Organigram Global Inc.

good morning my name is ed and i'll be your conference operator today at this time i would like to welcome everyone to the organogram global second quarter fiscal 2026 earnings conference call after the speaker's prepared remarks there'll be a question and answer session please limit yourself to one question and one follow-up you may re-queue for additional questions thank you i'll now turn the call over to max schwartz director of investor relations

Thank you very much, and good morning, everyone. Thank you so much for joining us today. As a reminder, this call is being recorded, and a replay will be available on our website within 24 hours. Today's call will include forward-looking statements. Actual results could differ material due to a number of risk factors outlined in our filings and cautionary statements included in our Q2 fiscal 2026 press release and MD&A. We'll also reference certain non-IFRS measures, such as adjusted EBITDA, adjusted gross margin, and free cash flow. definitions and reconciliations are available in our disclosure materials. Unless otherwise noted, market share data is sourced from High Fire, Weed Crawler, potential boards, retailers, and our own internal sales tracking. Discussing our results today are James Yamanaka and Greg Guyatt, CEO and CFO of Organigram Global, respectively. Once again, I welcome you to today's call. And with that, I will turn the call over to James.

Thank you, Max, and good morning, everyone. Thank you for joining us today. It's now been about four months since I joined Organigram, and after an initial period of deep operational review across the business, my focus remains on execution, leveraging our strengths, addressing areas for improvement, and fully realizing the financial and strategic contributions of Sanity Group and Q3 and beyond. Overall, the company has meaningfully repositioned itself for expansion, However, Q2 was a challenging quarter, with the Canadian recreational market growth being called down from 5% to 2.2%, operational issues temporarily impacting our performance in vapes and infused pre-rolls, and improving but elevated levels of out-of-spec international flour, which we continue to work through. Before getting into our quarterly highlights, I'll walk through these challenges and how we are addressing them. In pre-rolls, coded IPR quality inconsistencies following the internalization of pre-roll production at Elmer and the use of new production equipment introduced higher variability in fill rates and lower overall product consistency as we calibrated our processes. The result was lower repurchase rates and a 1.6 point share loss in overall pre-rollers versus the prior year period. That is not acceptable to us. In response, we tightened quality control processes and implemented production changes to enhance consistency. Pre-rolls coming off the line today are already more consistently filled and coded, and we expect to introduce IPR coding automation in the near term to ensure consistency remains at acceptable levels. In VAPES, segments of our portfolio fell below competitive benchmarks on both pricing and potency, contributing to share erosion across 510s and all-in-ones. A key driver of the 6.1-point year-over-year share decline was our over-indexing toward lower-potency 1.2-gram vapes as consumer demand shifted toward higher-potency 1-gram formats. To address this, we are launching higher-potency offerings and refreshing both product and hardware, including Boktot, Liquid Diamond, all-in-ones in the coming weeks. On international flour, On-spec pass rates have improved from Q1 due to adjustments we've made to our post-audit processes. Quarter-over-quarter growth in international sales from 5 million in Q1 to 6.1 million in Q2 reflects that progress. However, there is more work to be done here to bring our on-spec volumes up to international levels. We expect continued improvement in Q3, supporting both revenue and margin expansion in the back half of the year. Despite these challenges, challenges, we delivered strength across a number of other areas. In flower, we gained 2.2 share points year over year, driven by strong performance from big bag of buds and key cultivars, such as Purple Punch Out and Ultra Sour, as well as very strong reception for our new root beer cultivar. These gains reflect continued improvements in flower potency, quality, and consistency, strengths we expect to carry into upcoming pre-roll and mid-flower launches, and our summer shred retail activations. In edibles, we gained 1.8 share points year over year, while beverages and constant trades grew 0.7 and 3.1 points, respectively. We attribute this growth to innovation, including new beverage launches such as shred shots featuring our fast technology, as well as continued momentum in products like Shredim's Max 10s and BoxHot with Diamonds. While we saw increased competition in millflower and modest share declines year over year, we returned to growth sequentially and held a leading 38.9% share in that segment. Overall, Organigram remains the number one LPN in Canada by market share in Q2. We maintain leadership positions in the key markets of Ontario, British Columbia, and