- Delivered quarterly net revenue of $13.7 million for Q1 2026 (11% increase from Q1 2025).
- Adjusted EBITDA1 loss of $0.6 million for Q1 2026 (compared to positive $0.7 million in Q1 2025) driven by Cascadia pre-revenue scale-up and B.C. strike impact.
- #1 premium licensed producer in Canada with 7.5% of the market share.2
- Cascadia facility in full production with quality and yields meeting or exceeding internal expectations. First commercial sales expected by mid-2026.
- In April, expanded the total addressable market for the Company's largest and most awarded brand with the 1964 Supply CoTM launch in the U.K.
VANCOUVER, British Columbia, May 14, 2026 (GLOBE NEWSWIRE) -- Rubicon Organics Inc. (TSXV: ROMJ) (OTCQX: ROMJF) ("Rubicon Organics" or the "Company"), Canada's leading premium licensed producer focused on cultivating and selling premium and super-premium cannabis products, announces it has reported its financial results for the quarter ended March 31, 2026. All financial information in this press release is reported in Canadian dollars, unless otherwise noted.
"As we enter the final stages of the Cascadia scale-up, our Q1 financials reflect the transitional nature of this period, delivering revenue growth but with expected short-term declines in Adjusted EBITDA and gross margins," said CEO Margaret Brodie. "Margins were also impacted by seasonal market conditions and lingering effects of the B.C. strike."
"With the cost and supply infrastructure now in place, we expect this to translate into meaningful improvements in gross margin, Adjusted EBITDA, and cash flow in the second half of 2026," said CFO Glen Ibbott.
Q1 2026 Highlights:
- Net revenue of $13.7 million (11% increase from Q1 2025), with growth in flower and pre-rolls in our 1964 and Simply Bare brands, despite the lingering effects of the strike at the B.C. provincial distributor.
- Gross margin of $3.5 million (18% decrease from Q1 2025), driven mainly by the addition of Cascadia operating costs in Q1 2026.
- Adjusted EBITDA1 loss of $0.6 million for Q1 2026 (compared to positive $0.7 million in Q1 2025).
- Achieved #1 national market share of premium flower at 10.3%2 of the market, an increase of over 3% compared to Q1 2025.3
- WildflowerTM is the #2 topical brand in Canada with market share of 25.7% and #1 topical SKU in Canada. 2
- 8.7% national market share of premium vapes. 2
- Completed the first harvest of the Cascadia facility with production quality projected to reach flagship-brand standards by mid-2026 and harvests to be monetized starting late Q2.
| Results of Operations ($000s) | ||||
| For the three months ended: | March 31, 2026 | March 31, 2025 | ||
| Net revenue | - | 13,689 | - | 12,376 |
| Cost of Sales | 10,949 | 8,589 | ||
| Gross profit before fair value adjustments | 2,740 | 3,787 | ||
| Fair value adjustments to cannabis plants, inventory sold, and other charges | 731 | 440 | ||
| Gross profit | - | 3,471 | - | 4,227 |
As at: | ||||
| Cash and cash equivalents | - | 3,189 | - | 7,781 |
| Working capital | - | 20,194 | - | 20,571 |
Subsequent Sales & Operational Highlights
On April 7, 2026, the Company was recognized with three awards at the 2026 High Buds Club Awards, voted on by over 1,000 budtenders across Canada. Awards included Brand of the Year for 1964, Indica Flower of the Year for Stinky Pinky, and Topical of the Year for the WildflowerTM Extra Strength Relief Stick.
On April 12, 2026, the Company announced the launch of its 1964 brand in the U.K. medical cannabis market through a distribution partnership with 4C LABS (a cannabis-based pharmaceutical and telehealth company), representing the brand's first international route to market.
On April 27, 2026, the Company entered into an amendment to its existing line of credit agreement with Community Savings Credit Union to temporarily increase the available credit from $1.0 million to $2.5 million, with the additional capacity intended to support working capital requirements during the ramp up of the Cascadia Facility.
On May 11, 2026, the Company announced that its Cascadia facility has achieved Good Agricultural and Collection Practices ("GACP") certification. GACP certification confirms that Cascadia meets international requirements for product consistency, contamination control, traceability, and documentation, and applies specifically to the agricultural stage of production, supporting the cultivation of high-quality cannabis for regulated medical markets.
