---
title: "Organigram Says Vape Weakness Pressures Margins"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286143126.md"
description: "Organigram Global Inc. reported weak Q2 fiscal 2026 results, with a loss of one cent and sales of $43.59 million, missing expectations. The decline in vape and infused pre-roll sales pressured margins, leading to an adjusted gross margin of 31%. However, the company anticipates improvement following its acquisition of Sanity Group, raising its fiscal 2026 revenue outlook to over $350 million. Despite a 14.12% drop in share price, CEO James Yamanaka expressed optimism about operational changes stabilizing performance."
datetime: "2026-05-12T18:30:36.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286143126.md)
  - [en](https://longbridge.com/en/news/286143126.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286143126.md)
---

# Organigram Says Vape Weakness Pressures Margins

**Organigram Global Inc.** (NASDAQ:OGI) reported weaker second-quarter fiscal 2026 results as declining vape and infused pre-roll sales weighed on revenue and profitability.

Though the Canadian cannabis producer said operational changes and its recent acquisition of Germany-based Sanity Group position the company for stronger performance in the second half of the year.

**• Organigram Global shares are sliding. Why are OGI shares down?**

## **Organigram Q2 Revenue Falls As Vape Sales And Margins Weaken**

The company reported a second-quarter loss of one cent, with sales of $43.59 million, missing the consensus of $52.06 million.

Adjusted EBITDA fell 82% to $0.9 million.

CEO **James Yamanaka** said the quarter reflected underperformance in vapes and temporary production issues in infused pre-rolls, alongside slower industry growth.

"We acted quickly to address these issues, and the operational changes and product enhancements we have implemented are already beginning to stabilize performance," Yamanaka said.

## **Margin Pressure and Net Loss Impact Results**

Organigram reported an adjusted gross margin of $18.4 million, or 31% of net revenue, down from 33% a year earlier. The decline was tied to changes in product mix and higher product returns.

## **Sanity Group Deal Expected To Support Growth**

Organigram completed its acquisition of Germany-based **Sanity Group GmbH**, which it expects will generate roughly 25 million euros in average quarterly revenue over the next year.

CFO **Greg Guyatt** said the financial impact from earlier operational and competitive challenges was "largely realized" in the first half of fiscal 2026.

## **Organigram Raises Fiscal 2026 Revenue Outlook**

Following the Sanity Group acquisition, Organigram raised its fiscal 2026 guidance and now expects net revenue to exceed $350 million, up from its prior forecast of more than $300 million. Analysts expect sales of $341.45 million.

The company also expects adjusted gross margin and adjusted EBITDA to exceed fiscal 2025 levels, while projecting free cash flow to be approximately break-even.

**OGI Price Action:** Organigram Global shares were down 14.12% at $1.13 at the time of publication on Tuesday, according to Benzinga Pro. Over the past month, OGI has declined about 20.2% versus a 8.3% rise in the S&P 500 and is down roughly 33% year-to-date compared to the index’s 7% gain.

**Read Also: AI Infrastructure Frenzy Sends Data Center CPU Market Into Overdrive**

I_mage via Shutterstock_

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