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• ROMJ reported Q4 and 2025 financial results, including 2025 revenue of $59.5M (+22% YoY) vs. our estimate of $58.8M and Q4 revenue of $16.5M (+16% YoY) vs. our estimate of $15.8M.
• Profitability was more muted, with adjusted EBITDA of $5.0M for the year vs. our $5.6M and $1.2M for the quarter vs. our $1.7M. Management guided for improved margins for H2/26.
• Management highlighted that demand for its flower consistently exceeds its supply, setting up 2026 for Cascadia’s ramp-up and international sales.
Yesterday, after market close, Rubicon Organics Inc. (ROMJ:TSXV, ROMJF:OTCQX) reported its Q4 and 2025 financials, including revenue that beat our expectations and adjusted EBITDA that missed our expectations. This was largely due to start-up costs from Cascadia, which will be the engine for future growth. Q4 marked another solid quarter of growth, with the topline increasing 16% YoY and strong market share gains in the premium category. We remain bullish on 2026, given the various growth initiatives and catalysts, emphasized by management’s strong tone on the conference call. We are maintaining our BUY rating and $1.00/share target price on Rubicon Organics.
Financial Highlights
• 2025 revenue was $59.5M (+22% YoY), beating our $58.8M, while Q4 revenue was $16.5M (+16% YoY) vs. our $15.8M. Product sales were $76.2M (+20% YoY) for 2025 and $21.1M (+15% YoY) for Q4. We find these growth rates highly impressive, given the BC workers’ strike that impacted most of October.
• ROMJ made solid progress from a market share perspective in Q4, gaining 0.8% market share across all categories within premium, including +3.1% market share gains in premium pre-rolls to 10.4% (See Figure 3).
• Gross margin for the year (before fair value adjustments) came in at 33%, consistent with our 33% forecast. Gross margin for the quarter was 32% compared to our 34% estimate, which management attributed to $0.8M in Cascadia start-up costs; without this, Q4 gross margin would have been 36%.
• 2025 adjusted EBITDA came in at $5.0M (+25% YoY), vs. our estimate of $5.6M and the $4.0M reported last year, representing an 8% margin (vs. 9% expected). Adjusted EBITDA for the quarter was $1.2M (7% margin) vs. $1.7M expected.
• Salaries and wages represented 17% and 19% of revenue for the year and quarter, respectively (both above average). G&A was 8% of revenue for 2025 and 7% for Q4, in line with previous levels.
• 2025 net income totalled $1.1M vs. our estimate of $4.1M, and Q4 net income was ($2.2M) for the quarter vs. our $0.8M estimate. 2025 OCF came in at ($3.0M) after changes in WC, or $4.0M before changes in WC.
• Rubicon ended the year with $4.0M in cash and $12.5M in debt.
ROMJ: Solid Q4 Financial Results & Strategic Outlook
What you need to know:• ROMJ reported Q4 and 2025 financial results, including 2025 revenue of $59.5M (+22% YoY) vs. our estimate of $58.8M and Q4 revenue of $16.5M (+16% YoY) vs. our estimate of $15.8M.
• Profitability was more muted, with adjusted EBITDA of $5.0M for the year vs. our $5.6M and $1.2M for the quarter vs. our $1.7M. Management guided for improved margins for H2/26.
• Management highlighted that demand for its flower consistently exceeds its supply, setting up 2026 for Cascadia’s ramp-up and international sales.
Yesterday, after market close, Rubicon Organics Inc. (ROMJ:TSXV, ROMJF:OTCQX) reported its Q4 and 2025 financials, including revenue that beat our expectations and adjusted EBITDA that missed our expectations. This was largely due to start-up costs from Cascadia, which will be the engine for future growth. Q4 marked another solid quarter of growth, with the topline increasing 16% YoY and strong market share gains in the premium category. We remain bullish on 2026, given the various growth initiatives and catalysts, emphasized by management’s strong tone on the conference call. We are maintaining our BUY rating and $1.00/share target price on Rubicon Organics.
Financial Highlights
• 2025 revenue was $59.5M (+22% YoY), beating our $58.8M, while Q4 revenue was $16.5M (+16% YoY) vs. our $15.8M. Product sales were $76.2M (+20% YoY) for 2025 and $21.1M (+15% YoY) for Q4. We find these growth rates highly impressive, given the BC workers’ strike that impacted most of October.
• ROMJ made solid progress from a market share perspective in Q4, gaining 0.8% market share across all categories within premium, including +3.1% market share gains in premium pre-rolls to 10.4% (See Figure 3).
• Gross margin for the year (before fair value adjustments) came in at 33%, consistent with our 33% forecast. Gross margin for the quarter was 32% compared to our 34% estimate, which management attributed to $0.8M in Cascadia start-up costs; without this, Q4 gross margin would have been 36%.
• 2025 adjusted EBITDA came in at $5.0M (+25% YoY), vs. our estimate of $5.6M and the $4.0M reported last year, representing an 8% margin (vs. 9% expected). Adjusted EBITDA for the quarter was $1.2M (7% margin) vs. $1.7M expected.
• Salaries and wages represented 17% and 19% of revenue for the year and quarter, respectively (both above average). G&A was 8% of revenue for 2025 and 7% for Q4, in line with previous levels.
• 2025 net income totalled $1.1M vs. our estimate of $4.1M, and Q4 net income was ($2.2M) for the quarter vs. our $0.8M estimate. 2025 OCF came in at ($3.0M) after changes in WC, or $4.0M before changes in WC.
• Rubicon ended the year with $4.0M in cash and $12.5M in debt.
Underlying
Rubicon Organics
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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