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Rubicon Organics
(ROMJ)
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Rating:55Neutral
Price Target:
C$0.49
▼(-16.61% Downside)
Action:Reiterated
Date:08/21/26
The score is held back primarily by weak financial performance—gross margin compression and negative operating/free cash flow increase funding risk despite strong revenue growth. Offsetting factors include constructive technical trend signals and a relatively positive earnings-call outlook with guidance for improving revenue, margins, and EBITDA through H2 2026 into 2027, though execution and liquidity remain key constraints.
Positive Factors
Strong Revenue Growth
Rubicon is demonstrating meaningful top-line momentum, with record quarterly revenue supported by improved supply across its premium portfolio. Sustained growth can improve fixed-cost absorption, strengthen distribution relationships, and provide a stronger base for margin expansion as newer capacity ramps.
Negative Factors
Severe Gross-Margin Compression
The sharp decline in gross margin shows that revenue growth is not currently translating into durable economic profitability. Continued pricing, mix, or cost pressure could limit the benefits of scale, reduce reinvestment capacity, and make management’s longer-term margin targets dependent on successful operational improvements.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
Rubicon is demonstrating meaningful top-line momentum, with record quarterly revenue supported by improved supply across its premium portfolio. Sustained growth can improve fixed-cost absorption, strengthen distribution relationships, and provide a stronger base for margin expansion as newer capacity ramps.
Read all positive factors
Rubicon Organics (ROMJ) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$32.44M
Dividend YieldN/A
Average Volume (3M)112.63K
Price to Earnings (P/E)―
Beta (1Y)0.18
Revenue Growth16.66%
EPS Growth-1007.41%
CountryCA
Employees265
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.02
Shares Outstanding67,578,920
10 Day Avg. Volume112,822
30 Day Avg. Volume112,634
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 Upside94.92% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)C$73.07M
Rubicon Organics Business Overview & Revenue Model
Company Description
Rubicon Organics Inc. cultivates, processes, and distributes organic cannabis products for both recreational and medicinal consumers across Canada. The company markets its organic cannabis through its proprietary labels as well as various licensed...
How the Company Makes Money
Rubicon Organics makes money primarily by selling branded cannabis products into Canada’s regulated legal cannabis market. Its core revenue stream is the wholesale sale of finished, packaged cannabis (notably premium organic dried flower and other...
Rubicon Organics Earnings Call Summary
Earnings Call Date:Aug 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 18, 2026
Earnings Call Sentiment Positive
The call communicated clear operational momentum (record revenue, 20% yield gains at Pacifica, Cascadia brought online and certified, market share gains, and margin improvement potential excluding Cascadia start-up costs) alongside typical early-stage scaling challenges (Cascadia yields below targets, modest Q2 Cascadia revenue, higher SG&A, slight YoY decline in adjusted EBITDA, and limited cash). Management offered a coherent plan (yield optimization, in-house extraction, automation, portfolio optimization, international expansion) and expects margin and EBITDA ramp in H2 2026 into 2027. Overall, positives (revenue growth, operational wins, brand strength, certifications) materially outweigh the near-term costs and execution risks.Positive Updates
Record Q2 Revenue and Strong Top-Line Growth
Q2 2026 net revenue of $18.5M, a record quarter representing +23% year-over-year and +35% sequential growth; management attributes growth to improved supply across the premium brand portfolio and recovery from prior distribution disruption.
Negative Updates
Cascadia Yields Below Long-Term Targets
Management acknowledges Cascadia's initial yields remain below long-term targets; yield optimization is ongoing and expected to take the remainder of the year to fully ramp, which delays full margin contribution from the new facility.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Q2 Revenue and Strong Top-Line Growth
Q2 2026 net revenue of $18.5M, a record quarter representing +23% year-over-year and +35% sequential growth; management attributes growth to improved supply across the premium brand portfolio and recovery from prior distribution disruption.
