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• OGO delivered Q3 revenue of $15.1M (+189% YoY), above our $13.5M estimate, marking the Company’s fourth consecutive quarter with >100% YoY revenue growth.
• Gross margin was 8.2% and EBITDA was ($0.7M), lower than our estimates, although operating costs continued to scale efficiently.
• We recently re-initiated coverage on OGO and conducted an interview with CEO Steve Bromley; see the full report here and interview here.
Yesterday, after market close, Organto Foods (OGO:TSXV, OGOFF:OTC) reported Q3 financial results that came in mixed versus our expectations, with revenue ahead of our forecast while profitability trailed. Results reflected continued sales momentum (+189% YoY) as both new and existing customers contributed to growth, though margins were slightly weak. Operating expenses continued to stabilize following the sale of subsidiaries in 2024, and the balance sheet improved meaningfully as a result of the restructuring efforts. We are maintaining our BUY rating and target price of $1.00/share on Organto Foods.
Q3/25 Highlights
• OGO reported $15.1M in revenue compared to our estimate of $13.5M. This represented 189% YoY growth and the Company’s third largest quarter in its history. This was due to new customers added to OGO’s roster and a number of existing customers increasing their purchases.
• This was OGO’s fourth consecutive quarter with >100% YoY revenue growth, and Q3 represented 73% of 2024 sales. This was OGO’s fourth consecutive quarter with >100% YoY revenue growth, and Q3 represented 73% of 2024 sales.
• Gross margin for the quarter came in at 8.2% compared to our estimate of 9.0% and 11.8% in Q3/24 (all-time high). Gross profit in dollars increased 101% YoY. This is a solid gross margin for OGO, given the 7.4% reported in Q2 and 8.2% reported in Q1.
• EBITDA came in at ($0.7M) vs. our estimate of $0.2M and ($0.4M) last year due to the impact of losses on derivatives used to manage currency risk.
• Cash operating expenses were 8.7% of sales compared to 18.2% in the prior year, improving as the business scales and overheads are leveraged.
• OGO ended the quarter with $9.3M in cash (incl. restricted cash) and $2.5M in debt, prior to the prepayment of its convertible notes. This compares to debt of $12.5M in Q3/24, showcasing the effective restructuring.
• Organto’s current ratio was 2.0x, reflecting a largely strengthened balance sheet compared to its history of
OGO: 189% YoY Revenue Growth in Q3
What you need to know:• OGO delivered Q3 revenue of $15.1M (+189% YoY), above our $13.5M estimate, marking the Company’s fourth consecutive quarter with >100% YoY revenue growth.
• Gross margin was 8.2% and EBITDA was ($0.7M), lower than our estimates, although operating costs continued to scale efficiently.
• We recently re-initiated coverage on OGO and conducted an interview with CEO Steve Bromley; see the full report here and interview here.
Yesterday, after market close, Organto Foods (OGO:TSXV, OGOFF:OTC) reported Q3 financial results that came in mixed versus our expectations, with revenue ahead of our forecast while profitability trailed. Results reflected continued sales momentum (+189% YoY) as both new and existing customers contributed to growth, though margins were slightly weak. Operating expenses continued to stabilize following the sale of subsidiaries in 2024, and the balance sheet improved meaningfully as a result of the restructuring efforts. We are maintaining our BUY rating and target price of $1.00/share on Organto Foods.
Q3/25 Highlights
• OGO reported $15.1M in revenue compared to our estimate of $13.5M. This represented 189% YoY growth and the Company’s third largest quarter in its history. This was due to new customers added to OGO’s roster and a number of existing customers increasing their purchases.
• This was OGO’s fourth consecutive quarter with >100% YoY revenue growth, and Q3 represented 73% of 2024 sales. This was OGO’s fourth consecutive quarter with >100% YoY revenue growth, and Q3 represented 73% of 2024 sales.
• Gross margin for the quarter came in at 8.2% compared to our estimate of 9.0% and 11.8% in Q3/24 (all-time high). Gross profit in dollars increased 101% YoY. This is a solid gross margin for OGO, given the 7.4% reported in Q2 and 8.2% reported in Q1.
• EBITDA came in at ($0.7M) vs. our estimate of $0.2M and ($0.4M) last year due to the impact of losses on derivatives used to manage currency risk.
• Cash operating expenses were 8.7% of sales compared to 18.2% in the prior year, improving as the business scales and overheads are leveraged.
• OGO ended the quarter with $9.3M in cash (incl. restricted cash) and $2.5M in debt, prior to the prepayment of its convertible notes. This compares to debt of $12.5M in Q3/24, showcasing the effective restructuring.
• Organto’s current ratio was 2.0x, reflecting a largely strengthened balance sheet compared to its history of
Underlying
Organto Foods Inc
Provider
Atrium Research Corporation
Atrium Research provides institutional quality issuer paid research on North American public equities using deep fundamental analysis. Our research reports are disseminated through Bloomberg, FactSet, Capital IQ, Reuters and many more, as well as through our social media and email distribution lists.
Nicholas Cortellucci, CFA
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