Rubicon Organics Reports Q2 2025 Financial and Operating Results
'Our strong results reflect our relentless focus on quality across every aspect of our business. We're now seeing the established success of our 510-thread FSE resin vapes, which have been in market for a full year, alongside momentum from our premium genetics—underscoring the strength of our genetic strategy. Looking ahead, I'm excited about the potential of our newly launched all-in-one FSE resin vapes, upcoming genetic releases, and the commissioning of our Hope Facility to support continued, sustainable growth.' said Margaret Brodie, CEO.
'We delivered a record-breaking quarter, achieving our highest-ever net revenue of $15.0 million, record gross profit, and a record profit from operations of $1.0 million. We also generated Adjusted EBITDA of $1.4 million and positive operating cash flow of $0.8 million. Our strong and consistent performance in the first half of the year reflects the strength of our operating model and our commitment to financial discipline. While we expect some one-time costs in the back half of the year as we invest in bringing the Hope Facility online, this is a strategic move to support long-term, sustainable value creation,' said Glen Ibbott, CFO.
Q2 2025 and Subsequent Highlights:
Who We Are
Rubicon Organics is a Canadian leader in premium, certified organic cannabis. With a vertically integrated model and strong national distribution, the company is scaling a house of trusted, high-performing brands including Simply Bare™ Organics, 1964 Supply Co.™, Wildflower™, and Homestead Cannabis Supply™.
The Company's focus on premium quality, innovation, and operational execution has driven consistent growth, with Q2 2025 revenue up 30% year-over-year and positive Adjusted EBITDA for the fifth consecutive quarter and for nine of the last ten quarters.
The Company's production base is anchored by its fully licensed Delta Facility, expected to be complemented by the acquisition of the Hope Facility which will expand production capacity by over 40% and support future growth in both domestic and export markets. With proprietary genetics, award-winning products, and certifications enabling international distribution, Rubicon is positioned at the forefront of the premium cannabis segment.
As the Canadian market rationalizes and global demand for high-quality cannabis increases, Rubicon's disciplined execution, brand equity, and consumer loyalty set it apart. The company is well-capitalized following a recent $4.5 million financing and is on track for continued revenue and Adjusted EBITDA expansion.
Rubicon Organics represents a rare combination of category leadership, operational strength, and long-term growth potential.
Where We Are Going: 2025 Outlook
Securing Additional Premium Quality Supply
With growing demand for Canadian cannabis from the domestic and international markets, we see that controlling access to premium quality supply is critical to continue to grow our brands and gross revenue. Our Delta Facility is fully operational and has annual production capacity of 11,000 kg. We are continuously evaluating ways to improve both our yield and quality at the Delta Facility.
To support the increased demand for premium flower, the Company acquired the Hope Facility, adding 4,500 kg of annual production capacity—a more than 40% increase over the Delta Facility's existing capacity—and bringing total annual production capacity to 15,500 kg of premium cannabis. The acquisition closed on June 5, 2025, and the Company is currently progressing through the licensing process, with approval expected by year-end. The Company now anticipates incurring between $1 - $2 million in start-up operating costs in 2025. However, no revenue contribution is expected until the first half of 2026.
In 2025, we expect to acquire up to 2,000 kgs of incremental biomass and supplement our manufacturing capacity through strategic partnerships with co-manufacturers and contract growers. We plan to continue to collaborate with our trusted partners and explore additional partnerships as we strive to meet the growing demand for our high-quality premium products.
Building Trust with our Customers in Canada
We are committed to the growing Canadian cannabis market and to being a trusted partner for our customers—including provincial distributors, retailers, and consumers. As the Canadian customers face increasing competition from international demand, we have seen many mainstream and premium licensed producers shifting their sales abroad. We see this as a prime opportunity to further strengthen our brand presence in Canada.
With SKU rationalization underway across several provinces, suppliers are being evaluated on reliability and sales performance. This shift is raising the bar for market entry, making it increasingly challenging for new brands and products to secure shelf space. At the same time, Canadian consumers are becoming more brand-loyal, prioritizing trust and value in their purchasing decisions. We believe our award-winning brands and diverse product portfolio will continue to resonate with them.
Looking ahead, we anticipate a continued highly competitive retail landscape. However, Rubicon's strong brand recognition, consumer loyalty, high supplier ratings, and strategic positioning provide a solid foundation for long-term success in Canada.
Genetics
The Company's proprietary cannabis genetics represent a core strategic asset and a key differentiator in maintaining our leadership in innovation within the premium and super-premium segments of the Canadian market. Our extensive genetics library underpins our ability to deliver consistent, high-quality flower and supports ongoing product development across multiple formats.