2026 Outlook
Leveraging Our New Scale
Demand for our flower products has consistently exceeded our available supply. With the Cascadia Facility now licensed and fully operational, 2026 marks a pivotal year for Rubicon. We are building the teams, systems, and infrastructure needed to support the next phase of growth, and we expect premium quality cannabis grown at Cascadia to be available to the market by mid-2026. As a result, we view 2026 as an inflection point, with the second half of the year expected to reflect the full benefit of Cascadia to Rubicon's revenue growth, gross margins, Adjusted EBITDA1, and cash flow.
The combined annual production capacity of 15,500 kg across our two complementary facilities, the Pacifica greenhouse and the Cascadia indoor facility, positions us well to meet growing domestic and international demand for premium cannabis. Furthermore, this figure reflects current operational output. As operations mature and yield improvements and efficiencies are realized, we expect production to increase meaningfully over the next several years, supporting our ability to serve a broader customer base and fulfill larger supply commitments.
The acquisition, licensing, and rapid operationalization of the Cascadia Facility is a direct demonstration of our commitment to capturing this opportunity and our ability to execute with speed and purpose. The facility is now fully planted and we have completed its first harvests. The Company has also just received its GACP certification for Cascadia. Achieving this certification supports our ability to meet international medical market requirements and enhance our credentials in maintaining quality and consistency throughout our portfolio.
Continued Emphasis on Genetics
Our deep genetics library remains a core strategic differentiator. In 2026, we are focused on demonstrating the depth and consistency of that library through a disciplined cadence of new genetic launches across our brand portfolio. Recent additions include BC Organic Lime Drizzle and BC Organic Tangerine Sunrise under Simply Bare, and Kush Mints under 1964. We believe a steady pipeline of sought-after cultivars is essential to maintain our leadership in the premium and super-premium segments of the Canadian market and drive long-term consumer loyalty.
International
Building on the success of our inaugural international shipments in 2025, we are moving forward on our international strategy in 2026. In April, the Company launched 1964 in international markets with its first branded shipment of products in the U.K. This marks the international introduction of the 1964 brand to a key market and represents a meaningful step in establishing Rubicon's premium brands to a larger addressable global market.
Margin Improvements
Improving gross margin is a key financial priority for 2026 and we are actively pursuing several initiatives to achieve this. Central to our approach is leveraging the increased scale of our two-facility growing operations to more efficiently absorb our fixed production costs over higher production volumes. Additionally, we are committed to improving our yields as we continue to explore promising methods towards meaningful improvements in cultivation. Ongoing yield gains derived both from genetic selection and facility optimization are expected to be key contributors to margin expansion over the course of this and future years.
While we are well-positioned to meet the growing demand for our product, the B.C. market experienced softness entering 2026, partly attributable to a strike late in 2025, which has affected results early in the year. We continue to monitor this market closely and remain confident in its long-term recovery.
Financial Growth
For 2026, we are forecasting growth in both net revenue and Adjusted EBITDA, driven by our newly realized capacity increases and ongoing strategic initiatives. As anticipated, gross margin and Adjusted EBITDA were softer in the first quarter of 2026 which is expected to continue through the first half of the year, reflecting continued investment in the ramp-up of the Cascadia Facility ahead of its initial revenues, and resulting in higher near-term cash outflows. As production from Cascadia comes online and revenues are realized, we expect a meaningful acceleration in gross margins, Adjusted EBITDA, and operating cash inflows through the second half of 2026. Based on our current view of demand for our products, we remain confident that the growth exhibited in 2025, which culminated in record revenues, is expected to continue.
Conference Call
The Company will be hosting a conference call to discuss the results on Thursday, May 14, 2026. Conference call details are as follows:
| Time: | 7:00 AM PT / 10:00 AM ET |
| Conference ID: | 07358 |
| Local dial-in: | (+1) 289 514 5100 |
| Toll Free N. America: | (+1) 800 717 1738 |
| Webcast: | https://onlinexperiences.com/scripts/Server.nxp?LASCmd=AI:4;F:QS!10100&ShowUUID=21FEC8DB-8637-4750-BECF-25BDBF489660 |
ABOUT RUBICON ORGANICS INC.
Rubicon Organics is the Canadian leader in certified organic and premium 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 operates two complementary cultivation facilities in British Columbia: the flagship 125,000-square-foot Pacifica hybrid greenhouse in Delta and the 47,500-square-foot Cascadia indoor facility in Hope, acquired in 2025 and expected to increase annual production capacity by approximately 40% and begin generating revenue in the first half of 2026.
