Good morning. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to the Organigram Global Third Quarter Fiscal 2025 Earnings Conference Call. [Operator Instructions] Thank you. Max Schwartz, you may begin.

Thank you, Krista, and good morning, and thanks for joining us today. As a reminder, this conference call is being recorded, and a recording will be available on Organigram's website 24 hours after today's call. Listeners should be aware that today's call will include estimates and other forward-looking information from which the company's actual results could differ. Please review the cautionary language in our press release dated August 13, 2025, on various factors, assumptions and risks that could cause our actual results to differ. Further, reference will be made to certain non-IFRS measures during this call, including adjusted EBITDA, adjusted gross margin, adjusted gross margin percentage and free cash flow. These measures do not have any standardized meaning under IFRS and are intended to provide additional information and as such, should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Our approach to calculating these measures may differ from other issuers, so these measures may not be directly comparable. Please see today's earnings report for more information about these measures. Listeners should be aware that the company relies on reputable third-party providers when making certain statements relating to market share data. Unless otherwise indicated, all references to market data are sourced from Hifyre in combination with data from Weedcrawler, provincial boards, retailers and our internal sales figures. Today, we will be hearing from key members of our senior leadership team, beginning with Beena Goldenberg, Chief Executive Officer, who will provide opening remarks and commentary, followed by Greg Guyatt, Chief Financial Officer, who will review our financial results for Q3 fiscal 2025. All references to the term Q3 will indicate Q3 fiscal 2025, unless otherwise indicated. Similarly, all references to market share data will refer to Q3 performance unless otherwise indicated. With that, I will now introduce Beena Goldenberg, Chief Executive Officer of Organigram Global, Inc. Please go ahead, Ms. Goldenberg.

Good morning, everyone, and thank you for joining us for Organigram's Q3 Fiscal 2025 Earnings Call. We are pleased to report another record-breaking quarter in both gross and net revenue, reflecting continued leadership in our growing domestic market and meaningful international expansion. Today, I'll begin with an update on our Canadian business, followed by some operational highlights and then turn to the progress in our international business. Greg will take us through the financials after that. So let's begin. In Q3, Canada's recreational cannabis market grew 6.6% year-over-year, reaching $1.4 billion in retail sales. Organigram maintained its position as the #1 licensed producer nationally with 11.6% market share, a 2.5 point lead over our closest competitor. We continue to lead in pre-rolls and vapes, which represent more than half of total cannabis sales in Canada. In Q3, we held 20.4% of the national vape segment and 8.3% of the pre-roll segment. In flower, representing over 30% of the market, we grew our share up to 10.6%, up 60 basis points from Q2. Our Big Bag of Buds brand was a major contributor, ranking as the #3 flower brand in June with 5.1% of the category, while our SHRED brand dominated in milled flower with over 40% share. SHRED remains one of the industry's top brands and the stickiest brand in Canada by repurchase rates. As of the end of June, SHRED had a 69% repurchase rate across all categories in which it participates compared to an average industry rate of in the low 50s. Further, SHRED's performance in milled flower resulted in an impressive 81% repurchase rate over the last 10 months. This means that for every 10 SHRED milled flower purchases in June, over 8 were repeat customers, speaking to both the quality and consistency of our product. While…

Thanks, Beena, and thank you to everyone for joining us today. We are pleased to once again report record revenue results with significant year-over-year and sequential adjusted EBITDA growth, and we remain confident in our path forward consistently delivering profitable quarters. In Q3, gross sales increased 73% year-over-year and 7.2% sequentially to reach a record $110.2 million. Net revenue was also our highest ever, growing 72% year-over-year and 7.9% sequentially to $70.8 million. These results were driven by contributions from our Motif and collective project acquisitions and leveraging market growth and seasonality with the strength of our brands, nationwide distribution and broad category presence. Our international business also continues to scale, growing to $7.4 million in the quarter, a 208% year-over-year increase and a 21% increase sequentially. We expect both our domestic and international businesses to continue expanding in the coming quarters. As Beena mentioned, with the interruption in our OTIF level for Motif brands restored in June, we are already recapturing market share. We expect further gains driven by the introduction of vapes in Quebec, momentum in edibles and innovations in pre-rolls and flower to drive domestic performance. On the international front, we've seen no slowdown in demand and have actively pursued capacity expansion projects to balance servicing our domestic consumers while we grow flower exports and soon more branded derivative product sales abroad. Growth in this area is expected to have a margin-enhancing effect, but we remain steady and cautious about shifting too much of our supply to international markets at the cost of our domestic brands. We expect larger international flower volumes to ship in Q4 and beyond, and we will manage this growth sustainably. That's what we are known for, and that's one of the ways we are continuing to build a stable business in a…

