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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

(ROMJ)

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Neutral 51 (OpenAI - 4o)
Rating:51Neutral
Price Target:
C$0.50
▲(2.04% Upside)
Rubicon Organics' overall score reflects strong revenue growth and strategic positioning, tempered by significant profitability and cash flow challenges. The high P/E ratio suggests overvaluation, while technical indicators point to bearish momentum. The earnings call provided positive insights into future growth, but operational challenges remain.
Positive Factors
Revenue Growth
Strong revenue growth indicates robust demand and successful market expansion, enhancing Rubicon Organics' competitive position in the cannabis industry.
Gross Margin Improvement
Improved gross margins reflect better cost management and pricing power, contributing to long-term profitability and financial health.
Strategic Expansion
Expanding production capacity supports future growth and market share gains, aligning with increasing demand in the cannabis market.
Negative Factors
Profitability Challenges
Ongoing profitability issues could hinder reinvestment and growth, impacting long-term financial sustainability and shareholder returns.
Licensing Delays
Licensing delays can postpone capacity expansion and revenue growth, affecting strategic plans and competitive positioning.
Inventory Management
High inventory levels may lead to cash flow issues, necessitating effective management to prevent financial strain and maintain operational efficiency.

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 shows positive revenue growth but struggles with profitability, as indicated by negative net margins and cash flow challenges. The balance sheet is stable with moderate leverage, but negative return on equity is a concern.
Income Statement
45
Neutral
Rubicon Organics has shown a positive revenue growth rate of 5.52% in the TTM, indicating a recovery trend. However, the net profit margin remains negative at -1.90%, reflecting ongoing profitability challenges. The gross profit margin has decreased from previous years, suggesting pressure on cost management. Despite improvements in EBIT and EBITDA margins, they remain low, indicating limited operational efficiency.
Balance Sheet
50
Neutral
The company's debt-to-equity ratio is relatively low at 0.26, indicating moderate leverage and a stable financial structure. However, the return on equity is negative, highlighting challenges in generating returns for shareholders. The equity ratio is not explicitly calculated, but the balance sheet shows a stable equity base relative to total assets.
Cash Flow
40
Negative
Rubicon Organics faces significant challenges in cash flow management, with a negative free cash flow growth rate of -359% in the TTM. The operating cash flow to net income ratio is positive, suggesting some ability to generate cash from operations, but the free cash flow to net income ratio indicates ongoing cash flow difficulties.
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-3.64M1.85M2.32M-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
Negative
Last Price0.49
Price Trends
50DMA
0.57
Negative
100DMA
0.53
Negative
200DMA
0.49
Positive
Market Momentum
MACD
-0.02
Positive
RSI
39.93
Neutral
STOCH
40.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ROMJ, the sentiment is Negative. The current price of 0.49 is below the 20-day moving average (MA) of 0.53, below the 50-day MA of 0.57, and above the 200-day MA of 0.49, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 39.93 is Neutral, neither overbought nor oversold. The STOCH value of 40.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
73
Outperform
$77.85M5.1922.76%-0.53%
61
Neutral
C$63.13M-20.91%36.50%-306.47%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
51
Neutral
$33.25M183.330.61%34.19%
49
Neutral
C$55.94M-10.63%21.71%18.75%
45
Neutral
$28.86M-18.28-109.32%2.00%80.83%
44
Neutral
C$21.82M-15.75%26.75%61.79%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:ROMJ
Rubicon Organics
0.49
0.11
29.63%
TSE:DB
Decibel Cannabis Company
0.13
0.05
62.50%
TSE:CXXI
C21 Investments
0.48
0.26
120.93%
TSE:VEXT
Vext Science
0.26
0.08
41.67%
TSE:AVCN
Avicanna
0.26
>-0.01
-1.92%
TSE:GWAY
Greenway Greenhouse Cannabis Corp.
0.16
-0.30
-65.22%

Rubicon Organics Corporate Events

Business Operations and StrategyFinancial Disclosures
Rubicon Organics to Release Q3 2025 Financial Results and Expand Production Capacity
Positive
Oct 30, 2025

Rubicon Organics announced it will release its Q3 2025 financial results on November 12, 2025, followed by a conference call on November 13, 2025. The company is expanding its production capacity by over 40% with the acquisition of the Cascadia facility, supporting its growth in the premium cannabis segment. Rubicon’s focus on quality and innovation has driven consistent revenue growth and positive Adjusted EBITDA, solidifying its position as a leader in the market.

