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

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TSE:ROMJ

Rubicon Organics

(OTC:ROMJ)

Rating:56Neutral
Price Target:
C$0.50
▲(13.64%Upside)
The overall score reflects Rubicon Organics' strong revenue growth and strategic expansions, but is tempered by ongoing net losses and market valuation concerns. Financial performance and technical analysis weigh significantly, with earnings call insights providing a positive, yet cautious outlook.
Positive Factors
Acquisition
The Hope facility acquisition is expected to close soon, with plans to secure the license and begin capital improvements.
Financial Performance
Next year is shaping up to be a very strong year with strong revenue and EBITDA growth with the addition of the Hope facility.
Revenue Growth
Rubicon reported Q1/25 revenue of $12.4M, an increase of 39.2% year-over-year.
Negative Factors
EBITDA Pressure
Investments are expected to pressure EBITDA on a short-term basis.
Operating Costs
Increased operating costs will impact EBITDA this year ahead of any revenue contribution.

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

Rubicon Organics Business Overview & Revenue Model

Company DescriptionRubicon Organics Inc. (ROMJ) is a Canadian-based company specializing in the production and distribution of premium organic cannabis products. The company focuses on cultivating high-quality, certified organic cannabis at its state-of-the-art hybrid greenhouse facility in Delta, British Columbia. Rubicon Organics' core product offerings include a variety of organic cannabis strains and derivative products, catering to both the recreational and medical cannabis markets.
How the Company Makes MoneyRubicon Organics generates revenue primarily through the sale of its premium organic cannabis products. The company cultivates and processes its cannabis plants in-house, ensuring quality control and organic certification, which allows them to command premium pricing in the market. Revenue streams include wholesale distribution to licensed retailers, direct-to-consumer sales through its brand portfolio, and potential licensing agreements. Rubicon Organics also benefits from strategic partnerships and collaborations that enhance its product offerings and expand its market reach. Additionally, the company's focus on organic products appeals to a growing segment of health-conscious consumers, contributing to its earnings.

Rubicon Organics Earnings Call Summary

Earnings Call Date:May 27, 2025
(Q1-2025)
|
% Change Since: 10.00%|
Next Earnings Date:Aug 14, 2025
Earnings Call Sentiment Positive
Rubicon Organics reported strong revenue growth and positive adjusted EBITDA, supported by successful product launches and strategic expansions. However, the company faces operational cost challenges and market share pressures in certain segments. Overall, the positive developments slightly outweigh the challenges faced.
Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Rubicon Organics achieved net revenue of $12.4 million in Q1 2025, a 39% increase year-over-year, driven by strong performance in Canada's largest provinces.
Positive Adjusted EBITDA
The company reported positive adjusted EBITDA of $700,000, marking a $1.1 million improvement compared to the same period in 2024.
Expansion and Strategic Acquisitions
Rubicon Organics entered into an agreement to acquire a new facility in Hope, BC, expanding annual production capacity by over 40% to 15,500 kilos.
Successful Product Launches
Introduction of new products like BC Organic Pink Drip and Homestead Edibles, and the expansion of the vape line to eight SKUs, capturing nearly 15% of the segment.
Improved Gross Margin
Gross margin improved to 31% in Q1 2025, up from 25% in the same quarter last year, indicating operational efficiencies.
Strong Market Positioning
Rubicon maintains a market leader position in the Topical category and continues to expand its presence in premium edibles and vapes.
Negative Updates
Operational Cost Challenges
Significant start-up operational costs of over $3 million associated with the Hope facility, with revenues not expected until 2026.
Market Share Loss in Topicals
Despite market leadership, Rubicon experienced some share loss in the Topical category due to competitors entering with lower-priced SKUs.
Capital Market Volatility
Despite a successful upsized offering, the company faced significant volatility in the capital markets.
Company Guidance
During the Rubicon Organics Q1 2025 earnings call, key financial metrics were highlighted, including a 39% year-over-year increase in net revenue to $12.4 million and a positive adjusted EBITDA of $700,000, marking a $1.1 million improvement from the same period in 2024. The company's gross profit before fair value adjustments was $3.8 million, a 72% improvement from Q1 2024, with a gross margin increase from 25% to 31%. Additionally, Rubicon secured a non-brokered life offering, upsized by 50% to $4.5 million, and expanded its annual production capacity by over 40% to 15,500 kilos through the acquisition of a new facility in Hope, BC. The company's revenue growth was fueled by strong performances in Canada's largest provinces, notably with its resin vape line capturing nearly 15% of the segment. Rubicon's strategy involves expanding its product offerings, optimizing its brand strength, and exploring international markets, with a focus on long-term growth and financial health.

