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Red or black: A roundup of cannabis financial news

Published on May 22, 2026 by Pat Bulmer

Photo: Contributed

Cannabis financial news: Everything coming up Cronos; Organigram slowing down; Back Forty boosts Auxly; Online sales drive Avicanna; MediPharm stays disciplined

Everything is rising for Cronos

Cronos Group’s Spinach brand has hit No. 1 in Canada in vaping sales, the company declared in a quarterly financial report that was so bright the glare was almost blinding.

“The Spinach brand’s most significant achievement in Q1 2026 was reaching #1 in the vape category for the first time in the brand’s history, capturing 9.8% total vape market share across all formats in Canada,” the report said. “In vape cartridges specifically, Spinach reached 11.1% market share in the quarter, also ranking #1.”

Spinach Pufferz brand reached the No. 2 market share position for all-in-one vapes in March, “just four months after launch.”

Spinach edibles are also Canada’s top-selling brand, led by Sourz by Spinach, the report said. Cronos also launched new prerolls.
The report for the first quarter of 2026 praised Cronos’s “borderless products strategy.” The company’s Peace Naturals brand is No. 1 in Israel and “we continue to see robust growth potential for our products in Europe. Cronos recently acquired CanAdelaar, a leading cannabis company in the Netherlands.

The company’s Lord Jones brand was introduced to the Israeli market.

Expansion at Cronos GrowCo is increasing the company’s supply, the company said.

Cronos got out of the hemp drinks market a while ago in the United States, where a clampdown on intoxicating drinks is being threatened.

Some financial highlights from the report:

— Net revenue of $45.2 increased by $12.9 million compared to Q1 2025. “The increase was primarily due to higher cannabis flower sales in Israel and other countries, which carry no excise taxes, and higher cannabis extract and flower sales in the Canadian market.”

— Gross profit of $19.2 million increased by $5.4 million. “The increase was primarily due to higher average sales prices, largely driven by a mix shift to Israel and other countries.”

—  Net income of $15.7 million increased by $8 million.

— Adjusted EBITDA of $5.1 million improved by $2.8 million. “The improvement was primarily driven by higher gross profit, partially offset by higher operating expenses due to higher sales and marketing, general and administrative, and research and development (R&D) costs.”

Cronos is renewing a share repurchase program. Over the last year, 13 million shares worth $33.5 million were returned to the company.

Slow start to 2026 for Organigram

Cannabis giant Organigram suffered a financial slowdown to start 2026.

Revenues and other numbers were down for the period ending March 31, which was actually the second quarter of the 2026 financial year.

“Q2 reflected our underperformance in vapes and temporary challenges in infused preroll production, compounded by slower industry growth,” said James Yamanaka, CEO in the report.

“We acted quickly to address these issues, and the operational changes and product

enhancements we have implemented are already beginning to stabilize performance,” he said.

CFO Greg Guyatt said Organigram remains fundamentally strong.

“While margins and profitability were pressured during the quarter, the underlying cost structure of the business continues to improve, supported by higher yields, operational efficiencies, and prior investments in automation. We expect to resume our trajectory of margin expansion and profitability improvement through the second half of the year.”

Two major revenue categories were down 9% compared to the same period a year ago. Gross revenue was $93.3 million and net revenue $59.8 million, “primarily driven by lower vape and infused preroll sales.”

International revenue was even at $6.1 million.

EBITDA was $0.9 million, a drop $4.9 million from a year ago. “The decrease in adjusted EBITDA … is primarily due to lower recreational revenue while operating expenses remained flat.”

Net loss was $0.9 million compared to net income of $42.5 million in the same quarter last year.

Organigram said its market position in Canada remains strong, boasting it’s No. 1 in vapes, milled flower and concentrates, No. 2 in flower and prerolls, No. 3 in edibles and No. 5 in beverages.

It launched 10 new vape and gummy products under the Boxhot and Edison labels in Australia.

The company achieved a record quarterly harvest of over 32,000 kilograms (+56% year-over-year) and the highest average THC potency at its flagship Moncton facility, the report said.

Organigram also launched two powdery mildew resistant cultivars.

“Combined with continued improvements in yields and flower potency, and the contribution from Sanity Group (a recent German acquisition) beginning in Q3, we believe the business is positioned for stronger execution and improved performance in the second half of fiscal 2026,” said Yamanaka.

“Sanity Group is expected to generate approximately €25 million in average quarterly revenue over the next calendar year,” the report said.

Back Forty keeps Auxly in good shape

A top-selling brand and a couple new labels helped Auxly Cannabis boost its revenues in the first quarter of 2026.

“Auxly delivered a strong first quarter, with net revenue of $39.8 million, up 22% year-over-year, and adjusted EBITDA of $12.3 million, up 65% year-over-year,” said CEO Hugo Alves in a financial statement. “Our top line success can be attributed to the value proposition offered by Back Forty, contributions from new innovations like South Point and All-in-One Boosted vapes, and improved distribution.”

Net revenue for the quarter was $39.8 million, compared to $32.7 million in Q1 2025, an increase of 22%.

“The increase was particularly supported by strong performance in the company’s flower segment, which benefited from increased demand and improved distribution,” the report said.

