Operator: Good morning, everyone. Welcome to Rubicon Organics Second Quarter 26 earnings call for the 3 and 6 months ended 06/30/2026. As a reminder, this call is being recorded. At this time, all participants are in a listen only mode. Following the presentation, we will conduct a question and answer session. Instructions will be provided at that time for analysts to queue up for questions. Before we begin, please refer to Slide 2 for our caution regarding forward looking statements and non GAAP measures. Today's presenters are Margaret Ruth Brodie, CEO and Glenn Ibbott, CFO. I will now turn the call over to Margaret.
Margaret Ruth Brodie: Good morning, everyone. Thank you for joining us to review our second quarter results and provide an update on our progress in 2026. Rubicon is proud to remain Canada's number 1 premium licensed producer, this quarter reflected execution on many fronts. Our second quarter results demonstrate the strength of Rubicon's premium focused strategy and the progress we are making across our expanding operating platform. We delivered record Q2 net revenue of $18.5 million representing 23% growth year over year and 35% growth sequentially. While continuing to gain market share in the premium category. Importantly, growth was achieved primarily through improved execution at our Pacifica facility, Targeted operational initiatives drove approximately 20% higher per crop yield in the first half of 2026 compared to the prior year. Supported by increased product availability across our portfolio. Growth was realized across all 3 of our key brands in Canada, international markets also contributed to our continued momentum. Our new Cascadia facility also achieved several meaningful milestones during the quarter, namely hitting 64 brand quality earlier than expected and we were able to realize $5 million of revenue from Cascadia derived products. While initial yields remain below our long term target, yield optimization is a normal part of ramping up a cap cannabis cultivation facility, and we continue to refine cultivation practices, environmental control and genetic selection to support further improvement through the balance of the year. The yield growth that we have been able to achieve at Pacifica indicates to us that our goals at Cascadia are achievable. Internationally, our Cascadia facility has now received its GACP certification. Both of our facilities now have the required international certification strengthening our readiness to serve regulated international medical markets as we build momentum from the 1.91 thousand branded launch in The UK and support our broader strategy of bringing Rubicon's premium brands and genetics to a growing global customer base. Overall, we continue to review 2026 as a tale of 2 halves. Our first half reflected the significant improvement of our Pacifica facility and the remaining investment required to bring Cascadia online and support our next phase of growth. As production volumes increase and operating efficiencies reach our expectations, we expect the benefits of our expanded platform to become more visible through the second half of the year and notably into 2027. With that, I will turn the call over to Glenn to review the financials.
William Glenn Ibbott: Thank you, Margaret. Good morning, everyone. Revenue for Q2 2026 was $18.5 million a record quarter for us, up 23% year over year and 35% sequentially. The disruption that we saw in Q1 from the lingering effects of the late 2025 BC distribution strike, and the typical industry seasonality appear to be in the rearview mirror. This revenue growth was driven by our increasing ability to supply the existing demand across our premium brand portfolio. In Q2, this was mainly supported by higher production yield at Pacifica, which are up 20% on average in the first half of 2026 compared to H1 2025. Importantly, for future quarters, Cascadia has begun to move from a pre revenue investment phase to a revenue-generating part of our platform. With this initial revenue contribution of $450 thousand was realized late in the second quarter. Q2 revenue growth year over year was driven across both 1.91 thousand and Simply Bare by a mid teens percentage increase in dried flower and over 40% growth in pre rolls. As well as international sales, a revenue channel that did not exist for Rubicon in Q2 of 2025. For Q2 2026, 1.91 thousand delivered 64% of our revenue, Simply Bare contributed 25%. Wildflower was 6%, and international sales accounted for 4%. The launch of 1.91 thousand in The UK during the second quarter represents an important step in expanding our premium brands beyond Canada. We expect international revenue to continue to grow in the second half of 2026 and to average approximately 10% of total revenue for the whole of fiscal 2026. Gross margin before fair value adjustments was 30% in Q2. Excluding pre revenue Cascadia operating costs, gross margin would have been approximately 36% in Q2. Our best gross margin since Q4 of 2024, demonstrating the strong operating leverage of the business as we add top line growth. SG&A in Q2 2026 was $6.9 million up by $2 million compared to Q2 of last year and $900 thousand sequentially, reflecting