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Rubicon Organics Inc (TSE:ROMJ)
:ROMJ
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Rubicon Organics (ROMJ) AI Stock Analysis

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TSE:ROMJ

Rubicon Organics

(OTC:ROMJ)

Rating:60Neutral
Price Target:
C$0.50
▼(-12.28% Downside)
Rubicon Organics' strong earnings performance and technical momentum are offset by significant valuation concerns and ongoing profitability challenges. The company's strategic growth initiatives and market positioning are positive, but high P/E and cash flow issues warrant caution.
Positive Factors
Earnings
Rubicon’s second quarter results were ahead of expectations with both revenue and EBITDA exceeding forecast, driven by successful new product launches.
Market Position
Rubicon’s topical brand Wildflower held the number two position in Canada with a market share of 28.3% for the quarter, up from the prior quarter.
Negative Factors
Operating Costs
Increased operating costs will impact EBITDA this year ahead of any revenue contribution.
Short-term EBITDA Pressure
Investments are expected to pressure EBITDA on a short-term basis.

Rubicon Organics (ROMJ) vs. iShares MSCI Canada ETF (EWC)

Rubicon Organics Business Overview & Revenue Model

Company DescriptionRubicon Organics Inc. produces and sells organic cannabis for the recreational and medical-use markets in Canada. The company processes and sells organic cannabis under its wholly owned and other licensed brands. Rubicon Organics Inc. was incorporated in 2015 and is headquartered in Vancouver, Canada.
How the Company Makes MoneyRubicon Organics generates revenue primarily through the sale of its cannabis products to licensed retailers and distributors across Canada. The company operates on a direct-to-consumer model, as well as through wholesale partnerships, allowing it to reach a broad customer base. Key revenue streams include sales of dried flower, cannabis oils, and pre-rolls, with a focus on premium organic offerings that command higher price points in the market. Additionally, Rubicon Organics may engage in strategic partnerships with other cannabis brands and distributors, enhancing its market presence and distribution capabilities, which contribute to its overall earnings. The company's commitment to organic cultivation not only appeals to health-conscious consumers but also positions it favorably within the growing segment of the cannabis market that prioritizes sustainability.

Rubicon Organics Earnings Call Summary

Earnings Call Date:Aug 18, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Positive
Rubicon Organics demonstrated strong performance in Q2 2025 with record-breaking revenue growth, improved gross margins, and positive cash flow. Strategic expansion and innovation in product offerings indicate a solid position for future growth. However, the company faces challenges with share erosion in topicals, licensing delays for a new facility, and inventory management.
Q2-2025 Updates
Positive Updates
Record-Breaking Revenue and Growth
Rubicon Organics delivered a record net revenue of $15 million in Q2 2025, marking the highest ever for a single quarter, up 24% year-over-year and 21% sequentially.
Strong Performance Across Key Segments
The 1964 brand saw strong growth led by the pre-roll segment. The 510 live resin line, launched in Q2 2024, continued to gain momentum. Simply Bare Organic also delivered growth, driven by strong pre-roll sales.
Gross Margin Improvement
Gross profit before fair value adjustments was $5.1 million, up 40% from Q2 2024, with gross margin improving to 34% compared to 30% a year ago.
Positive Cash Flow and Financial Health
The company generated $800,000 in cash from operating activities in Q2 2025, compared to an operating cash outflow of $300,000 in Q2 2024. The quarter closed with $7.3 million in cash and a solid working capital position of $18.7 million.
Strategic Expansion with New Facility
The acquisition of the new facility in Hope, BC, is expected to increase production capacity by over 40%, positioning Rubicon Organics for long-term growth.
Innovation in Product Offerings
Launched BC Organic Sunset Runtz and the first all-in-one resin vape under the Comatose strain, contributing to product diversity and growth.
Strong Brand Positioning in Market
Rubicon holds the #1 position in premium edibles and continues to lead in the topical category with market's top-selling SKU.
Negative Updates
Share Erosion in Topicals
Experienced some share erosion in the topical category with competitors entering the market with more SKUs at lower price points.
Challenges in Licensing for New Facility
Awaiting Health Canada licensing for the new facility, which could delay production start and revenue generation until 2026.
Inventory Buildup
Inventory levels increased, partly due to anticipation of product launches, requiring careful management to avoid cash flow constraints.
Company Guidance
During Rubicon Organics' Q2 2025 earnings call, the company reported record net revenue of $15 million, marking a 24% increase year-over-year and a 21% sequential rise. Gross profit reached $5.9 million with a gross margin of 34%, up from 30% the previous year. Adjusted EBITDA was $1.4 million, contributing to a year-to-date total of $2.1 million. The company's growth was driven by its expanding 1964 brand, particularly in the pre-roll and vape segments, which saw a significant increase in SKUs and captured over 15% of the market. Rubicon also maintained a strong presence in premium edibles and topicals, holding the #1 position in premium edibles and #2 in topicals. The company completed a $4.5 million private placement and finalized the acquisition of its Hope facility to increase production capacity by 40%, positioning itself for further growth amid a global cannabis supply shortage. Rubicon closed the quarter with $7.3 million in cash and $18.7 million in working capital, supported by disciplined cost control and a prudent capital structure.