Gains in the Gross Margin on Finished Cannabis Inventory Sold category were credited to reduced operating costs in the manufacturing process, higher cultivation yields, efficiency improvements at the Charlottetown facility and cost-cutting procurement initiatives.

Net income was $3.5 million, a decrease of $8.6 million. A tax refund last year and inventory issues this year contributed to the difference, the report said.

Sales and administrative expenses were $11.4 million, or 28.6% of net revenue, compared to $9.7 million, or 29.6%, in 2025. The increase reflects investments made to support higher sales, while the decline as a percentage of net revenue indicates improved operating efficiency, the company said.

Adjusted EBITDA was $12.3 million, an improvement of $4.8 million or 65% compared to $7.4 million in last year’s quarter.

As of March 31, the company’s assets were $109.2 million, including cash and cash equivalents of $42.7 million. Total debt outstanding was $45 million

“We generated $11.3 million of cash flow from operations, up 102% year-over-year and finished the quarter with a cash balance of over $42 million, giving us a strong balance sheet to support our capital program, repurchase Auxly common shares … and consider opportunistic uses,” said Alves.

Auxly said it plans to strengthen its Canadian presence while looking at opportunities internationally.

The company plans to spend $10-$12 million on capital projects at its Leamington, Ont., facility in 2026.

Online sales booming

Avicanna’s online medical cannabis platform is driving the company’s growth, its latest financial report said.

“Revenue for the first quarter of 2026 was $6.68 million, representing the highest

quarterly revenue in the company’s history and an increase of approximately 6% compared to the first quarter of 2025. Revenue growth was primarily driven by an 11% increase in MyMedi.ca revenue and a 24% increase in product sales in Canada compared to the same period in 2025,” the report said.

“MyMedi.ca delivered its fourth consecutive quarter of growth while the company continued expanding its Canadian commercial platform through additional SKUs (products), channels, and product listings,” the report said.

The quarter marked the highest sales ever for MyMedi.ca, with 220,246 units. “Sales of Avicanna-branded products through MyMedi.ca increased from 19,662 units in the 2026, representing a 42% rise.

Cannabinoid products are Avicanna’s specialty. RHO Phyto and Aureus Santa Marta are the company’s main brands. The company also makes white-label cannabis pharmaceuticals for other companies.

“Across all Canadian commercial channels, including MyMedi.ca, Avicanna-branded product unit sales increased from 36,624 units to 45,419 units, representing

24% year-over-year growth,” the report said.

“At the end of the quarter, the company had 52 commercial SKUs and 170 commercial listings across medical and adult-use channels.”

Other numbers:

— The company reported an EBITDA loss of $0.15 million, compared to EBITDA income of $0.43 million during the same quarter a year ago. “The decrease in adjusted EBITDA was primarily attributable to a revenue mix shift,” the report said.

— The company achieved gross profit of $3.84 million, representing a 7% year-over-year increase.

— “The company reduced its working capital deficit by $0.95 million to $0.32 million, compared to a deficit of $1.28 million during the comparative period.”

Potential new Avicanna products were involved in two clinical trails during the quarter and company subsidiary SMGH completed its first export to Australia.

Discipline key at MediPharm

Cannabinoid company MediPharm Labs says financial discipline is why it is able to report positive results in most categories.

“MediPharm Labs achieved positive adjusted EBITDA in Q1 2026, reflecting disciplined execution and continued cost control aligned with the company’s strategic roadmap to profitability,” a financial report said.

“Adjusted EBITDA of $0.1 million is an improvement from negative $0.1 million in Q4 2025,” the report said.

“MediPharm Labs ended Q1 2026 with a cash balance of $9.9 million, and remains virtually debt-free, with outright ownership of two licensed production facilities with a combined appraised value of more than $15M,” the report said. “The company is also current on excise duties and trade payables. This strong balance sheet differentiates MediPharm Labs from many industry peers.”

In the quarter ending March 31, MediPharm dove headlong into the export market “completing its inaugural commercial shipment to New Zealand, securing new purchase agreements in France and Brazil, and expanding its branded Beacon and Wildlife portfolios across Europe and Australia.”

The Barrie, Ont., company also hopes for more American activity with the recent rescheduling of medical cannabis by the Trump administration.

Financial highlights:

— Q1 revenue was $9 million with a gross margin of 37%, “reflecting disciplined product mix and cost control.”

— International medical revenue was $4.6 million, “representing 51% of total revenue for the quarter.”

— “In Germany, the company delivered 14% sequential revenue growth  … supported by the expansion of Beacon Medical and Wildlife product portfolios.”

— “Canadian medical cannabis revenue of $3.0 million was relatively flat to prior year.”

— “Gross profit for the quarter was $3.3 million or 37%.”

— “Operating expenses for Q1 2026, were $4.2 million and decreased $1.6 million or 28% versus Q4 2025.”

— “Restructuring actions completed during the quarter are expected to deliver approximately $1.0 million in annualized cost savings.”

“In Canada, MediPharm Labs remains committed to serving patients and wellness consumers through its direct‑to‑patient medical platform, its established clinic network, Harvest Medicine, and its expanding wellness portfolio,” the report said.