Rubicon Organics Inc (TSE:ROMJ)
:ROMJ
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Rubicon Organics
(ROMJ)
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Rating:65Neutral
Price Target:
C$0.59
▲(25.74% Upside)
Action:ReiteratedDate:03/25/26
The score is driven primarily by improving operating performance and a strengthened balance sheet, tempered by weak current cash flow conversion (negative TTM operating and free cash flow) and only modest technical momentum. Valuation is a notable positive due to the very low P/E.
Positive Factors
Multi-year revenue growth and scale
Sustained revenue expansion from single-digit millions to ~59.5M TTM indicates the company has scaled operations and increased market penetration in the Canadian adult-use channel. This larger revenue base supports operating leverage, stronger supplier/distributor relationships, and improved strategic flexibility over the medium term.
Negative Factors
Weak cash generation and negative free cash flow
Negative operating and free cash flow despite reported net income indicates earnings quality and working-capital or capex pressures. Persistent cash shortfalls raise funding risk, may force external financing or constrain growth investments, and reduce ability to convert accounting profits into durable cash returns to stakeholders.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi-year revenue growth and scale
Sustained revenue expansion from single-digit millions to ~59.5M TTM indicates the company has scaled operations and increased market penetration in the Canadian adult-use channel. This larger revenue base supports operating leverage, stronger supplier/distributor relationships, and improved strategic flexibility over the medium term.
Read all positive factors
Rubicon Organics (ROMJ) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$36.95M
Dividend YieldN/A
Average Volume (3M)65.53K
Price to Earnings (P/E)29.8
Beta (1Y)0.01
Revenue Growth22.08%
EPS GrowthN/A
CountryCA
Employees208
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.03
Shares Outstanding67,175,770
10 Day Avg. Volume72,944
30 Day Avg. Volume65,526
Financial Highlights & Ratios
PEG Ratio-0.22
Price to Book (P/B)0.71
Price to Sales (P/S)0.53
P/FCF Ratio-2.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$1.15Price Target Upside144.68% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.07
Revenue Forecast (FY)C$72.09M
Rubicon Organics Business Overview & Revenue Model
Company Description
Rubicon 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 incorpor...
How the Company Makes Money
Rubicon Organics makes money primarily by selling regulated cannabis products into the Canadian adult-use (recreational) market. Its core revenue stream is wholesale and/or direct-to-board sales of packaged cannabis (notably dried flower, and othe...
Rubicon Organics Earnings Call Summary
Earnings Call Date:Aug 18, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Jun 03, 2026
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.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.
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.
Read all updates
Q2-2025 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
64
Positive
Balance Sheet
78
Positive
Cash Flow
41
Neutral
| Breakdown | Dec 2025 | Mar 2025 | Dec 2023 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 59.45M | 48.70M | 40.12M | 35.52M | 22.61M |
| Gross Profit | 22.14M | 15.42M | 13.14M | 13.81M | 1.51M |
| EBITDA | 5.12M | 1.86M | 2.40M | 217.00K | -10.87M |
| Net Income | 1.05M | -2.56M | -1.82M | -3.86M | -14.52M |
Balance Sheet | |||||
| Total Assets | 66.89M | 56.61M | 54.89M | 56.11M | 54.84M |
| Cash, Cash Equivalents and Short-Term Investments | 3.99M | 9.86M | 10.91M | 8.29M | 11.58M |
| Total Debt | 12.42M | 9.89M | 10.40M | 10.22M | 9.82M |
| Total Liabilities | 22.84M | 19.21M | 17.00M | 17.77M | 15.94M |
| Stockholders Equity | 44.06M | 37.40M | 37.89M | 38.33M | 38.90M |
Cash Flow | |||||
| Free Cash Flow | -12.04M | 1.85M | 2.32M | -2.50M | -15.94M |
| Operating Cash Flow | -3.63M | 3.40M | 5.05M | 1.95M | -10.44M |
| Investing Cash Flow | -8.42M | -1.55M | -2.73M | -4.45M | -5.50M |
| Financing Cash Flow | 6.25M | -1.77M | -804.01K | -838.56K | 15.30M |
Rubicon Organics Technical Analysis
Positive
0.47
Price Trends
0.49
Positive
0.48
Positive
0.51
Positive
Market Momentum
0.02
Negative
71.31
Negative
79.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ROMJ, the sentiment is Positive. The current price of 0.47 is below the 20-day moving average (MA) of 0.51, below the 50-day MA of 0.49, and below the 200-day MA of 0.51, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 71.31 is Negative, neither overbought nor oversold. The STOCH value of 79.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ROMJ.