planned investments in talent, brand development in Canada, international initiatives, and growth related regulatory and insurance costs. Of the $900 thousand increase from Q1 to Q2 of 2026, 74% is marketing and sales initiatives and Health Canada fees. Both direct function of revenue growth. Adjusted EBITDA was positive at $1.1 million in Q2 compared to $1.4 million in the prior year period. This result reflects the costs associated with operating a larger platform ahead of realizing the full revenue contribution from Cascadia. Regarding liquidity, we ended the quarter with $3 million in cash and $20.9 million in working capital. We spent approximately $2.6 million on CapEx projects in the first half of 2026, all directed at achieving manufacturing efficiencies and yield and capacity increases. Looking ahead, we believe we are well positioned to continue growing Rubicon's revenue as our ability to supply existing demand in both domestic and international markets improves. As we move into the second half of this pivotal year, with the additional capacity available from Cascadia, we expect revenue and adjusted EBITDA to progressively ramp through Q3 and Q4 2026. Steadily strengthening our gross margin remains a key area of focus and attention for Rubicon's leadership team. 2026 initiatives include ongoing work to increase cultivation yield to both Pacifica and Cascadia, expanding manufacturing efficiency through projects such as pre roll automation, recently completed, and bringing our hydrocarbon oil production in house by December and finally, optimizing our product portfolio. Central to our margin approach is leveraging the increased scale from our growing operations to more efficiently absorb our production costs over the entire production volume. We expect these initiatives to contribute meaningfully to margin expansion and EBITDA growth as we move through the remainder of 2026 and into 2027. With that, I will turn the call back to Margaret.
Margaret Ruth Brodie: Thanks, Glenn. Rubicon maintained its leadership in the second quarter of 2026 as Canada's number 1 premium licensed producer. As supported by Hifyre market share data, along with continued recognition from both consumers and industry participants. Our brands are building trust. We continue to perform well across multiple categories, in premium flower, we achieved number 1 national market share at 10% for the quarter, up nearly 2 points compared to the same period last year. Despite the total premium category declining year over year, Rubicon is growing on a dollar basis and taking a larger share of dollars. In premium pre rolls, our market share increased 5% for Q2 2026, up 2% from the prior year. This segment is 1 of continued growth for Rubicon and the entire market. During the quarter, 1.91 thousand was again recognized as Brand of the Year at both the 2026 High Bud Club Award and the 2026 Grow Up Industry Award. Reinforcing the strength of the brand with consumers and budtenders across Canada. Our performance in flower continues to be driven by what we believe is 1 of the industry's leading genetic libraries to review as a key competitive advantage. Throughout 2026, we have continued to expand and refine our brand portfolios with new genetics and formats designed around consumer preferences for distinctive cultivars, premium quality and consistent brand experiences. Our 2-facility platform allows us to leverage our genetics program advantage more effectively than ever before. By matching cultivars to the cultivation environment where they perform best, we can continue improving yield, terpene expression, quality and consistency on a cultivar by cultivar basis. While our vape category performance has not yet met our expectations, revenue continued to grow year over year. We are also continuing to refine our position within the vape category with a clear focus on delivering premium quality, relevant formats and strong value for consumers. We expect recent portfolio and pricing adjustments to enhance our competitiveness and support improved performance through the balance of 2026. Turning to operations. We have been investing in our business in 2026, and we continue to make progress across several initiatives designed to improve efficiency, support future growth and strengthen profitability through 2026 setting us up for 2027 and beyond. Both our cultivation facilities are in the middle of multiyear improvements. At Pacifica, these initiatives have already delivered meaningful results, contributing to a 20% year over year improvement in yields during the first half of 2026. This progress has been driven by a combination of cultivation enhancement, infrastructure upgrades and process improvements with additional initiatives currently underway. At Cascadia, optimization efforts remain ongoing. As a reminder, the facility was operationalized on budget and on schedule. We are encouraged by our results from our initial harvest which are meeting premium quality standards required for our 1.91 thousand brand. In cannabis, there is a significant lead time between planting, harvesting, processing, sharing listings and ultimately realizing revenue. As a result, many operational improvements