09:27 AM EDT, 05/28/2025 (MT Newswires) -- Rubicon Organics ( ROMJF ) , a licensed producer focused on cultivating and selling organic certified and premium cannabis, overnight Tuesday said its net loss narrowed while revenue rose in the first-quarter, and the company is forecasting growth in both net revenue and Adjusted EBITDA for 2025 even as it expects Hope costs will impact.

The company said its first-quarter net loss was $322,064 or $0.01, down from a net loss of around $1.9 million or $0.03 in the corresponding year-ago quarter.

First-quarter net revenue of the company rose 39.2% to around $12.4 million, compared to about $8.9 million a year earlier.

The company posted a positive adjusted EBITDA of $717,892 in the quarter, compared to a loss of $423,212 in the year-ago quarter.

Among other highlights, Rubicon removed remaining conditions for the Hope Facility acquisition with an expected close in the near term, adding approximately 4,500 kgs of annual premium quality production, a 40% increase to the company's capacity, with revenue expected in the first half of 2026 and full capacity run rate achieved by the end of 2026.

For 2025, Rubicon is forecasting growth in both net revenue and Adjusted EBITDA, excluding acquisition-related and start up operational costs associated with the Hope Facility, driven by its ongoing expansion and strategic initiatives. "While we anticipate strong underlying performance in 2025, we expect the Hope Costs will impact our reported financial results. Despite the potential short-term impact of the Hope Costs on profitability, we are confident that our continued growth in net revenue and improved like-for-like Adjusted EBITDA will position us for long-term success and value creation."

Chief Executive Officer Margaret Brodie said: "With the removal of conditions for the purchase of the Hope Facility and the successful completion of our $4.5 million private placement, we are well-positioned for long-term growth, both in Canada and internationally. Our strategic priorities remain focused on disciplined growth, operational efficiency, and product innovation."

"With 39% year-over-year revenue growth and positive Adjusted EBITDA, Q1 2025 highlights the strength of our operating model and financial discipline," said Glen Ibbott, Interim CFO. "Our strong first quarter results, along with a robust balance sheet, and our recent capital raise, provide the foundation to support our expansion while maintaining financial flexibility."