Rubicon Organics Financial Statement Overview

Summary
Rubicon Organics shows significant revenue growth and improved operational efficiency with positive cash flow trends. However, consistent net losses and modest free cash flow indicate ongoing profitability challenges.
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue48.70M40.12M35.52M22.61M9.39M
Gross Profit15.42M13.14M13.81M1.51M-663.96K
EBITDA1.86M1.95M217.00K-10.87M-10.37M
Net Income-2.56M-1.82M-3.86M-14.52M-14.98M
Balance Sheet
Total Assets56.61M54.89M56.11M54.84M51.07M
Cash, Cash Equivalents and Short-Term Investments9.86M10.91M8.29M11.58M12.14M
Total Debt9.89M10.40M10.22M9.82M13.99M
Total Liabilities19.21M17.00M17.77M15.94M22.23M
Stockholders Equity37.40M37.89M38.33M38.90M28.84M
Cash Flow
Free Cash Flow1.85M2.47M-2.50M-15.94M-20.30M
Operating Cash Flow3.40M5.05M1.95M-10.44M-14.31M
Investing Cash Flow-1.55M-2.73M-4.45M-5.50M3.08M
Financing Cash Flow-1.77M-804.01K-838.56K15.30M21.26M

Rubicon Organics Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.44
Price Trends
50DMA
0.43
Positive
100DMA
0.46
Negative
200DMA
0.43
Positive
Market Momentum
MACD
<0.01
Positive
RSI
43.25
Neutral
STOCH
14.44
Positive
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 0.44 is below the 20-day moving average (MA) of 0.46, above the 50-day MA of 0.43, and above the 200-day MA of 0.43, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 43.25 is Neutral, neither overbought nor oversold. The STOCH value of 14.44 is Positive, 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 (46)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$54.79M4.0420.78%-15.44%
65
Neutral
C$45.80M-24.12%18.82%-9328.57%
56
Neutral
C$28.55M-2.68%29.78%68.83%
56
Neutral
$30.64M-12.58%9.90%-24.19%
50
Neutral
$31.32M-203.40%14.82%64.51%
46
Neutral
C$201.68M-3.28-23.14%1.87%20.75%-0.36%
44
Neutral
C$32.99M-18.73%44.21%21.93%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:ROMJ
Rubicon Organics
0.43
0.02
6.25%
TSE:DB
Decibel Cannabis Company
0.10
0.04
72.73%
TSE:VEXT
Vext Science
0.19
-0.05
-22.92%
TSE:AVCN
Avicanna
0.28
-0.02
-8.20%
TSE:CXXI
C21 Investments
0.26
-0.12
-31.58%
TSE:GWAY
Greenway Greenhouse Cannabis Corp.
0.25
0.00
0.00%

Rubicon Organics Corporate Events

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.

Private Placements and FinancingBusiness Operations and Strategy
Rubicon Organics Secures $4.5 Million in Private Placement to Boost Operations
Positive
May 7, 2025

Rubicon Organics Inc. has successfully closed a non-brokered private placement offering, raising approximately $4.5 million. The proceeds will be used for the start-up and acquisition costs of a new facility in Hope, B.C., as well as for pre-roll automation, other capital investments, and general working capital. The participation of the company’s Board of Directors in the offering is considered a related party transaction but falls within regulatory exemptions. This move is expected to strengthen Rubicon’s operational capabilities and market positioning.

Private Placements and FinancingBusiness Operations and Strategy
Rubicon Organics Expands Private Placement to Fuel Growth
Positive
Apr 30, 2025

Rubicon Organics Inc. has announced an increase in its non-brokered private placement offering from $3,000,000 to $4,500,000 due to strong market demand. The additional capital will be used for the start-up and acquisition costs of a new facility in Hope, BC, as well as pre-roll automation and other capital investments, aiming to accelerate the company’s growth initiatives and strengthen its position in the Canadian premium cannabis market.

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: Jul 23, 2025