In 2025, we are focused on expanding our genetic portfolio with several new launches under the Simply Bare™ Organic brand. Recent additions include BC Organic Pink Drip, BC Organic Sunset Runtz, and BC Organic Luv Affair, with BC Organic Black Zoap and BC Organic Tea Time #7 scheduled for release later in the year. These genetics are designed to enhance our product offering and strengthen our competitive position in the evolving premium cannabis market.
International
Our strong reputation in Canada has attracted an increasing number of inquiries from international medical cannabis buyers. The international cannabis market has experienced significant growth in recent years, with continued expansion anticipated. While the market is still in the early stages of adopting premium cannabis products, we aim to meet small amounts of the international demand with a test and learn strategy in 2025 while making sure to meet our Canadian customer needs as a priority. The Company holds the necessary certifications for international exports and made its inaugural international test shipment in the first quarter of 2025.
Financial Growth
For fiscal 2025, we are forecasting growth in both net revenue and Adjusted EBITDA, excluding acquisition-related and start up operational costs associated with the Hope Facility (the 'Hope Costs'), driven by our ongoing expansion and strategic initiatives. While we anticipate strong underlying performance in 2025, we expect the Hope Costs will impact our reported financial results. Despite the potential short-term impact of the Hope Costs on profitability, we are confident that our continued growth in net revenue and improved Adjusted EBITDA (excluding acquisition-related and start up operational costs associated with the Hope Facility) will position us for long-term success and value creation.
Q2 2025 Results of Operations:
Conference Call
The Company will be hosting a conference call to discuss Q2 2025 results on Monday, August 18, 2025.
Conference call details are as follows:
CONTACT INFORMATION
Margaret Brodie
CEO
Phone: +1 (437) 929-1964
Email: [email protected]
The TSX Venture Exchange or its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) does not accept responsibility for the adequacy or accuracy of this press release.
Non-GAAP Financial Measures
This press release contains certain financial performance measures that are not recognized or defined under IFRS ('Non-GAAP Measures') including, but not limited to, 'Adjusted EBITDA'. As a result, this data may not be comparable to data presented by other companies.
The Company believes that these Non-GAAP Measures are useful indicators of operating performance and are specifically used by management to assess the financial and operational performance of the Company as well as its liquidity. Accordingly, they should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. For more information, please refer to the 'Selected Financial Information' section in the MD&A for the year ended December 31, 2024, which is available on SEDAR+ at www.sedarplus.ca.
Adjusted EBITDA
Below is the Company's quantitative reconciliation of Adjusted EBITDA calculated as earnings (losses) from operations before interest, tax, depreciation and amortization, share-based compensation expense, and fair value changes. The following table presents the Company's reconciliation of Adjusted EBITDA to the most comparable IFRS financial measure for the three and six months ended June 30, 2025 and June 30, 2024.
Cautionary Statement Regarding Forward Looking Information
This press release contains 'forward-looking information' within the meaning of applicable securities laws. Forward-looking information is based on expectations, estimates, projections, and assumptions made by the Company in light of its experience and perception of historical trends, current conditions, and anticipated future developments, as well as other factors that the Company believes are appropriate and reasonable in the circumstances. Forward-looking information includes, but is not limited to, statements related to: the Company's strategic priorities and growth plans; anticipated benefits and timing of the Hope Facility acquisition and licensing; expectations regarding future revenue, Adjusted EBITDA, and profitability; expected timing and volume of new product launches; anticipated cost impacts related to facility expansion; demand for premium cannabis in domestic and international markets; and the Company's expectations regarding customer loyalty, brand strength, and market positioning.
Forward-looking information is subject to known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements of the Company to differ materially from those expressed or implied by such forward-looking information. These risks and uncertainties include, but are not limited to: the Company's ability to successfully license and operationalize the Hope Facility; changes in consumer preferences; regulatory changes; economic and industry conditions; reliance on key personnel and partners; competition; risks related to international expansion; and other risk factors set forth in the Company's public filings available on SEDAR+ at www.sedarplus.ca.
Readers are cautioned not to place undue reliance on such forward-looking information. Although the Company has attempted to identify important risk factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other risk factors not presently known to the Company or that the Company presently believes are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking information.
All forward-looking information in this press release is made as of the date hereof and is based on the beliefs, estimates, and opinions of management as of the date such statements are made. The Company undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, future events, or otherwise, except as required by applicable law.
1 Adjusted EBITDA is a non-GAAP measure that is calculated as earnings (losses) from operations before interest, tax, depreciation and amortization, share-based compensation expense, and fair value changes. See Selected Financial Information for details on the Adjusted EBITDA calculation.