Rubicon Organics Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | C$36.95M | 29.79 | 7.78% | ― | 22.08% | ― | |
61 Neutral | C$9.29M | 8.94 | 11.57% | ― | -6.27% | 61.54% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | C$29.24M | -19.43 | -71.80% | ― | -7.53% | 41.77% | |
49 Neutral | C$27.62M | -3.31 | -19.10% | ― | 7.54% | 24.81% | |
47 Neutral | C$18.87M | -7.21 | -68.32% | ― | 0.08% | 30.81% | |
45 Neutral | C$6.92M | 5.19 | ― | ― | -25.05% | 67.74% |
* Healthcare Sector Average
TSE:ROMJ
Rubicon Organics
0.55
0.05
10.00%
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0.07
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TSE:PCLO
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0.06
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10.00%
TSE:AVCN
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0.15
-0.08
-34.78%
TSE:INNO
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6.50
-4.55
-41.18%
Rubicon Organics Corporate Events
Business Operations and StrategyProduct-Related Announcements
Rubicon Organics’ 1964 Supply Co. Enters U.K. Medical Cannabis Market via 4C LABS
Positive
Apr 13, 2026
Rubicon Organics has launched its award-winning 1964 Supply Co. medical cannabis brand in the United Kingdom through a distribution partnership with 4C LABS, marking the brand’s first international route-to-market. The move expands the compa...
Business Operations and Strategy
Rubicon Organics Targets Global Premium Cannabis Growth With European Conference Push
Positive
Apr 9, 2026
Rubicon Organics, a leading Canadian producer of certified organic premium cannabis, is expanding its footprint through a house of high-performing brands and a vertically integrated platform anchored by two cultivation facilities in British Columb...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Rubicon Organics Posts Record 2025 Results and Scales Up Premium Cannabis Capacity
Positive
Mar 24, 2026
Rubicon Organics reported record 2025 net revenue of $59.5 million, up 22% year over year, with adjusted EBITDA rising to $5.0 million and operations turning from a loss to a $1.8 million profit. The company strengthened its balance sheet with new...
Business Operations and StrategyFinancial Disclosures
Rubicon Organics Delivers Record 2025 Results and Ramps Up Cascadia Facility
Positive
Mar 24, 2026
Rubicon Organics reported record 2025 net revenue of $59.5 million, up 22% from 2024, with gross profit before fair value adjustments rising 27% to $19.5 million and adjusted EBITDA reaching $5.0 million. The company generated $1.8 million in inco...
Business Operations and StrategyFinancial Disclosures
Rubicon Organics Sets Date to Report Q4 2025 Results Amid Capacity Expansion
Positive
Mar 10, 2026
Rubicon Organics will release its financial results for the fourth quarter and full year ended December 31, 2025 after markets close on March 23, 2026, followed by a conference call and webcast the next day to discuss its performance. The timing o...
Business Operations and Strategy
Rubicon Organics Boosts Premium Cannabis Output with Cascadia Facility Launch
Positive
Feb 19, 2026
Rubicon Organics has completed the first harvest at its new Cascadia facility in Hope, B.C., marking a key operational milestone in expanding its premium cannabis production base. The 47,500-square-foot indoor site is fully planted and is estimate...
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.