The most recent analyst rating on (TSE:ROMJ) stock is a Hold with a C$0.50 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 Reports Strong ESG Performance and Revenue Growth
Positive
Oct 29, 2025

Rubicon Organics has released its fifth annual Environmental, Social, and Governance (ESG) Report, highlighting significant achievements in sustainable cannabis production. The report reveals a 410% increase in net revenue since 2020, with minimal increases in energy and water usage, showcasing the company’s commitment to resource efficiency. Employee engagement and pride are high, reflecting a strong corporate culture. The report underscores Rubicon’s leadership in ESG within the cannabis sector, aiming to be the most trusted house of premium cannabis brands.

The most recent analyst rating on (TSE:ROMJ) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Rubicon Organics stock, see the TSE:ROMJ Stock Forecast page.

Business Operations and Strategy
Rubicon Organics Expands Capacity with New Health Canada License
Positive
Oct 20, 2025

Rubicon Organics has received a Health Canada cultivation license for its Cascadia facility in Hope, BC, which will increase its production capacity by 40% and support revenue and EBITDA growth. This expansion will enable the company to meet demand for its premium products in Canada and explore international market opportunities. The company also renamed its facilities to reflect its West Coast culture and expanded focus. The new capacity is expected to drive growth in both domestic and export markets, reinforcing Rubicon’s position as a leader in the premium cannabis industry.

The most recent analyst rating on (TSE:ROMJ) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Rubicon Organics stock, see the TSE:ROMJ Stock Forecast page.

Business Operations and Strategy
Rubicon Organics to Showcase at Key Investor Events and Engages Research Firm
Positive
Sep 25, 2025

Rubicon Organics announced its participation in two investor events, Small Cap Discoveries in Vancouver and the Planet MicroCap Showcase in Toronto, to present its achievements and future plans. The company has also engaged Atrium Research Corporation for research services, indicating a strategic move to enhance its market presence and investor relations. These developments are expected to strengthen Rubicon’s positioning in the premium cannabis segment and support its growth trajectory.

The most recent analyst rating on (TSE:ROMJ) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Rubicon Organics stock, see the TSE:ROMJ Stock Forecast page.

Rubicon Organics Shines in Q2 2025 Earnings Call
Sep 1, 2025

Rubicon Organics’ Q2 2025 earnings call revealed a strong performance with record-breaking revenue growth, improved gross margins, and positive cash flow. The company is strategically expanding and innovating in its product offerings, which positions it well for future growth. However, challenges such as share erosion in topicals, licensing delays for a new facility, and inventory management remain.

Rubicon Organics Reports Strong Q2 2025 Growth
Aug 19, 2025

Rubicon Organics Inc., a leading Canadian producer of premium organic cannabis, has reported its Q2 2025 financial results, showcasing significant growth and strategic advancements.

Business Operations and StrategyFinancial DisclosuresProduct-Related Announcements
Rubicon Organics Achieves Record Q2 2025 Revenue and Expands Capacity
Positive
Aug 18, 2025

Rubicon Organics reported a record-breaking Q2 2025, with net revenue of $15.0 million, marking a 24% increase from the previous year, and a 30% rise in year-to-date revenue. The company achieved positive Adjusted EBITDA for the fifth consecutive quarter and expanded its production capacity by acquiring the Hope Facility, which will support future growth. The launch of new products, such as the 1964 Supply Co.™ All-in-One resin vapes, and strategic investments are expected to drive sustainable growth, enhancing Rubicon’s market position and offering value to stakeholders.

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 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.

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: Oct 30, 2025