Rubicon Organics Financial Statement Overview

Summary
Rubicon Organics has shown significant revenue growth and improved operating efficiency, with better margins and positive cash flow trends. However, the company remains unprofitable, and managing cash flows and achieving profitability are critical for sustained success.
Income Statement
58
Neutral
Rubicon Organics has demonstrated significant revenue growth over the years, increasing from $9.39M in 2020 to $52.18M in TTM 2025, showcasing a progressive trajectory. However, the company has consistently reported net losses, though the net loss has decreased over time. The gross profit margin for TTM 2025 is approximately 21.21%, indicating some cost efficiency. The EBITDA margin has improved to 6.35% in TTM 2025, and EBIT turned positive, highlighting operational improvements.
Balance Sheet
62
Positive
Rubicon Organics maintains a strong equity position with an equity ratio around 67.8% for TTM 2025. The debt-to-equity ratio is relatively low at 0.26, indicating low leverage and a stable financial structure. Although the return on equity is negative due to net losses, the company's equity base remains robust, providing a cushion for future growth.
Cash Flow
54
Neutral
Rubicon Organics has shown improvement in operating cash flow, turning positive in 2023 and sustaining it through TTM 2025. The free cash flow has also improved, although it remains modest at $1.40M for TTM 2025. The operating cash flow to net income ratio suggests better cash efficiency, but the company still faces challenges in achieving consistent free cash flow growth.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue55.06M48.70M40.12M35.52M22.61M9.39M
Gross Profit19.12M15.42M13.14M13.81M1.51M-663.96K
EBITDA4.43M1.86M1.95M217.00K-10.87M-10.37M
Net Income235.28K-2.56M-1.82M-3.86M-14.52M-14.98M
Balance Sheet
Total Assets62.03M56.61M54.89M56.11M54.84M51.07M
Cash, Cash Equivalents and Short-Term Investments7.28M9.86M10.91M8.29M11.58M12.14M
Total Debt9.51M9.89M10.40M10.22M9.82M13.99M
Total Liabilities19.19M19.21M17.00M17.77M15.94M22.23M
Stockholders Equity42.84M37.40M37.89M38.33M38.90M28.84M
Cash Flow
Free Cash Flow-3.64M1.85M2.47M-2.50M-15.94M-20.30M
Operating Cash Flow3.02M3.40M5.05M1.95M-10.44M-14.31M
Investing Cash Flow-6.66M-1.55M-2.73M-4.45M-5.50M3.08M
Financing Cash Flow1.42M-1.77M-804.01K-838.56K15.30M21.26M

Rubicon Organics Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.57
Price Trends
50DMA
0.52
Positive
100DMA
0.48
Positive
200DMA
0.45
Positive
Market Momentum
MACD
0.03
Positive
RSI
49.29
Neutral
STOCH
19.46
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ROMJ, the sentiment is Neutral. The current price of 0.57 is below the 20-day moving average (MA) of 0.60, above the 50-day MA of 0.52, and above the 200-day MA of 0.45, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 49.29 is Neutral, neither overbought nor oversold. The STOCH value of 19.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:ROMJ.

