Canada's Rubicon Organics Q1 revenue rises, sees H2 adjusted EBITDA improvement

Rubicon Organics

14/05/2026 12:45

Overview

Canada premium cannabis producer's Q1 net revenue grew 11% yr/yr but missed analyst expectations

Adjusted EBITDA for Q1 swung to a loss, impacted by Cascadia ramp-up and B.C. strike

Company expanded addressable market with 1964 brand launch in U.K. medical cannabis market

Outlook

Company expects improvements in gross margin, Adjusted EBITDA, and cash flow in H2 2026

Rubicon forecasts growth in net revenue and Adjusted EBITDA for full-year 2026

Company anticipates continued softer margins and EBITDA through H1 2026 due to Cascadia ramp-up

Result Drivers

CASCADIA RAMP-UP COSTS - Co said gross margin and Adjusted EBITDA declines were mainly due to costs from scaling up the Cascadia facility before it generates revenue

B.C. STRIKE IMPACT - Co said lingering effects of a strike at the B.C. provincial distributor affected results early in the year

FLOWER AND PRE-ROLL SALES - Revenue growth was driven by increased sales in flower and pre-rolls from 1964 and Simply Bare brands

Company press release: ID:nGNX5vXpgL

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
C$13.7 mln
C$14.32 mln (3 Analysts)
Q1 Adjusted EBITDA
-C$584,000


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the healthcare facilities & services peer group is "buy"

Wall Street's median 12-month price target for Rubicon Organics Inc is C$1.15, about 132.3% above its May 13 closing price of C$0.50

The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 6 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)