OrganiGram (NasdaqGS:OGI) Q1 2026 Earnings call February 10, 2026 08:00 AM ET Company ParticipantsGreg Guyatt - CFOJames Yamanaka - CEOMax Schwartz - Director of Investor RelationsPablo Zuanic - Managing DirectorConference Call ParticipantsAaron Grey - Research AnalystBrenna Cunnington - Research AnalystKenric Tyghe - Stock AnalystOperatorI will now hand the call over to Max Schwartz, Director of Investor Relations. Please go ahead.Max SchwartzVery much, Kara. Good morning, everyone. Thanks for joining us t ...

Industry Overview - The U.S. cannabis sector is evolving in early 2026, presenting both risks and opportunities for investors [1] - Regulatory uncertainty has shifted focus towards efficiency, balance sheet repair, and selective growth among operators [1][2] - Potential federal reforms could significantly reshape industry valuations, prompting investors to be more selective [1][2] Investment Focus - Traders are prioritizing companies with established market positions, improving cash flow, and scalable infrastructure [2] - Multi-state operators are expected to benefit from future regulatory changes, including federal tax treatment and banking access [2] Market Volatility - The cannabis market remains volatile, necessitating disciplined risk management [3] - Many stocks are trading below previous highs, creating opportunities for patient investors [3] - Weaker operators may face challenges if capital markets remain tight, emphasizing the importance of company selection [3] February 2026 Outlook - February 2026 is anticipated to be significant for the sector, influenced by earnings updates, regulatory news, and market sentiment [4] - Investors are looking for stocks that combine scale, brand strength, and improved financial discipline [4] Featured Companies AYR Wellness Inc. (AYRWF) - AYR Wellness is a vertically integrated operator with a growing national footprint, primarily in Florida and other states [6][8] - The company focuses on operational control across the supply chain, allowing adjustments based on market demand [9] - Recent restructuring efforts aim to strengthen liquidity and reduce financial strain, with a focus on cost control and cash flow trends [10][11] Cresco Labs Inc. (CRLBF) - Cresco Labs is a well-established multi-state operator with a strong presence in both medical and adult-use markets [12][14] - The company emphasizes brand consistency and consumer trust, with a dual approach of retail and wholesale operations [15] - Financially, Cresco generates high revenue totals, focusing on improving adjusted EBITDA and operating cash flow [16][17] Glass House Brands Inc. (GLASF) - Glass House Brands operates with a strong focus on California, utilizing large greenhouse facilities for cost-efficient production [18][20] - The company emphasizes operational efficiency and quality control through vertical integration [21] - Financial performance has been uneven due to market challenges, but increased production volumes and potential regulatory improvements could support future growth [22][23]

Core Viewpoint - The U.S. cannabis sector is evolving as 2026 begins, with multi-state operators positioned for long-term growth despite ongoing volatility creating both risks and opportunities. Investors are focusing on companies with scale and brand strength, specifically AYR Wellness, Curaleaf Holdings, and Verano Holdings [1]. AYR Wellness Inc. (AYRWF) - AYR Wellness is a vertically integrated cannabis operator with a growing national footprint, operating cultivation, manufacturing, and retail assets across several states. The company serves both medical and adult-use customers and emphasizes premium flower and derivative products [2]. - AYR has faced industry-wide challenges, with revenue growth slowing due to pricing pressure and competition. However, it continues to generate meaningful top-line sales, and gross margins remain stable compared to peers. Operating expenses are elevated, impacting profitability, but liquidity management remains a priority [4]. Curaleaf Holdings Inc. (CURLF) - Curaleaf is one of the largest cannabis companies in the U.S., with a broad footprint across many legalized states and dozens of dispensaries. The company serves both medical and adult-use consumers, offering a wide range of branded products [5][7]. - Financially, Curaleaf demonstrates relative strength with high revenue, although year-over-year growth has slowed. Gross margins remain competitive, and operating cash flow has improved, supporting balance sheet flexibility. Cost controls have helped protect margins, and international operations contribute to incremental growth [9]. Verano Holdings Corp. (VRNOF) - Verano Holdings operates dispensaries across multiple high-value states and has a strong retail focus. The company prioritizes disciplined expansion in markets with strong demand fundamentals and emphasizes premium branding and customer experience [10]. - Despite generating significant revenue, Verano faces profitability challenges due to pricing compression affecting margins. Elevated operating expenses and interest costs have led to persistent net losses, but cash reserves support near-term operations. Management is focused on improving efficiency and reducing long-term expenses [12]. Overall Market Outlook - As January 2026 unfolds, the U.S. cannabis market is in transition, with AYR Wellness, Curaleaf, and Verano each offering unique strengths and sizable retail footprints. Financial discipline is critical, and investors should closely monitor margins, cash flow, and balance sheets as market conditions may improve over time [14].