Rubicon Organics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
$39.63M218.520.61%34.19%
51
Neutral
$7.95B-0.38-43.43%2.22%22.30%-1.83%
$52.11M4.8722.76%
$39.25M-10.63%
$54.71M-20.91%
$22.99M-109.32%
44
Neutral
C$29.03M-15.75%26.75%61.79%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:ROMJ
Rubicon Organics
0.57
0.09
18.75%
DBCCF
Decibel Cannabis Company
0.09
0.04
80.00%
CXXIF
C21 Investments
0.34
0.09
36.00%
VEXTF
Vext Science
0.22
0.03
15.79%
AVCNF
Avicanna
0.19
-0.13
-40.63%
TSE:GWAY
Greenway Greenhouse Cannabis Corp.
0.21
-0.03
-12.50%

Rubicon Organics Corporate Events

Business Operations and StrategyFinancial Disclosures
Rubicon Organics to Announce Q2 2025 Financial Results and Host Conference Call
Positive
Aug 8, 2025

Rubicon Organics announced it will release its Q2 2025 financial results on August 18, 2025, and will host a conference call to discuss the results. The company continues to focus on premium quality and operational execution, which has led to consistent revenue growth and positive Adjusted EBITDA. The expansion of production capacity and strong brand equity position Rubicon Organics as a leader in the premium cannabis segment, with significant growth potential in the evolving Canadian market and increasing global demand.

The most recent analyst rating on (TSE:ROMJ) stock is a Buy with a C$1.10 price target. To see the full list of analyst forecasts on Rubicon Organics stock, see the TSE:ROMJ Stock Forecast page.

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Rubicon Organics Announces New Board Chair and Meeting Results
Positive
Jul 31, 2025

Rubicon Organics announced the results of its Annual General and Special Meeting, where shareholders approved all proposed matters, including setting the number of directors at eight and electing new board members. The company appointed Doris Bitz as the new Chair of the Board, succeeding Len Boggio, who will now lead the Nomination and Governance Committee. The meeting also saw the approval of an amendment to the Omnibus Equity Incentive Plan, which aims to enhance the company’s growth and shareholder value. These developments are expected to strengthen Rubicon Organics’ governance and strategic direction as it seeks to expand its market presence.

The most recent analyst rating on (TSE:ROMJ) stock is a Buy with a C$1.10 price target. To see the full list of analyst forecasts on Rubicon Organics stock, see the TSE:ROMJ Stock Forecast page.

Shareholder MeetingsBusiness Operations and Strategy
Rubicon Organics Announces Annual General and Special Meeting
Neutral
Jul 10, 2025

Rubicon Organics has announced its Annual General and Special Meeting to be held on July 31, 2025, in Vancouver. The meeting will cover several key agenda items, including the election of directors, appointment of auditors, and approval of an amendment to the company’s Omnibus Equity Incentive Plan. This meeting is significant for stakeholders as it addresses governance and strategic decisions that could impact the company’s future operations and market positioning.

The most recent analyst rating on (TSE:ROMJ) stock is a Buy with a C$1.10 price target. To see the full list of analyst forecasts on Rubicon Organics stock, see the TSE:ROMJ Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Rubicon Organics Expands Product Line with New All-in-One Resin Vapes
Positive
Jul 2, 2025

Rubicon Organics has launched its new 1964 Supply Co.™ All-in-One Full Spectrum Extract Resin Vapes in Canada, expanding its premium cannabis product offerings. This launch marks a strategic step in Rubicon’s growth plan, aiming to attract consumers from the legacy market by offering high-quality, full-spectrum products at competitive prices, setting a new standard in a segment dominated by distillate-based products.