Alberta, while continuing to build momentum in Quebec. We now rank number three in the province, reaching 11.3% market share as of the end of March, a 2.6 point increase year over year, and are the fastest growing LP in Quebec fiscal year to date. This performance has been driven by strong Quebec vape and flower sales, contributing approximately 25 million in retail sales in the province during the quarter. Across our portfolio of industry-leading brands, Shred, BoxHot, and Big Bag of Buds were all ranked within the top eight brands nationally. Big Bag of Buds is the fastest-growing flower band in the country. BoxHot is the number one concentrate, the number two vape brand, and Shred alone would rank as the top 10 LLP by its market share. Taken together with the operational remediation and product enhancements underway in vapes and infused pre-rolls, We are confident in our ability to regain share and drive stronger growth in the back half. Moving on to our international business, the completion of our Sanity acquisition in April marks a significant milestone for Organigram, creating a combined entity with leadership positions in the world's two largest federally legal cannabis markets, Canada and Germany, with growth initiatives underway in Switzerland, the UK, Poland, and the Czech Republic. Sanity is expected to generate on average approximately 25 million euros in quarterly revenue over the next year and serves as a platform to scale across Europe as the market continues to evolve toward more structured medical frameworks. From an integration standpoint, Sanity will operate fairly independently in the first year, allowing the team to remain focused on execution and growth within its core markets while receiving strategic support and supply from global Organigram resources where appropriate. Outside of Europe, we continue to supply flour to partners in Australia, where we also recently launched Vape and Edible SKUs under our Bauxot and Edison brands, expanding beyond wholesale flour into branded sales. Our products are expected to be available to more than 4,000 pharmacies nationwide as distribution rolls out. Regarding recent cannabis rescheduling in the U.S., we are watching closely. It is too early to determine which pathways, if any, to accessing the U.S. medical markets are viable for us. Our two U.S. strategic investments will likely benefit from these developments, and we continue to evaluate opportunities as the regulatory landscape evolves. Finally, with respect to EU GMP certification, In April, we provided all additional documentation requested by the regulator today to support the closure of all major findings identified in our certification audit. Given the increased scrutiny of licensed producers seeking EU GMP status, it is difficult to predict timing, but we expect an update on certification in the coming months. Turning to operation, notwithstanding the quality control improvement we've already implemented in IPR production, We are seeing continued improvement in several areas. In Q2, we achieved a record quarterly harvest of over 32,000 kilograms supported by yield improvements, while average TFC at our Moncton facility reached 29.8%, the highest level to date. Looking back at Q2 last year, our yield improvements equate to a 56% increase in capacity, without expanding our facility footprint and reducing our cultivation costs. We also continue to advance our genetics programs, including the identification and deployment of powdery mildew-resistant cultivars discussed last quarter. Two resistant cultivars were launched in March. These advancements are contributing to lower plant care requirements, reduced input costs, and improved yields. We are now expanding the program to target additional traits including terpene and aroma color expression color and broader resistance to mold and yeast this work also dovetails with our seed-based cultivation strategy which remains a key focus area in q2 approximately 25 percent of our harvest was grown from seed and we continue to evaluate offered opportunities to expand this approach to further reduce costs and increase consistency finally in winnipeg we continue to ramp up our beverage production line to meet the growing demand of the market. And we are already seeing a strong reception for our recently launched Tread sodas, which are expected to drive additional beverage growth in Q3. Overall, Q2 presented challenges that impacted our results and required us to move quickly to implement competitive and operational adjustments that we expect will support more sustainable performance over the back half of the year. Those adjustments are being closely monitored And early indicators suggest the actions already completed and underway are beginning to improve execution and stabilize performance across the impacted business segments. With stronger execution expected in our core business, further improvements, international performance, typical seasonal tailwinds, and the addition of Sanity's financial contributions in Q3, we expect a stronger back half of the year supported by both revenue growth and margin expansion. With that, I'll turn over the call to Greg. to provide additional details on our financial results.