Industry Overview - The U.S. cannabis industry is projected to approach $45 billion by 2025, driven by increasing demand for both medical and recreational use as more states expand access [1] - Marijuana penny stocks are gaining popularity due to their potential for sharp gains and quick movements, especially with recent optimism surrounding possible federal rescheduling [1][2] AYR Wellness Inc. (AYRWF) - AYR Wellness is a multi-state operator with a strong presence in Florida, operating over 70 dispensaries across the U.S. and focusing on both medical and recreational markets [3][5] - The company is recognized for its commitment to customer experience, product consistency, and strong branding, positioning itself as a developing leader among penny-level operators [3][6] - Recent financial performance shows stable revenue, with a focus on cost reduction and operational improvements to support sustainable profitability [5][6] Cansortium Inc. (CNTMF) - Cansortium operates under the Fluent brand, primarily in Florida, with over 30 dispensaries and a focus on high-quality medical products [7][10] - The company emphasizes operational efficiency and has streamlined its operations to improve gross margins and cash flow [10] - Despite facing regulatory costs and market saturation, Cansortium's controlled growth strategy and expanding patient network provide significant upside potential [10] Verano Holdings Corp. (VRNO) - Verano is a major multi-state operator with over 130 dispensaries, known for its premium brands and vertically integrated infrastructure [11][12] - The company has invested heavily in cultivation and manufacturing, ensuring reliable product quality and a diverse product lineup [12][13] - Recent financial performance indicates revenue growth driven by rising consumer adoption, although regulatory costs continue to pressure net profits [15]

Core Insights - Ayurcann Holdings Corp. reported financial and operational results for Q1 2026, highlighting a gross revenue of $14,638,697 and a gross profit of $2,236,343, resulting in a gross margin of 26% [2] - The company is recognized as a Top 3 vape producer in Ontario, holding a 5% share of the national vape market and a 7% share in Ontario [3] - Ayurcann has launched 30 new stock keeping units in the last six months, enhancing its product offerings in vapes, pre-rolls, and concentrates [4] Financial Performance - Gross revenue for Q1 2026 was $14,638,697, a slight decrease from $14,657,485 in Q1 2025 [2] - Gross profit decreased from $3,321,974 in Q1 2025 to $2,236,343 in Q1 2026, indicating a shift in profitability [2] - The gross margin fell from 40% in Q1 2025 to 26% in Q1 2026, reflecting changes in cost structure or pricing strategy [2] Market Position - Ayurcann has established itself as a leading player in the vape segment, contributing to its overall market share and brand recognition [3] - The company is focusing on expanding its distribution network across licensed stores in Canada, strengthening its position as a trusted supplier [5] Operational Efficiency - Ayurcann is recognized for its operational discipline, consistently delivering strong output and quality [4] - The company has demonstrated a commitment to innovation by introducing a significant number of new products in a short timeframe [4]

Core Viewpoint - Kenmare Resources plc provides an update on the Wet Concentrator Plant A upgrade project and revises its 2025 production guidance due to commissioning challenges and market conditions [2][4]. WCP A Upgrade Project Overview - The upgrade of WCP A includes the installation of two new high-capacity dredges and a new feed preparation module, with commissioning progressing since October 2, 2025 [3][7]. - The capital cost estimate for the WCP A upgrade remains unchanged at $341 million [6]. - The transition to the Nataka ore zone, which represents approximately 70% of Moma's Mineral Resources, is crucial for securing long-term production [5]. Production Guidance Update - The revised production guidance for 2025 is now set at 870,000 to 905,000 tonnes of ilmenite, down from the original guidance of 930,000 to 1,050,000 tonnes [12][15]. - Rutile production is expected to be between 8,500 to 9,500 tonnes, also revised from previous estimates [12][15]. - The company anticipates that lower production will not impact sales in 2025, as Q4 is typically a strong period for shipments [5][13]. Cost Guidance - Total cash operating cost guidance remains at $228 to $252 million, while cash costs per tonne of finished product are now expected to be $235 to $245 due to lower anticipated production volumes [13][15]. - Development capital expenditure guidance for the WCP A project is now expected to be $170-175 million, slightly increased from the previous estimate of $165 million [14][15]. Future Outlook - The company plans to announce its Q4 2025 Production Report and guidance for 2026 on January 21, 2026 [16].