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 continues to evolve and global demand for high-quality cannabis increases, Rubicon Organics' disciplined execution, brand equity, and consumer loyalty set it apart. The Company's continued focus on premium quality, thoughtful innovation, and operational excellence has supported steady revenue growth and positive Adjusted EBITDA.
Rubicon Organics represents a rare combination of category leadership, operational strength, and long-term growth potential.
For more information visit www.rubiconorganics.com.
CONTACT INFORMATION
Margaret Brodie
CEO
Phone: +1 (437) 929-1964
Email: ir@rubiconorganics.com
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, 2025, 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, fair value changes, and pre-revenue startup costs. The following table presents the Company's reconciliation of Adjusted EBITDA to the most comparable IFRS financial measure for the three months ended March 31, 2026 and 2025.
| ($000s) | Three months ended | |||||
| March 31, 2026 | March 31, 2025 | |||||
| Loss from operations | - | (2,529 | - | - | (111 | - |
| IFRS fair value accounting related to cannabis plants and inventory | (731 | - | (440 | - | ||
| Depreciation and amortization | 1,157 | 765 | ||||
| Share-based compensation expense | 333 | 504 | ||||
| Cascadia pre-revenue startup costs* | 1,186 | - | ||||
| Adjusted EBITDA | - | (584 | - | - | 718 | |
*Consistent with industry practice, beginning in Q3 2025 the Company has adjusted Cascadia Facility pre-revenue startup costs from Adjusted EBITDA to show a comparable and consistent operating performance measure
Cautionary Statement Regarding Forward Looking Information
This press release contains forward-looking information within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance, statements regarding Rubicon Organics' goal of achieving industry leading profitability are "forward-looking statements". Forward-looking information can be identified by the use of words such as "will" or variations of such word or statements that certain actions, events or results "will" be taken, occur or be achieved.
Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward looking statements. The forward-looking information in this press release is based upon certain assumptions that management considers reasonable in the circumstances, including the impact on revenue of new products and brands entering the market, and the timing of achieve Adjusted EBITDA1 profitability and cashflow positive. Risks and uncertainties associated with the forward looking information in this press release include, among others, dependence on obtaining and maintaining regulatory approvals, including acquiring and renewing federal, provincial, local or other licenses and any inability to obtain all necessary governmental approvals licenses and permits for construction at its facilities in a timely manner; regulatory or political change such as changes in applicable laws and regulations, including bureaucratic delays or inefficiencies or any other reasons; any other factors or developments which may hinder market growth; Rubicon Organics' limited operating history and lack of historical profits; reliance on management; and the effect of capital market conditions and other factors on capital availability; competition, including from more established or better financed competitors; and the need to secure and maintain corporate alliances and partnerships, including with customers and suppliers; and those factors identified under the heading "Risk Factors" in Rubicon Organic's annual information form dated March 23, 2026 filed with Canadian provincial securities regulatory authorities.
These factors should be considered carefully, and readers are cautioned not to place undue reliance on such forward-looking statements. Although Rubicon Organics has attempted to identify important risk factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other risk factors that cause actions, events or results to differ from those anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in forward-looking statements. Rubicon Organics assumes no obligation to update any forward-looking statement, even if new information becomes available as a result of future events, new information or for any other reason except as required by law.
We have made numerous assumptions about the forward-looking statements and information contained herein, including among other things, assumptions about: optimizing yield, achieving revenue growth, increasing gross profit, operating cashflow and Adjusted EBITDA1 profitability. Even though the management of Rubicon Organics believes that the assumptions made, and the expectations represented by such statements or information are reasonable, there can be no assurance that the forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in forward-looking statements. Investors are cautioned against undue reliance on forward-looking statements or information. Forward-looking statements and information are designed to help readers understand management's current views of our near and longer term prospects and may not be appropriate for other purposes. Rubicon Organics assumes no obligation to update any forward-looking statement, even if new information becomes available as a result of future events, changes in assumptions, new information or for any other reason except as required by 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, fair value changes, and pre-revenue startup costs. See Non-GAAP Financial Measures for details on the Adjusted EBITDA calculation.
2 Hifyre data for the three months ended March 31, 2026
3 Hifyre data for the three months ended March 31, 2025
