expected to significantly enhance Organigram's leadership position in the global legal cannabis market.
- Revenue Growth: Sanity Group's annual net revenue is projected to increase from €9 million in 2023 to €60 million in 2025, including €19 million generated in Q4 2025, indicating strong market demand and growth potential.
- Market Expansion Opportunities: This acquisition allows Organigram to leverage Sanity's market presence in Germany and Switzerland while planning to enter the UK and Poland markets, thereby enhancing its market share and competitiveness in Europe.
- Strategic Synergies: The acquisition will integrate both companies' industry-leading intellectual property and products, expected to drive next-generation cannabis innovations and further solidify Organigram's position in the global cannabis industry.
See More
Organigram Acquires Sanity Group to Expand European Market Presence
- Acquisition Deal Size: Organigram Global announced the acquisition of Berlin-based Sanity Group for an upfront consideration of €113.4 million, with a potential earnout of up to €113.8 million based on financial performance, significantly enhancing its network of supply-chain partners.
- Market Expansion Strategy: As the operator of Europe’s first legal cannabis specialty stores, Sanity Group is strategically expanding its footprint beyond Germany and Switzerland into Poland, the UK, and Czechia, aiming to capitalize on the rapidly growing European cannabis market.
- Financing Structure: The acquisition is expected to be financed through a combination of cash on hand, proceeds from a new credit facility, and an anticipated C$65.2 million equity investment by BAT, which will help mitigate financial risks and support future expansion.
- Market Outlook: The German medical cannabis market is projected to exceed €2 billion by 2025, serving approximately 800,000 patients, with forecasts indicating it will surpass €4.5 billion by 2028, reflecting a 50% year-over-year growth rate, providing strong market support for Organigram's acquisition.
See More
Organigram Secures CAD 65.2 Million Investment
- Investment Confirmation: Organigram Global Inc. confirmed a CAD 65.2 million private placement investment from a subsidiary of British American Tobacco, indicating strengthened financial health and increased market confidence.
- Financing Details: The financing includes the subscription of 14,027,074 shares at CAD 3.00 per share (totaling CAD 42.08 million) and the exercise of top-up rights for 9,897,356 shares at CAD 2.335854 per share (totaling CAD 23.12 million), culminating in gross proceeds of CAD 65.2 million.
- Market Reaction: Following the investment confirmation, Organigram's stock rose 8.70% in Thursday's premarket trading, reflecting investor optimism about the company's future, while the stock is currently trading 4.8% above its 20-day simple moving average.
- Earnings Outlook: Organigram is set to provide its next financial update on May 11, 2026, with EPS estimates dropping from 22 cents to a loss of 1 cent, while revenue estimates are expected to rise from CAD 45.70 million to CAD 54.67 million, indicating potential value opportunities.
See More
British American Tobacco Invests C$65.2M in Organigram Acquisition
- Investment Scale: British American Tobacco's C$65.2M private placement for Organigram's Sanity Group acquisition underscores its commitment to emerging markets, likely enhancing Organigram's competitive position.
- Share Subscription: Under the agreement, BAT will subscribe to approximately 14.02 million Organigram shares at C$3.00 each, generating about C$42.1M, which will further solidify its equity stake in Organigram.
- Use of Funds: The proceeds from this financing will be combined with existing cash and up to C$60M in credit facilities from ATB Financial to fund the cash portion of the Sanity acquisition and cover transaction costs, ensuring a smooth acquisition process.
- Market Reaction: Organigram's shares rose by 4.35% in premarket trading, reflecting positive market sentiment towards this investment and acquisition plan, which may enhance the company's long-term growth potential.
See More
Organigram Enters Subscription Agreement with BAT for Sanity Acquisition
- Significant Financing: Organigram's subscription agreement with BAT will provide the company with a total of C$65 million in funding, including the purchase of 14,027,074 shares at C$3.00 each, indicating strong market support for its acquisition of Sanity Group.
- Equity Structure Adjustment: BAT will receive 2,353,379 common shares and 21,571,051 preferred shares in this transaction, with the preferred shares convertible into common shares without exceeding a 30% ownership threshold, ensuring BAT's influence within the company.
- Regulatory Approval Requirements: The acquisition and private placement investment are subject to multiple regulatory approvals, including from the Toronto Stock Exchange and Organigram's shareholders, highlighting the complexity of the transaction and its implications for corporate governance.
- Strategic Investment Intent: Through this transaction, BAT further solidifies its investment in Organigram, reflecting its long-term optimism about the cannabis market and potentially increasing its control over the company by adding board members.
See More
Organigram Proposes Acquisition of Sanity Group
- Acquisition Overview: Organigram plans to acquire German cannabis company Sanity Group for €113.4 million (approximately $134 million), comprising €80 million in cash and €33.4 million in Organigram shares, significantly enhancing its position in the global cannabis market.
- Financing Strategy: The acquisition will be financed through a combination of cash on hand, proceeds from a new credit facility, and expected equity investment, with Organigram in talks for a CAD 65.2 million (around $47.8 million) investment from British American Tobacco to support the cash component of the deal.
- Strategic Importance: Paolo De Luca, Chief Strategy Officer, stated that by combining strengths with Sanity, Organigram will accelerate growth in key European markets and create substantial value for shareholders, thereby strengthening its competitive edge in the world's largest federally legal cannabis markets.
- Market Performance Analysis: Despite a 7.09% increase in premarket trading to $1.36, Organigram's stock remains below its 20-day and 100-day simple moving averages, indicating a bearish trend in the short term, with key support at $1.00 and resistance at $1.50.
See More
Organigram Acquires Sanity Group, Expanding Global Cannabis Leadership
- Acquisition Overview: Organigram is acquiring Sanity Group for an upfront consideration of €113.4 million, with a potential earnout of up to €113.8 million based on financial performance, which is expected to significantly enhance Organigram's leadership position in the global legal cannabis market.
- Revenue Growth: Sanity Group's annual net revenue is projected to increase from €9 million in 2023 to €60 million in 2025, including €19 million generated in Q4 2025, indicating strong market demand and growth potential.
- Market Expansion Opportunities: This acquisition allows Organigram to leverage Sanity's market presence in Germany and Switzerland while planning to enter the UK and Poland markets, thereby enhancing its market share and competitiveness in Europe.
- Strategic Synergies: The acquisition will integrate both companies' industry-leading intellectual property and products, expected to drive next-generation cannabis innovations and further solidify Organigram's position in the global cannabis industry.
See More
