Organigram’s Q2 Revenue Drops 9% with $5.8M Hemp Impairment; Sanity Deal to Add €25M
GHRS•Organigram posted Q2 gross revenue of $93.3 million and net revenue of $59.8 million, down 9% year-over-year, and a net loss of $921,000 including a $5.8 million hemp impairment. Sanity acquisition is forecast to add €25 million quarterly revenue, while Moncton’s 32,000-kilogram harvest, up 56% YoY, awaits EU-GMP certification.
1. Quarterly Financial Performance
Organigram generated $93.3 million in gross revenue and $59.8 million in net revenue for the quarter ending March 31, 2026, both down 9% year-over-year. The company recorded a net loss of $921,000, compared with net income of $42.5 million in the prior year.
2. Impairment from Hemp Business
A $5.8 million impairment was booked due to regulatory changes in the 2018 Farm Bill definition of hemp, which are expected to impose significant restrictions on hemp-derived THC products later this year. Management attributed part of the quarter’s underperformance to weaker vape sales and production issues with infused pre-rolls.
3. Sanity Group Acquisition and European Expansion
In April, Organigram completed its acquisition of Germany-based Sanity Group and anticipates the business will generate approximately €25 million in average quarterly revenue. This move aims to strengthen the company’s footprint across key European medical cannabis markets.
4. Moncton Facility Improvements and EU-GMP Status
Operational enhancements at the Moncton cultivation facility led to a record harvest of over 32,000 kilograms, up 56% year-over-year, and the highest average THC potency levels to date. Organigram has submitted documentation for EU-GMP certification and expects an update in the coming months to boost export capabilities.