The most recent analyst rating on (TSE:ROMJ) stock is a Buy with a C$1.10 price target. To see the full list of analyst forecasts on Rubicon Organics stock, see the TSE:ROMJ Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Rubicon Organics Expands Premium Cannabis Production with New Facility Acquisition
Positive
Jun 5, 2025

Rubicon Organics has acquired a 47,500 sq. ft. indoor cultivation facility in Hope, British Columbia, marking a significant step in its strategy to expand premium cannabis production. This acquisition is expected to increase the company’s production capacity by over 40%, supporting its growth in both domestic and international markets. The facility is anticipated to reach full production capacity by the end of 2026, with revenue contributions expected in the first half of 2026. This move strengthens Rubicon’s leadership in the premium cannabis segment and aligns with its focus on innovation and international expansion.

The most recent analyst rating on (TSE:ROMJ) stock is a Buy with a C$1.10 price target. To see the full list of analyst forecasts on Rubicon Organics stock, see the TSE:ROMJ Stock Forecast page.

Private Placements and FinancingM&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Rubicon Organics Reports Strong Q1 2025 Growth and Strategic Expansion
Positive
May 28, 2025

Rubicon Organics reported a strong Q1 2025 with a 39.2% increase in net revenue to $12.4 million and a positive Adjusted EBITDA of $0.7 million. The company removed conditions for the acquisition of the Hope Facility, which will expand production capacity by 40%, and completed a $4.5 million private placement to support future growth. With a national market share in various cannabis categories and international certification, Rubicon is well-positioned for long-term growth and expansion in both domestic and export markets.

The most recent analyst rating on (TSE:ROMJ) stock is a Buy with a C$1.10 price target. To see the full list of analyst forecasts on Rubicon Organics stock, see the TSE:ROMJ Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Rubicon Organics Advances Growth with Hope Facility Acquisition
Positive
May 22, 2025

Rubicon Organics has cleared all conditions for acquiring the Hope Facility, a 47,500 square foot indoor cultivation site in Hope, British Columbia, from Medipharm Labs Inc. This acquisition is expected to significantly enhance Rubicon Organics’ production capacity, enabling the company to meet increasing demand for its premium cannabis products and support its growth strategy. The company anticipates closing the acquisition in the second quarter and expects the first harvests by the end of 2025, with revenue realization in early 2026. This strategic move is seen as pivotal for Rubicon Organics in accelerating innovation and driving long-term shareholder value.

The most recent analyst rating on (TSE:ROMJ) stock is a Buy with a C$1.10 price target. To see the full list of analyst forecasts on Rubicon Organics stock, see the TSE:ROMJ Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Rubicon Organics to Announce Q1 2025 Financial Results
Neutral
May 16, 2025

Rubicon Organics Inc. announced it will release its Q1 2025 financial results on May 27, 2025, followed by a conference call on May 28, 2025. This announcement is part of Rubicon’s strategy to maintain transparency with stakeholders and highlights its commitment to achieving industry-leading profitability through its premium cannabis offerings.

The most recent analyst rating on (TSE:ROMJ) stock is a Buy with a C$1.10 price target. To see the full list of analyst forecasts on Rubicon Organics stock, see the TSE:ROMJ Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Rubicon Organics Appoints Glen Ibbott as Interim CFO Amid Strategic Expansion
Neutral
May 15, 2025

Rubicon Organics has appointed Glen Ibbott as its Interim CFO, following the departure of Janis Risbin from her full-time role. Ibbott, a seasoned financial executive with extensive experience in the cannabis industry, previously served as CFO at Aurora Cannabis, where he contributed to the company’s rapid growth and international expansion. His appointment comes at a strategic time for Rubicon Organics as it scales new capacity and explores new markets for its premium cannabis brands. The company is also initiating a search for a permanent CFO, emphasizing the need for a leader with deep financial expertise and a strong understanding of the cannabis industry.

The most recent analyst rating on (TSE:ROMJ) stock is a Buy with a C$1.10 price target. To see the full list of analyst forecasts on Rubicon Organics stock, see the TSE:ROMJ Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 03, 2025