Read all positive updates
Company Guidance
Management guided that Rubicon expects revenue and adjusted EBITDA to progressively ramp through Q3 and Q4 2026 (building more visibly into 2027) after a record Q2 of $18.5M (+23% YoY, +35% sequentially), noting Q2 brand mix was 1.91k 64% / Simply Bare 25% / Wildflower 6% / international 4%; international sales are expected to average ~10% of full‑year 2026 revenue (with ~1/3 of international currently in the UK). Key operational targets include sustaining ~20% higher per‑crop yields at Pacifica (H1 2026 vs H1 2025), ramping Cascadia (initial late‑Q2 revenue ~ $450k) toward planned production, converting current ~15.5k kg annual capacity across both facilities toward a pathway to ~20k kg in 18–24 months, and pushing gross margin higher (Q2 GM before fair‑value adj was 30% and would be ~36% excluding Cascadia pre‑revenue costs, with management aiming for gross margins in the 40%+ area over time). Other guidance/near‑term milestones: hydrocarbon extraction to be brought in‑house by December (benefiting vape margins in Q1 2027), continued benefit from three automated pre‑roll machines, ongoing yield and manufacturing efficiency CapEx (H1 CapEx was ~$2.6M), and an expectation that SG&A ($6.9M in Q2) will be manageable as a percent of sales while supporting growth; cash was $3.0M and working capital $20.9M at quarter‑end.Rubicon Organics Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
62
Positive
Cash Flow
22
Negative
| Breakdown | TTM | Dec 2025 | Mar 2025 | Dec 2023 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 64.23M | 59.45M | 48.70M | 40.12M | 35.52M | 22.61M |
| Gross Profit | 3.60M | 22.14M | 15.42M | 13.14M | 13.81M | 1.51M |
| EBITDA | -9.06M | 5.12M | 1.86M | 2.40M | 217.00K | -10.87M |
| Net Income | -1.74M | 1.05M | -2.56M | -1.82M | -3.86M | -14.52M |
Balance Sheet | ||||||
| Total Assets | 70.53M | 66.89M | 56.61M | 54.89M | 56.11M | 54.84M |
| Cash, Cash Equivalents and Short-Term Investments | 2.96M | 3.99M | 9.86M | 10.91M | 8.29M | 11.58M |
| Total Debt | 15.58M | 12.42M | 9.89M | 10.40M | 10.22M | 9.82M |
| Total Liabilities | 28.18M | 22.84M | 19.21M | 17.00M | 17.77M | 15.94M |
| Stockholders Equity | 42.35M | 44.06M | 37.40M | 37.89M | 38.33M | 38.90M |
Cash Flow | ||||||
| Free Cash Flow | -8.21M | -12.04M | 1.85M | 2.32M | -2.50M | -15.94M |
| Operating Cash Flow | -3.01M | -3.63M | 3.40M | 5.05M | 1.95M | -10.44M |
| Investing Cash Flow | -5.20M | -8.42M | -1.55M | -2.73M | -4.45M | -5.50M |
| Financing Cash Flow | 3.99M | 6.25M | -1.77M | -804.01K | -838.56K | 15.30M |
Rubicon Organics Technical Analysis
Negative
0.59
Price Trends
0.48
Negative
0.48
Positive
0.48
Positive
Market Momentum
0.01
Positive
44.03
Neutral
7.04
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 0.59 is above the 20-day moving average (MA) of 0.52, above the 50-day MA of 0.48, and above the 200-day MA of 0.48, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 44.03 is Neutral, neither overbought nor oversold. The STOCH value of 7.04 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
55 Neutral | C$32.44M | -19.51 | -4.00% | ― | 16.66% | -1007.41% | |
53 Neutral | C$32.04M | -6.47 | -13.79% | ― | -6.74% | 43.54% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | C$5.95M | -3.07 | -43.92% | ― | -18.30% | -397.37% | |
46 Neutral | C$17.47M | -4.01 | -108.44% | ― | -0.23% | -142.54% | |
44 Neutral | C$10.35M | -8.01 | -19.37% | ― | -19.20% | 42.54% | |
41 Neutral | C$11.21M | -3.21 | 28.59% | ― | 0.90% | 57.73% |
* Healthcare Sector Average
TSE:ROMJ
Rubicon Organics
0.48
-0.12
-20.00%
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Rubicon Organics Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Rubicon Organics Sets September 24 Date for Shareholder AGM
Positive
Sep 3, 2026
Rubicon Organics has scheduled its Annual General Meeting of shareholders for September 24, 2026, at 9:00 a.m. PT in Vancouver, British Columbia. Shareholders will review the company’s audited financial statements for the year ended December...
Business Operations and StrategyFinancial Disclosures
Rubicon Organics Grows Q2 Revenue While Scaling Premium Cannabis Production
Positive
Aug 12, 2026
Rubicon Organics reported Q2 2026 net revenue of $18.5 million, up 23% year‑over‑year and 35% sequentially, with six‑month revenue rising to $32.1 million. Adjusted EBITDA declined to $1.1 million as the company invested to scale...
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.