take time to work their way through the system and become visible in our results. At Cascadia, we are currently tracking below planned yield capacity, but we continue to assess our genetic library for the best cultivars suited for that facility, and we believe that the genetic assessment and full ramping process will last the remainder of the year. Along with adjustments to our cultivation plan, we have implemented a number of additional yield improvement initiatives including a new lighting project currently underway to transform the facility into LED lighting. This project is expected to be completed in the coming weeks and we expect to see the benefits in crops as soon as this fall. We have clear visibility into the actions required to close the gap and yield expectations and in time with the right genetics amendments to our existing infrastructure, we expect to surpass initial capacity expectations. Our current annual production capacity is approximately 15.5 thousand kilos across both facilities. But we see a clear pathway to increasing our output to 20 thousand kilos over the next 18 to 24 months, as our investments continue to mature and we believe there remains significant opportunity to improve performance. We look forward to sharing more details on some of these programs later this year. At Pacifica, we have recently completed the expansion of our pre roll automation program. Pre rolls remain 1 of the fastest growing categories in cannabis, these investments are helping us lower labor costs improve throughput and enhance gross margins. The return on our initial automation investment supported the addition of further equipment which is now fully operational and contributing to production. We are also excited about our in house hydrocarbon extraction project which we expect to see benefit our vape profitability in the first quarter of 2027. Bringing this important manufacturing capability in house is expected to reduce our reliance on third party processors, significantly lower per unit cost for concentrates and vapes and provide greater operational flexibility and innovation opportunity as those categories continue to grow. Overall, we have made meaningful shifts in our operations in 2026, whether through automation, manufacturing, insourcing or cultivation optimization, these initiatives are all focused on the same objective. Increasing efficiency, supporting growth and positioning Rubicon for stronger margins in profitability. The benefits of these investments have not yet been seen in our financial results, but we expect to see the impact as we move through the latter part of 2026 and most significantly into 2027. For the remainder of 2026, our growth strategy continues to be anchored on 3 core drivers: yields, international expansion and genetics. Yield remains at the top of that list. For several years, demand for our premium flower products has consistently exceeded available supply. With Pacifica now delivering higher yields and Cascadia now contributing to production, we are beginning to unlock additional yields needed to support new and undersupplied SKUs, increased international sales and larger supply commitments. Importantly, increased production volumes also create the opportunity to better absorb operating fixed costs and drive margin expansion over time. Internationally, we are building on the launch of 1.91 thousand in The UK and now have the certifications in place across both facilities necessary for international export. What we consistently hear from international customers is a desire for premium Canadian cannabis that delivers quality on a consistent basis. As regulated medical markets continue to develop and grow at pace, we believe Rubicon is well positioned to leverage its brand, genetics, and cultivation expertise to capture these opportunities. Underpinning both of these growth drivers is our genetics platform, Genetics remain 1 of Rubicon's most important competitive advantages and is foundational to everything we do. It supports new product development, drives cultivation performance, strengthens consumer loyalty and allows us to optimize production across both Pacifica and Cascadia. As we continue to scale, we expect our genetics library to play an increasingly important role in both revenue growth and margin expansion. More broadly, Rubicon is entering an exciting new phase where the focus of the business is beginning to shift from building additional capacity to maximizing the value of the multiyear investments we have already made. We have cultivation facilities, premium brands, proprietary genetics, certification and operational infrastructure required to support the next phase of growth. Taken together, these drivers reinforce our confidence in Rubicon's growth trajectory, building on the momentum established in 2025 and supporting our expectations for continued growth to the second half of 26 and more significantly into 2027. With that, let's move to questions.
Operator: Thank you, ladies and gentlemen. We will now begin the question and answer session. Once again, that is *1. if you wish to ask a question. And your first question is from Neal Gilmer from Haywood Securities. Your line is now open.