Thank you, Greg. As we conclude today's call, I want to express my deep gratitude to everyone who has supported Organigram's journey, our shareholders, customers, employees and industry partners. Together, we have demonstrated what's possible in building sustainable, well-regulated cannabis industry that drives economic growth, creates jobs and provides a safer alternative to the illicit market. On a personal note, as many of you know, I'll be retiring near the end of the year. It's been a true privilege to work alongside such an exceptional team and to witness this company's remarkable progress over the past 4 years. I remain extremely optimistic about Organigram's future. Our strong sales execution, operational performance, ongoing efficiency improvements and leadership and industry advocacy position us well for continued success. Canada has a unique opportunity to set the global standard for the cannabis sector, and I am confident that Organigram is on the right path to capitalize on this potential. Thank you all for your continued support and confidence in our vision. And with that, I'll now open the call for questions.

[Operator Instructions] Your first question comes from Frederico Gomes with ATB Capital Markets.

I guess the first question on your adjusted gross margins, and I guess the outlook here. I guess you're still expecting the full year adjusted gross margin to be in that 35% range. It does seem to imply a significant, I guess, expansion in Q4. So could you just talk about that, the drivers behind that and how confident you are in reaching that gross margin expansion?

Sure. That's right. We're continuing to forecast 35% approximately average for the year. And it's really driven by a couple of things. One is the normal seasonality of our business, we expect to drive more throughput in the fourth quarter. We're also going to be starting to realize some of the synergies from the Motif acquisition as well. We've realized about $4 million year-to-date so far, but a good chunk of that is actually still sitting in inventory because it's production related. So we'll see some of that starting to flow through in the fourth quarter and as well into Q1 of next year. Also, product mix plays a role. We're continuing to increase our international business, which has a positive impact on margins. and also starting to realize some of the benefits from the capacity enhancement projects in Moncton. I think a really important point here as we go into next year, our scale is going to continue to improve. And as I mentioned, we're really expecting margins to start to ramp up in the back half of next year, starting to approach that 40% level. So ultimately driven by cost improvements, lower cost per gram and some of the capacity enhancement projects that we mentioned about really affecting our Moncton facility.

Got it. I guess the second question, just if you could talk about how you are looking at your cultivation capacity right now? Because I know that -- you made some improvements there. At the same time, I think, Dino, you mentioned that you are reevaluating some previous plans to invest in CapEx there. At the same time, I guess we're seeing an improvement in prices in Canada and then strong international demand. So how do you balance that? And how are you looking at that right now?

Yes, sure. So listen, there is growing international demand. And as we constantly say, we're balancing that demand between what we need for our domestic market and what we need for international markets. So we've done some capacity expansion projects that have generated an additional 14,000 kilograms for us for -- as we look forward next year. Clearly, there's opportunity to add more. But what we said last quarter was we were going to invest $8 million in adding 9 grow rooms to our Moncton facility. And at this point, we're reevaluating that investment to figure out the best use of the space that becomes available once our London distribution warehouse gets up and running. We'll have space in Moncton. And we're not sure if it's fully growing capacity or if it's drying capacity. So we're still working through deciding what is the optimum increase that we require to capitalize on international opportunities. But it's clear. There is opportunities to sell more flower, and we're going to look at the most cost-effective way to generate more kilograms so that we could take advantage of the growing international market and not walk away from the domestic market. So it's an ongoing project. We're pretty happy with the fact that we were able to just through optimization projects, get an extra 14,000 kilos out of our Moncton facility. We're also getting a few more kilos out of our La Superior facility. So this is an ongoing project to take advantage of our current assets, sweat those assets and decide how to optimize them further.

