second quarter 2026
Filed Aug 4, 2026Second-quarter revenue increased 4.6% to $306.7 million, while gross margin and EBITDA margin declined amid price compression, licensing fees, and higher compensation costs.
Revenue grew and the Company returned to GAAP net income, but gross margin declined to 45.0% of revenue, EBITDA declined to $53.1 million, and normalized EBITDA margin declined to 27.5% of revenue.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $306.7 million | – | up 4.6% |
| Retail revenueGAAP | increased 3.6% | – | increased 3.6% |
| Comparable salesGAAP | decreased 1.1% | – | decreased 1.1% |
| Consumer Packaged Goods gross revenueGAAP | increased 3.7% | – | increased 3.7% |
| Gross profitGAAP | $137.9 million | – | – |
| Gross marginGAAP | 45.0% of revenue | – | – |
| Selling, general and administrative expensesGAAP | $117.9 million or 38.4% of revenue | – | – |
| Total other expenseGAAP | $4.0 million | – | – |
| Income tax expenseGAAP | $12.5 million | – | – |
| Net income attributable to the CompanyGAAP | $4.9 million | – | – |
| Basic earnings per shareGAAP | $0.02 per basic share | – | – |
| Diluted earnings per shareGAAP | $0.02 per diluted share | – | – |
| EBITDAnon-GAAP | $53.1 million or 17.3% of revenue | – | – |
| Normalized EBITDAnon-GAAP | $84.3 million or 27.5% of revenue | – | – |
| Licensing fees excluded from Normalized EBITDAnon-GAAP | $15.8 million | – | – |
| Non-cash stock-based compensation excluded from Normalized EBITDAnon-GAAP | $10.6 million | – | – |
| Other non-operating adjustments excluded from Normalized EBITDAnon-GAAP | $4.8 million | – | – |
| Cash flow from operationsGAAP | $29.0 million | – | – |
| Current assetsGAAP | $624.3 million | – | – |
| Cash and cash equivalentsGAAP | $283.6 million | – | – |
| Total debt outstandingGAAP | $283.0 million | – | – |
| Basic weighted average shares outstandingGAAP | 221.0 million shares | – | – |
| Diluted weighted average shares outstandingGAAP | 222.8 million shares | – | – |
Capital returns
- Repurchased the equivalent of approximately 7.9 million Subordinate Voting Shares for $48.3 million.
- Average price of $6.11 per share.
- To date, the Company has repurchased the equivalent of approximately 29.5 million Subordinate Voting Shares for $203.4 million, with an average price of $6.90 per share.
- The Company's remaining authority to repurchase Shares is $62.3 million, available through September 22, 2026.
What drove it
- Revenue growth was driven primarily by retail sales in Minnesota following the launch of adult-use sales on September 17, 2025.
- Continued growth in existing markets, particularly Connecticut, Florida, and Ohio, supported revenue.
- Consumer Packaged Goods gross revenue growth was primarily due to adult-use sales in Minnesota and growth in New Jersey and Ohio.
- The reduction in other expense was primarily attributable to the prior-year loss on sale of Green Thumb's incredibles intellectual property and hemp business to RYTHM, Inc.
- Income tax expense declined primarily because the Department of Justice's final order reclassifying state legal medical cannabis to Schedule III resulted in the end of Internal Revenue Code Section 280E to portions of the business.
Concerns
- Price compression and increased competition partially offset growth.
- Comparable sales decreased 1.1% versus the prior year on a base of 103 stores.
- Gross margin declined primarily due to RYTHM brand licensing fees incurred in the current period and price compression.
- Selling, general and administrative expenses increased primarily because of increased compensation and benefits costs tied to planned retention and execution changes.
- EBITDA margin and normalized EBITDA margin were lower than the comparable prior-year period.
What to watch
- Adult-use sales in Virginia are authorized to begin July 1, 2027.
- RISE Dispensary Paramus in New Jersey launched adult-use sales on July 13, 2026.
- RISE Dispensary Hanover in Pennsylvania opened on July 31, 2026.
- Management's ability to sustain wholesale growth and brand share while navigating price compression and competition.
- The effect of increased investment in the team on selling, general and administrative expense and EBITDA margins.
Balance sheet and cash flow
- Cash and cash equivalents of $283.6 million as of June 30, 2026.
- Current assets were $624.3 million as of June 30, 2026.
- Total debt outstanding was $283.0 million.
- Cash flow from operations of $29.0 million.
Analysis
Green Thumb reported second-quarter revenue of $306.7 million, up 4.6% from the prior-year period. Growth was led by Minnesota retail sales following the launch of adult-use sales, alongside continued growth in Connecticut, Florida, and Ohio. The Company also cited Consumer Packaged Goods growth in Minnesota, New Jersey, and Ohio. However, overall retail revenue increased 3.6%, while comparable sales decreased 1.1% versus the prior year on a base of 103 stores, reflecting the persistent pricing pressure and increased competition described by management.
Profitability weakened at the gross-profit and operating-earnings levels. Gross profit was $137.9 million, or 45.0% of revenue, compared with $146.3 million, or 49.9% of revenue, in the prior-year period. Management attributed the margin decline to RYTHM brand licensing fees and price compression. Selling, general and administrative expenses increased to $117.9 million, or 38.4% of revenue, from $106.8 million, or 36.4% of revenue, as the Company increased compensation and benefits costs to support retention and execution.
EBITDA was $53.1 million, or 17.3% of revenue, compared with $69.1 million, or 23.6% of revenue, in the comparable prior-year period. Normalized EBITDA increased to $84.3 million from $82.7 million, but its margin declined to 27.5% of revenue from 28.2% of revenue. The normalized measure excludes licensing fees of $15.8 million, non-cash stock-based compensation of $10.6 million, and other non-operating adjustments of $4.8 million. GAAP net income attributable to the Company was $4.9 million, compared with a net loss of $0.6 million, aided by lower other expense and a reduction in income tax expense.
Liquidity included cash and cash equivalents of $283.6 million, current assets of $624.3 million, and total debt outstanding of $283.0 million. The Company generated cash flow from operations of $29.0 million and repurchased the equivalent of approximately 7.9 million Subordinate Voting Shares for $48.3 million during the quarter. The remaining repurchase authority was $62.3 million, available through September 22, 2026. No forward financial guidance was provided in the filing.
The reported period presents a split picture: revenue and normalized EBITDA dollars increased, and the Company returned to GAAP profitability, but comparable-store demand, gross margin, EBITDA margin, and normalized EBITDA margin moved lower. Investors should focus on whether Minnesota adult-use sales, wholesale expansion, recent New Jersey and Pennsylvania developments, and the future Virginia adult-use market can offset the pressure from pricing, competition, licensing fees, and the Company's higher investment in its team.
Management, verbatim
The Green Thumb team continues to drive topline growth despite persistent pricing pressure in many of our key markets.
Ben Kovler, Founder, Chairman and Chief Executive Officer
We continued to lean into our wholesale business to support revenue growth, and we are pleased with the results.
Anthony Georgiadis, President
We also increased investment in our team during the quarter, which shows up in selling, general and administrative expense and weighed on EBITDA margins in the near term.
Anthony Georgiadis, President
Not in the filing
stated, not guessed- Forward financial guidance
- Prior outlook for comparison
- Segment revenue in dollars for retail and Consumer Packaged Goods
- Operating income
- Free cash flow
- Capital expenditures
- Dividend information
- Income tax rate
- Prior-quarter comparisons for reported metrics
- Prior-year cash, debt, current assets, and cash flow from operations
- Segment operating profit or margin
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.