Neal Gilmer: Thanks. Good morning, and congrats on the quarter. Maybe I would like to start with the Pacifica facility. If you did $500 thousand in revenues from Cascadia, means $18 million from Pacifica, which, obviously, is a significant jump from where you used to be running at that facility. I know you talked about the 20%, yield Improvements, but maybe just sort of elaborate a little bit more on how you sort of been able to tune that and get that much production out of the facility?
Margaret Ruth Brodie: Morning, Neal. Thank you. A couple of things. Yes. it is not all Pacifica biomass. We do have a vape portfolio and edibles, but then the large portion and the largest driver of our increase was specific yields. How have we done it? 18 months ago, a new team has come in. We have been working on several initiatives. They include cultivation enhancements in terms of our process upgrades. I will not go into all the details because some of them are proprietary, and really process improvements. But in addition to that, it is the genetic program that we have been working on and getting the right genetics out of and into the facility that are that consumers love that we can deliver consistent premium beautiful quality from. But also that yield very well. We have more to come from Pacifica, and we will as we get a bit further in the progress, we will update the markets, but we like to make sure that we are being clear and consistent and have it locked and loaded before we are releasing. We do believe that Pacific has the ability to increase yield even further. As I said, together with Cascadia, we have in our sites 20 thousand kilos over the next 18 to 24 months in our in our target. It will require some capital improvements. And that is what we are currently assessing.
Neal Gilmer: that is great. Thanks. that is interesting. You can get that much more, yield out of the 2 facilities. that is great. On the gross margin side, you commented that the gross margins, excluding the Cascadia pre revenue cost, 36%. I believe last quarter was 29% on the same metrics, so it is a decent increase on a quarter over quarter basis. Glenn, your comments suggested you have even some more room to grow from that. Maybe if you could just jump in a little bit more on where you think you can take it and the time frame you think you can get it there.
William Glenn Ibbott: Yeah. Thanks, Neal. Yeah. there is a few things going on here. 1, we have talked in the past about the operating leverage that we have built in the company. We have got largely particularly the way we report our cultivation costs, got largely a fixed cost. Structure in our cost of goods. I mean, there is obviously some variable cost there, but more we put on the top line, the more that, you know, our gross margin will increase simply because we are getting you know, we are spreading those costs over more volume. So just adding to the top line will drive our gross margin up. But in addition to that, you know, we have also talked about a number of initiatives to drive our gross margins Further, Margaret and I both have targets that start with a 4. You know, it takes a little bit of time to get there. But, you know, surely, some of the manufacturing efficiencies, we have got 3 automate automated pre roller machines now in production. that is all new this year. We talked about the hydrocarbon project, you know, juicing it ourselves internally, you know, we will move our margins on vapes up significantly. And then finally, then you keep hearing us harp on this, but it is so impactful to a company like ours. Is the yield initiatives. And so all of those things working together are all, you know, major point of focus for the organization. All of them working together, we do expect our gross margins to continue to improve over the next number of quarters. Know, quarter to quarter, of course, there will be some variation. You know, finally, I will say 1 thing that the commercial team's working on is just fine tuning the portfolio and just, you know, making sure we are allocating the right amount of product to the right SKUs. Absolutely. We have got lots of demand for our product. So we can be able I would say a little bit choosy in how much we allocate into certain channels and certain SKUs. And, obviously, there is quite a difference even in a flower SKU in terms of a large pack format versus smaller pack format in margin. So lots of levers, Neal. Yeah. Some of them underway and more yet to come.
Neal Gilmer: Great. Thanks, Glenn. Appreciate that detail. Maybe just the last 1 for me. You know, you are talking about very different things to improve those margins. What sort of comments on capital expenditures do you have for the balance of 2026?
Margaret Ruth Brodie: Glenn, I am going to pass that 1 over to you again.
