Goodness Growth Holdings, Inc.

Revenue excluding discontinued operations in New York increased 45% year over year to $21.1 million. Management said gross profit margin and operating margin both improved versus Q1 last year, but did not give those percentages on the call. Same-store sales rose approximately 36%, largely due to Maryland. In Maryland, state-published data showed total market sales up about 131% year over year in Q1, with Goodness Growth’s retail revenue up 191% and wholesale revenue up 114%, for total growth of 160% year over year; on a sequential basis the Maryland market was down about 1% and the company was up about 5%. For guidance, management still expects Minnesota adult-use to launch in March 2025, expects to close the New York divestiture before June 30, and expects to secure a longer-term extension on the senior secured loan in Q2 after a temporary extension to June 14.

Josh Rosen focused on three themes: the company’s improving operating execution, the strategic importance of Minnesota and Maryland, and the litigation with Verano. He said the business is on a stronger independent path, with the CREAM and FIRE strategy improving product quality, inventory movement, and cash generation. His tone was confident and combative on the lawsuit, saying the company believes the facts support its case and that a full trial may be needed, while also emphasizing disciplined capital use.

Josh Rosen, serving as interim CFO, did not walk through a detailed balance-sheet or cash flow table, but he did flag an updated financing timeline: the credit facility maturity was extended to June 14, and management expects a longer-term extension in Q2. Amber Shimpa added that Q1 EBITDA included a $1.3 million gain on Grown Rogue warrants, which are marked to market each period and can create volatility. She also said the company will file for tax refunds with the IRS for tax years 2020 through 2022 in Q2, and that the balance sheet reflects a $12.1 million income tax receivable and a $26.1 million uncertain tax position liability tied to the 280E position.

Analysts focused heavily on the Verano litigation, especially timing, settlement prospects, and how much of the underlying damages math could be public. Management said it is difficult to predict timing, but suggested the cadence should become more frequent and that the process is more likely measured in months than years; they also said they expect to take the case to trial if needed, while remaining open to a settlement at the right time. Another analyst asked about Minnesota adult-use timing, and management reiterated it is still targeting a March 2025 launch with no change from earlier expectations. Questions also covered the hemp-derived beverage launch; management said the arrangement is a co-packing relationship where Goodness Growth owns the brand and recognizes revenue, but they are keeping expectations modest and treating it as a capital-light, low-risk marketing and brand-building effort.