Core Insights - The U.S. cannabis sector is evolving with more states expanding medical and recreational markets, creating opportunities for multi-state operators despite recent volatility due to regulatory uncertainty and shifting consumer demand [1][2] - Long-term expectations for the industry remain positive, particularly as discussions around federal reform and cannabis banking access progress [1] - Investors should focus on operators with scale, strategic market positions, and disciplined financial planning, as well as those maintaining a consistent brand identity [1][2] Company Summaries Trulieve Cannabis Corp. (TCNNF) - Trulieve is a leading multi-state cannabis operator with a strong presence in Florida and over 225 dispensaries across the U.S. by 2025 [3][6] - The company employs a vertically integrated model, controlling cultivation, processing, and retail distribution, which supports strong brand awareness and market reach [3][6] - Financially, Trulieve has shown steady year-over-year revenue growth and maintained strong gross margins, while working on reducing operational expenses and improving supply chain efficiency [6] Verano Holdings Corp. (VRNOF) - Verano is a significant multi-state operator with over 150 dispensaries nationwide, focusing on premium cannabis products and maintaining control over quality through vertically integrated production [7][10] - The company has demonstrated improving operational performance with positive adjusted EBITDA margins and strong cost controls, despite facing industry-wide challenges [9][10] - Verano's wide retail footprint and recognizable brand position it for long-term growth as regulatory conditions evolve [10] AYR Wellness Inc. (AYRWF) - AYR is a vertically integrated cannabis company with a presence in key U.S. states, focusing on brand consistency and localized consumer connections [11][13] - The company has achieved revenue growth through store openings and product expansion, although profitability has been pressured by operational expenses and competition [13] - AYR is working on improving efficiency and maintaining liquidity, signaling a potential path toward greater financial stability if market demand strengthens [13]

High Tide Conference Call Summary Company Overview - **Company Name**: High Tide (NasdaqCM: HITI) - **Ticker**: HITI on NASDAQ since 2021 and TSX Venture Exchange since 2018 - **Main Operating Company**: Canna Cabana, the largest retail cannabis brand in Canada with over 207 stores [2][3] Financial Performance - **Trailing Revenue**: Approximately CAD 683 million, including recent acquisitions [2] - **Adjusted EBITDA**: CAD 58 million, with a pro forma trailing adjusted EBITDA multiple of 8.8 times [3] - **Same-Store Sales Growth**: Up 137% since October 2021, compared to a 2% decline for peers [4][14] - **Market Share**: 12% in the five provinces of operation, with a target to reach 15% [4][15] - **Revenue per Square Foot**: CAD 1,735, outperforming many blue-chip retailers [5][16] - **Free Cash Flow**: Generated CAD 4 million in July 2023, five months ahead of schedule [25][26] Recent Developments - **Acquisition**: Acquired 51% of Ramexian Pharma, a leading medical cannabis importer in Germany, for €26.4 million [19] - **Market Expansion**: Entering the German market, which has seen a significant increase in patient counts from 250,000 to 900,000 [20][21] - **Growth in German Cannabis Imports**: Annualized imports increased from CAD 30-40 million to CAD 300 million post-reclassification of medical cannabis [23] Strategic Insights - **Retail Strategy**: Focus on smaller, efficient store sizes (1,200 to 1,500 square feet) rather than larger stores [9][18] - **Loyalty Program**: 2.15 million loyalty members, with 115,000 ELITE members paying CAD 35 annually for additional discounts [4][12] - **Consumer Preferences**: Pre-rolls and dried flower account for about two-thirds of sales, with vapes at 22% [7][8] Market Context - **Canadian Cannabis Market**: Legalized in October 2018, now a CAD 5.5 billion market, with Canna Cabana's operations in a CAD 4.5 billion retail market [6] - **Competitive Landscape**: Canna Cabana's average store revenue significantly exceeds that of peers, with Alberta stores averaging CAD 2.3 million and Ontario stores over CAD 3.1 million [14][15] Future Outlook - **Store Growth**: Targeting to exceed 300 stores, with plans to open 20-30 new stores annually [27] - **Vertical Integration**: Exploring opportunities in cannabis accessories and white-label products, though full vertical integration is limited by regulations [34][36] - **International Expansion**: Monitoring other European markets (UK, Poland, Czech Republic, Switzerland) for potential entry [32] Key Takeaways - High Tide is positioned as a leading innovative retailer in the cannabis space, with strong financial metrics and growth potential in both Canada and Germany [41] - The company is leveraging its retail relationships to capitalize on the growing medical cannabis market in Germany, aiming for significant market share [42]