William Glenn Ibbott: Yeah. The major projects, Neal, we mentioned hydrocarbon. that is kind of in-flight. I do not wanna talk about specifically all the projects we have got underway because I think, as Margaret said before, we do not want to give away all the secrets that we have got in terms of driving up yield and efficiencies, but, you know, they are directed in those 2 areas, yield and manufacturing efficiencies. So the focus on the CapEx. I think in terms of Cascadia, there is a bit more that is underway in terms of lighting intensity and a few things like that. But for the most part, you know, there will be ongoing fine tuning of that facility, but we have put in the significant amount of CapEx that we had expected to.
Neal Gilmer: Okay. Thanks. Appreciate it. I will pass the line.
Operator: Your next question is from Pablo Ernesto Zuanic from Zuanic And Associates. Your line is now open.
Pablo Zuanic: Thank you. Good morning, everyone. And, of course, congratulations on the quarter Margaret, maybe this is a bit of a broad question, but can you talk about what is happening in the premium flower category The Hifyre data shows some brands of your competitors falling by quite a bit. And I wonder if that is a function of, production issues, consumer taste changing, but people are allocating more product internationally. You know, there is also a macro view that the premium consumer is being squeezed, so maybe there is an impact on the category also. But you are gaining share there. But just your reading in terms of what is really happening in premium flower.
Margaret Ruth Brodie: Thank you, Pablo. Good morning. The premium category is very competitive and remains competitive, and we believe it is a very attractive segment. But you need to build trust with brand, consistent product quality, and be disciplined. A number of people and a lot of craft have come in and out, which tend to be and tend to be less consistent to build that trust. it is often reliant on certain key individuals. And rather than building a team that can consistently deliver time and time again. And I believe that is what Rubicon's done well. Whilst we are seeing total dollars down in the Canadian premium category, I believe, actually, we are starting to see more brand loyalty begin to emerge. At the early stages because there is been so much of that fluctuation that I just referred to. We are seeing the international consume patient begin to, appreciate premium in a new way. And I do think that is a draw, but I do not think that is what is what is happening in the Canadian market. I think the macro probably is impacting it. We expect to continue to grow. We are growing all of our brands in dollar terms. Not just growing share in the premium category. I do expect we look at the long term, we are gonna have 2 to 4 premium brand and super premium brands in Canada, and I expect we will be 2 of them.
Pablo Zuanic: Right. Thank you. But then just to follow-up, just to remind us in terms of, obviously, in standard pre rolls, you are doing quite well and growing there. that is what the Hifyre data shows. Are you also going to go after IPRs, or it is mostly just the standard pre rolls? Just the weekends.
Margaret Ruth Brodie: Infused pre rolls, just for those who are not aware. You know, we found a sweet spot with pre rolls. Our pre rolls are fully made with flour. We have developed and delivered a consistent format there. Consumers love it. it is a great price point. Notably, when the consumer is feeling tighter with their pocket book, a pre roll price point is very appealing. And pending the mix, we really like it from a profitability perspective. So IPRs are an important segment of the market. But it is not our bread and butter. We are always looking at improving our products, but we do expect to see continued pre roll growth. We now have 3 pre roll pre roll machines automated and operating. I could see a situation where that is expanding even further. And we are going to have more biomass available for pre rolls, so I think you will continue to see us compete heavily in that segment.
Pablo Zuanic: The consumer. And then you wanna add a couple of more to say, maybe Go ahead. Thank you. No. that is good call. Look. If I can add just 1 more obviously, congratulations on the 20% increase in yields. at Pacifica. And I know maybe this is a nitty-gritty, but is it yield what I would call like for like in terms of your current strains yielding more, or is it more about an issue of rotating strains and new strains coming in that give you more yields. And then, you know, separate from that, if I can add you can just talk about, you know, are you also making progress in terms of your terpene content? Potency if besides yields? Thank you.
Margaret Ruth Brodie: Great questions. The first question on the 20% increase, is it like-for-like, same genetic? Yes. And on our new genetics. We have seen it consistently across both. We are very pleased with that. And I believe it shows us the confidence that and demonstrates the confidence in what we will get out of Cascadia With Cascadia, we have focused on getting the quality there, making sure we can sell all of the product. Second part of your question on terpene content and potency, absolutely. Quality is a full function And so we have seen an improvement in more consistency in our terpene results. Across our entire portfolio of flower. I can even say we have had some at both Pacifica and at Cascadia. So very, very pleased with the results and the quality that is coming out of our facilities.