2 All retail market share data is sourced from Hifyre for the periods January 2025 to June 2025, April 2025 to June 2025, January 2024 to June 2024, and April 2024 to June 2024.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
28 minutes ago
- Yahoo
Joly: Visits to Saab, Lockheed 'normal' part of her job amid F-35 review
OTTAWA — Industry Minister Mélanie Joly says Canadians shouldn't read too much into her visit to a Swedish defence manufacturer that comes right in the middle of a major government review of the F-35 fighter jet procurement. Joly says she visited Saab's facilities in Sweden this week and was shown the Gripen-E jet, which is one of the possible contenders to replace the controversial U.S.-made F-35 fighter jet. Prime Minister Mark Carney ordered the review shortly after he became prime minister in March, as Canada sought tighter security and defence ties with Europe in response to U.S. President Donald Trump's trade war. The review is to be completed by the end of the summer and Joly says her role in it is to ensure the Canadian government understands all its options and what the industrial benefits to Canada would be in its final decision. Joly says this is a "normal" part of her job, and that she will also be meeting with Lockheed Martin, which makes the F-35, in the coming weeks. Joly is wrapping up a trip to Sweden and Finland with Secretary of State for Defence Stephen Fuhr, which was focused on strengthening defence-industrial ties in Europe. This report by The Canadian Press was first published Aug. 20, 2025. Kyle Duggan, The Canadian Press Sign in to access your portfolio
Yahoo
28 minutes ago
- Yahoo
Lowe's buys Foundation Building Materials for $8.8 billion
Home improvement retailer Lowe's is purchasing construction products supplier Foundation Building Materials, in a transaction valued at roughly $8.8 billion. Wednesday's announcement signals a major push into the contractor-focused side of Lowe's business. The company's stock was up 0.8% to $258.50 as of 12:45pm EST on Wednesday, after the retailer also lifted its full-year revenue outlook and delivered stronger-than-expected quarterly earnings . Foundation Building Materials, based in California, provides drywall, framing, ceiling systems, doors and hardware to nearly 40,000 customers across more than 370 warehouses in the U.S. and Canada. Roughly 70% of Lowe's annual sales still come from do-it-yourself shoppers. However both Lowe's and its chief competitor, Home Depot, have been striking acquisitions to capture a bigger slice of the $250 billion market for professional builders, at a time when consumer-driven home projects have slowed. In April, Lowe's paid $1.33 billion for Artisan Design Group, while Home Depot in June agreed to purchase GMS, a specialty distributor, for about $4.3 billion. 'Consolidation among suppliers serving the trade is clearly accelerating, and we anticipate this will remain a theme as rivalry between large players intensifies,' J.P. Morgan analyst Christopher Horvers said in a client note viewed by Reuters. Both Lowe's and Home Depot are leaning more heavily on their professional contractor base, which has become a stable counterweight to softer DIY demand. Home Depot posted its second quarter earnings on Tuesday, which revealed weakening big-ticket sales, as consumers pulled back from kitchen remodels and bath overhauls. Foot traffic slipped about 2%, according to underscoring the caution hanging over the home-improvement markets. Yet, professional contractors still need roofing, lumber, and bulk orders to keep their businesses moving even when homeowners step back from ambitious remodels. What's more, the U.S. has a housing shortfall of 3.8 million, according to a report by This is partially due to the 2008 crash, which triggered a collapse in new construction. Over the past 15 years, roughly 1.23 million homes were built annually —18% fewer than the average from 1968–2000. However, new-home construction outpaced household formations last year, for the first time since 2016, according to Considering the country's urgent need for new homes, Lowe's and Hope Depot may feel that contractor-focused offerings are more durable than non-essential home improvement supplies, as consumers brace for tariff-related inflation in the months, or even years, to come. Shannon Carroll contributed to this in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28 minutes ago
- Yahoo
Saskatchewan Premier Moe announces plan to upgrade important road for farming sector
YORKTON — Saskatchewan Premier Scott Moe says the province plans to cover half the improvement cost for a road deemed crucial for economic activity in the farming sector. Moe says Grain Millers Drive in Yorkton, northeast of Regina, is a critical access point for major agriculture businesses, connecting farmers to national and international markets. The premier didn't say how much money the province would provide, as the upgrade won't happen until the needed improvements are determined. Grain Millers Drive provides access to an oat mill and two canola crush facilities, including one crusher that's the largest in North America. Moe's announcement comes after China slapped a tariff of nearly 76 per cent on Canadian canola, causing the value of the crop to fall significantly. The premier is set to meet with federal Agriculture Minister Heath MacDonald this week to discuss Canada's response to Chinese tariffs. "Grain Millers Drive plays a vital role in supporting Yorkton's world class agribusiness sector, and these improvements will ensure the road can safely and efficiently accommodate growth, both now and in the future,' Yorkton Mayor Aaron Kienle said in a news release Wednesday. This report by The Canadian Press was first published Aug. 20, 2025. The Canadian Press