Industry Overview - The U.S. cannabis industry is rapidly expanding, with legal sales reaching nearly $30 billion in 2024 and projected to surpass $45 billion by 2028, driven by increased state legalization and changing consumer demand [1][3] - Federal rescheduling discussions are ongoing, with lawmakers considering moving cannabis to Schedule III, which could enhance banking access and reduce tax burdens [1][3] Key Companies - Green Thumb Industries Inc. (GTBIF), Curaleaf Holdings Inc. (CURLF), and Verano Holdings Corp. (VRNOF) are highlighted as top stocks to watch, each operating numerous dispensaries and possessing significant cultivation capacity [4][6][27] Green Thumb Industries Inc. (GTBIF) - Green Thumb operates over 90 dispensaries, primarily in Illinois, Pennsylvania, and Ohio, and is recognized as a vertically integrated operator with control over cultivation, processing, and retail [5][7] - The company reported quarterly revenue exceeding $275 million, maintaining profitability and showing resilience despite challenges in competitive markets [9][11] - Green Thumb's financials indicate improved margins due to higher retail sales and efficient operations, with stable debt levels enhancing financial flexibility [10][11] Curaleaf Holdings Inc. (CURLF) - Curaleaf operates over 140 dispensaries across more than 15 states, with a strong presence in Florida, New York, New Jersey, and Arizona [12][15] - The company posted quarterly revenue above $330 million, confirming its status as the largest revenue generator among U.S. cannabis companies, while also reducing operating losses [16][18] - Curaleaf's aggressive acquisition strategy and focus on high-demand markets position it as a competitive player in the industry [15][19] Verano Holdings Corp. (VRNOF) - Verano operates more than 140 dispensaries, primarily in Florida, New Jersey, and Illinois, and emphasizes customer experience and premium store design [19][21] - The company reported quarterly revenue of around $235 million, with positive adjusted EBITDA and improved operating income due to reduced expenses [24][25] - Verano's ongoing expansion and financial discipline, along with manageable debt levels, make it a significant competitor in the U.S. cannabis market [26][27]

Core Viewpoint - Kenmare Resources plc reported its Half-Yearly Financial Report for H1 2025, highlighting a 3% increase in mineral product revenue, challenges with operating costs, and ongoing negotiations with the Government of Mozambique regarding the renewal of the Moma Implementation Agreement [1][2][4][5]. Financial Performance - Mineral product revenue reached $159.6 million in H1 2025, up 3% year-on-year, driven by stronger shipments and a higher average price received [6][55]. - Adjusted EBITDA was $47.2 million, down 25% year-on-year, with a margin of 30% [6][55]. - The company recognized a non-cash impairment loss of $100.3 million due to lower projected future revenue assumptions [6][55]. - Adjusted profit after tax was $6.1 million, down 71% year-on-year [6][55]. - Cash operating costs increased to $248 per tonne, up 14% year-on-year, primarily due to higher direct operating costs [6][63]. Operational Highlights - HMC production was 670,600 tonnes, up 2% year-on-year, while total finished product production increased to 500,800 tonnes, also up 2% year-on-year [24][28]. - Total shipments in H1 2025 were 488,900 tonnes, reflecting a 2% increase year-on-year [32]. - The company is on track to achieve its 2025 production and cost guidance, with expectations for stronger shipments in H2 2025 [3][26][82]. Market Dynamics - Demand for Kenmare's ilmenite remains strong, supported by a stable global pigment market and growth in the titanium metal market [11][50]. - Ilmenite prices in H1 2025 were marginally below those of H2 2024, while the average price received per tonne was $326, up 1% year-on-year [50][60]. - The zircon market remains subdued, with demand negatively impacted by the substitution of zircon for lower-cost materials [53]. Capital Projects - The Wet Concentrator Plant A upgrade project is progressing well, with $208 million spent by the end of H1 2025, representing 60% of the total project budget of $341 million [3][36][81]. - The company plans to increase development capital expenditure guidance for 2025 from $150 million to $165 million due to updated expenditure phasing [3][36]. Corporate Developments - Kenmare has been in negotiations with the Government of Mozambique for nearly three years regarding the renewal of the Moma Implementation Agreement, expressing concerns over the prolonged process [5][20][23]. - The company appointed James McCullough as the new Chief Financial Officer on 1 May 2025, bringing extensive experience from Rio Tinto Plc [46].