Pablo Zuanic: Okay. Thank you very much. that is all for me.
Margaret Ruth Brodie: Thank you, Pablo. Thank you.
Operator: Your next question is from Nicholas Gortovice from ATB Capital Markets. The Line is now open.
Analyst: Good morning, team. Congrats on the great quarter here and the strong execution. I wanted to ask about the operating expense levels and how you see that move through the next 2 quarters here and are these the levels that are gonna stabilize, or are we going to see a decline? And if so, which specific lines and what levers are you pulling on?
Margaret Ruth Brodie: Glenn, over to you.
William Glenn Ibbott: Yeah. Thanks, Nicholas. You know, where our operating expenses are right now reflect, as I said in my prepared remarks, some purpose filled purposeful sort of scaling up of the organization to be able to serve a more complex organization and serve international markets. etcetera. So, yes, there has been an increase We have tried to maintain it, and I think we have been fairly successful as a percentage of sales. You know, over the last couple of years, it is been in the mid 30% range, and, you know, this quarter was 38%, just pre Cascadia revenue. But we do think we have got our operating expenses at a level that we can maintain for a bit. Now, there is 1 caveat in there. I will get to in a second. But we have scaled it up. We think we are at the right spot to continue to grow the company without having that significantly add to our operating expenses. There are couple of lines, particularly within our sales and marketing that are a direct function of our revenue lines. And those will continue to grow. I think I pointed out in my prepared remarks sequentially, OpEx grew by about $900 thousand and if you did not hear it clearly, about 74% of that were costs that were directly related to revenue. So I am not saying that OpEx is going to continue to grow at that rate, but there is a line in there that is a direct function of revenue growth. So we have got a good platform. We think we can continue to put top-line on the P&L without growing that. So I should see a percentage of revenue coming down over the next year. And that is the plan.
Analyst: Got it. Okay. And then I also wanted to ask about these international certifications that you recently achieved. You know, what does that unlock for you in terms of new markets or new partners when you are trying to expand that international revenue base?
Margaret Ruth Brodie: Thanks, Nick. Great question. The international markets are beginning really to look towards Canada in a new way, not just for volume of product and tonnage, but looking for operators that can bring consistency, quality, and trust. And that is something that we have demonstrated consistently in the Canadian space. What the international certifications to be clear, we already have them at Pacifica. it is for Cascadia. It unlocks the ability for us to sell biomass from there into an EU GMP facility, which is effectively a port into most European countries. For us, what are we looking for in relation We are looking for multiple relationships. We do not wanna have any 1 single supplier or customer risk. Excuse me. We are actively in discussions with a number of international participants And you know, we are we are very pleased with the progress we have made so far We have said historically and today, again, reiterated we expect our 2026 revenues to be about 10% from international sales. And I expect that to expand. We are still looking at the numbers for 2027. Right now, we have got we are in we have got agreements into 2 international markets, 1 of which is branded. I expect by the end of the year, we will have up to 4 and be looking beyond that for where we do our next branded play. Amazing. Okay. Those are my only questions. Congrats again. Thanks, Nick. Thank you.
Operator: And your next question is from Josh Felker from CB1 Capital. Your line is now open.
Josh Felker: Hey. Good morning. Margaret and Glenn. Thank you for taking the questions. Just trying to parse out where demand is. Interested in how large the current UK market opportunity is. We look at the current revenue base as the expected revenue base going forward, and you will kinda grow with the market as it grows from here? Or do you think that there is additional opportunity for you to scale in the U. K. Market and maybe capture some of that market share and grow irrespective of market growth?
