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Green Thumb Industries — Third Quarter 2026 Earnings Summary

GTBIF

  • Financial Performance:

    • Total revenue reached $324.4 million, an 11.3% increase year-over-year compared to $291.4 million in the prior year period.
    • GAAP net loss was $4.8 million ($0.02 per share), a reversal from a net income of $23.3 million ($0.10 per share) in the prior year.
    • Normalized EBITDA was $89.4 million, representing 27.6% of revenue, up from $80.2 million (27.5% of revenue) in the prior year.
    • EBITDA was $59.3 million (18.3% of revenue), down from $66.8 million (22.9% of revenue) in the prior year.
    • Gross profit was $146.8 million (45.2% of revenue), compared to $144.0 million (49.4% of revenue) in the prior year; excluding $15.8 million in RYTHM brand licensing fees, gross profit would have been $162.5 million (50.1% of revenue).
    • Selling, general, and administrative expenses totaled $121.7 million (37.5% of revenue), up from $107.3 million (36.8% of revenue) in the prior year.
    • Cash flow from operations was $58.3 million.
    • Cash and cash equivalents totaled $316.0 million at quarter end.
    • Total debt outstanding was $277.3 million, including $177.0 million of senior debt.
    • Income tax expense was $28.1 million, down from $49.1 million in the prior year.

  • Guidance and Future Outlook:

    • Management indicated plans to weigh growth investments, acquisitions, and buybacks, prioritizing long-term returns for stakeholders.
    • The company is laying the groundwork for the next phase of growth, with adult-use sales in Virginia expected to begin in July 2027.
    • The company is advancing work toward entry in Texas under a conditional license.
    • Management expressed confidence in its position amidst industry changes, including federal rescheduling of medical cannabis to Schedule III and pending actions on scheduling and taxation.

  • Business Segments and Product Lines:

    • Retail revenue increased 10.1% year-over-year.
    • Comparable retail sales increased 3.0% year-over-year, the first growth since the third quarter of 2024.
    • Consumer Packaged Goods (CPG) revenue increased 16.0% year-over-year, driven by the launch of adult-use sales in Minnesota and growth in Illinois, New Jersey, New York, and Ohio.
    • Added six RISE Dispensaries during the quarter in Florida, Nevada, and Pennsylvania.
    • Expanded to 27 Florida retail locations with openings in Cape Coral, Belleview, and Mulberry.
    • Received DEA registrations for certain state medical cannabis licenses following the federal rescheduling of medical cannabis to Schedule III.

  • Market and Competitive Landscape:

    • Revenue growth was driven by retail sales in Minnesota (adult-use launch on September 17, 2025) and continued growth in Florida, New Jersey, New York, Ohio, and Virginia.
    • Growth was partially offset by price compression and increased competition in select markets.
    • The company faces competition from the illicit market and hemp products compliant with the Farm Bill.

  • Risks and Challenges:

    • Cannabis remains illegal under U.S. federal law, and enforcement could change.
    • Future state regulation remains uncertain, including rules for hemp-derived THC.
    • The company faces intense competition and price compression in select markets.
    • The company is subject to unfavorable tax treatment and restricted access to banking services.
    • Consolidation of RYTHM beginning October 10, 2026, will result in non-comparable results for the fourth quarter versus prior periods.

  • Management Commentary and Tone:

    • CEO Ben Kovler stated the quarter reflects the durability of the business model, noting an 11% revenue growth and maintained Normalized EBITDA margin despite pricing pressure.
    • President Anthony Georgiadis highlighted that both retail and CPG businesses gained momentum, with comparable sales returning to growth.
    • Management emphasized a focus on building brands, operating with financial discipline, and staying patient while moving decisively as the market develops.

  • Other Key Points:

    • Entered into an amendment with RYTHM, Inc. on August 10, 2026, removing beneficial ownership limitations on certain convertible notes and pre-funded warrants, effective October 10, 2026, triggering consolidation of RYM.
    • The Board of Directors authorized the continuation of the share repurchase program for an additional 12 months, with up to $50 million available through September 22, 2027.
    • Since 2023, the company has repurchased approximately 29.5 million shares for $203.4 million, including over $80 million in 2026.
    • Total other income (expense) decreased to ($3.7) million from $36.2 million in the prior year, primarily due to the absence of a gain on the sale of intellectual property and hemp business to RYTHM that occurred in the prior year.