Your next question comes from the line of Aaron Grey with Alliance Global Partners.

So I want to piggyback off that last question from Fred a bit. So speaking specifically to the international opportunities, you did mention with the GMP certificate as you guys are still waiting. So first, if you can just give some expected timing on that because it seems like it's been delayed from what we were expecting before. And then second, regarding the increase in volume that you expect that you could achieve from that, could you maybe help us to kind of quantify how much of a lift we could expect there? How much revenue are you currently leaving on the table now or isn't as appealing because it's not as profitable right now because you're going through the middleman, that will become more appealing once you receive the certificate. So any color on that would be appreciated as we might be able to some -- expect some type of step change with international once you get the GMP.

Yes. Thanks for your question, Aaron. So here's the story. Listen, we would have liked to have already received our EU GMP certification. But when you're dealing with the regulatory authority, we don't control the timing of the process or how quickly they get to follow-up questions. We're certainly responding as questions are coming up. This is perhaps some speculation on our part. But clearly, there was an issue in Portugal with some of the GMP hubs that were closed because of lack of GMP compliance. And we think right now, the German regulators are just being that much more careful on compliance and granting the certification. We remain confident that we'll achieve the certification. So it's not a question, but timing is -- it will happen. As soon as it happens, I'm sure we'll let everybody know. So what does that mean? Certainly, once we get the GMP certification, we remove the middleman. Our pricing goes up. So we get a pickup on our margin on international because we take pricing, and it actually benefits our customer because their costs go down. So it's a win-win for both us and the customer. It will also make sure that the product goes directly through to the customer. So we don't have kilograms of product hung up in Portugal waiting to be converted and in line with many other companies' products that are waiting for conversion. So it's a quicker turnaround flow-through without delays. So it will allow us to get product out to the customers much more quickly. So you get the bump in pricing, and that will just be a benefit on the margin side. In terms of additional demand, there's certainly international demand, and it is obviously a higher-margin business today even without the GMP certification versus our…

Okay. Great. Really appreciate that color, Bina. Second question for me, just as we think about investment opportunities, particularly in the U.S., can you talk about some of the appealing investment opportunities available today? And then how might that change in the event of federal reform by the way of rescheduling to Schedule III or otherwise as obviously, there's been a number of news reports that have come out recently on that.

Yes, sure. So everybody is waiting for the reschedule to Schedule III. And when that happens, we'll see when and if it happens. But the good news is that it's indicating or it's sending a message that cannabis continues to move along the trajectory towards legalization. It's slow. It's going to take some time, but getting the U.S. over that hump just opens up the whole category as being, again, a real category where investors will invest in it, they'll attract more attention. I think it will be good for overall industry. So we're excited about that as to if it changes from Schedule I to Schedule III, it doesn't really change the overall legalization, right? It's still illegal on a federal basis. So it doesn't change our ability to ship product into the U.S. It doesn't -- so from that perspective, we would still have the challenges with doing any kind of plant touching activity in the U.S. with -- that wouldn't be compliant with our NASDAQ or TSX listing. So I don't think it changes our position on plant touching in the U.S., but we're pretty excited about what we've been doing in the U.S. already. Not only do we see big opportunities on the beverage category, and we'll continue to invest there. But we've really seen some great results out of our relationship with Filos, our investment there in terms of the seed-based, working on some other really interesting cultivars and genetics that will help us really drive both yield and the Ram as we want. And so that continues to work. So we're pretty excited about continuing to focus on the genetic side as well. So the U.S. is interesting, but I would say in the short term, our M&A focus will be on international markets. because they're legal on the medical front, and they just open up more opportunities for us. So in the short term, I think that's the bigger focus for us while we capitalize on our existing investments in the U.S. market.

And that concludes our question-and-answer session. And I will now turn the conference back over to Beena Goldenberg for closing comments.

So thank you, everybody, for joining our call today. It will be my last earnings call. So I do appreciate the support you've given me and the opportunity to talk to our investors and our people that are interested in what Organigram's journey is all about. I know the business will be in good hands as we move forward. So thank you again for joining us today. Have a good one.

Ladies and gentlemen, this does conclude today's conference call. Thank you for your participation, and you may now disconnect.