Margaret Ruth Brodie: Thanks, Josh. Good morning. The U. K. Market is a very exciting 1. It is a medical patient that understands the value of premium, and we have seen that already in our initial launch. We are on approximately 60% of the platforms in The UK, and we are expecting continued strength in demand in that market. I think the question is how fast are the patients growing? The patient base growing faster than I think anybody anticipated. So I think we are going to plan to scale with that. We obviously want to manage so that we are we as I said earlier, we do not want 1 single customer. Of the 10% of our international revenue internationally, About 1/3 of it is going to The UK. I expect that will that will hold about the same, but the percentage will grow of our business next year.
Josh Felker: Super. Thank you for that. And then maybe a question for Glenn. Just because, synergy is kind of a black box, in how we all view ROI, so maybe a tricky question. But should be pretty simple. What is the ROI from capital deployed internally? And then maybe to simplify it for 1 specific narrative, to increase the yields by 20% at Pacifica, how much did that cost? And much will it cost to replicate that strategy at Cascadia?
William Glenn Ibbott: Yeah. I understand what you are asking the question. it is not a straightforward answer because there is so many different things you have to do to tune in a facility. So the increase of the 20%, as Margaret described earlier, you probably get from her comments was a combination of some I would say, CapEx, very modest CapEx to make some changes within the grow bays, but then also just sometimes growing techniques or the medium, the changes in, you know, the formulas, etcetera. So I you know, I cannot tell you what drove, say, 10% of the increase and what drove the other 10%. it is just a mixed bag. As we look forward then, there are opportunities. I mean, they are modest CapEx investments and larger CapEx investments, and we are doing the business cases on all of them. To determine, you know, how to stage them what makes sense, and again, sometimes when to do them. So I cannot give you a direct answer because driving yield improvements in particular is just a combination of a bunch of factors and sometimes it does not cost much at all.
Josh Felker: No. That helps changes within the grow bays kind of gives me an idea that maybe it was not fully CapEx focused, maybe it was some operational changes. So, yeah, I appreciate that, Glenn. And maybe to sneak in 1 more question. Glenn, you mentioned you are fine tuning the portfolio. Allocating the right product into the right SKUs. Could you just give us a little more detail on the strategy there along with any potential benefits you expect to derive?
William Glenn Ibbott: Yeah, I mean, I think know, within the particularly within the domestic adult use industry, province to province, there is pricing differences, within a particular product, different product sizes for, you know, a 28-gram bag is a significantly different profit profile than the 3.5-gram. So at that. You know, we are fortunate that we have got demand across many of our SKUs, and there is reasons to serve some. There may be a product or a province that is a little less profitable, but there is long term strategic reasons to continue to serve it. So I guess what I am really getting at is just balancing all of those considerations and making sure that we are getting the most out of a gram of cannabis, while continuing to serve our really important customers and budtenders and final consumers and continue to, you know, stand behind the value of the brand. You know, there is some trade offs as we go through that. So that is all I am getting at is just some of those decisions, and they can make a few points of difference on your gross margin.
Josh Felker: Yep. Absolutely. Definitely understand that narrative. Okay. Thank you, Margaret. Thank you, Glenn. Have a great day.
Operator: Thank you. There are no further questions at this time. I will now turn the call back over to Margaret for the closing remarks.
Margaret Ruth Brodie: Thanks for joining us today. We remain Canada's leading premium cannabis company, and we continue to invest with discipline, to expand our production platform strengthen our brands and capture growing demand across both domestic and international markets. We are encouraged by the progress made during the second quarter. Record revenue, continued market share gains and the successful turn on of Cascadia reinforce our confidence in the investments we have made and the opportunities ahead. While we still have some work to do in continuing to optimize Cascadia, we remain focused on execution, and we believe we are well positioned to drive further growth opportunities in margin, revenues and cash flow through the second half of 26 and beyond. Thank you again for your continued interest in Rubicon, and I would like to end these calls with my personal recommendation, Today, it is our BC Organic Tangerine Sunrise under Simply Bare, the brand. it is a fantastic new genetic, and it is a great example of innovation coming out of our genetics program. Thank you.
Operator: That concludes our conference call for today. Thank you all for joining. You may now disconnect your lines.