Green Thumb Industries Inc.

Second-quarter revenue was $307 million, up 5% year over year. Gross profit was $138 million, or 45% of revenue, compared with $146 million, or 50% of revenue in the prior year; the decline was driven by $17.5 million of brand licensing fees. Normalized EBITDA was $84.3 million, or 27.5% of revenue, versus 28.2% a year ago. GAAP net income was $4.9 million, or $0.02 per basic and diluted share, versus a loss of $0.6 million, or $0.01 per share last year. Cash flow from operations was $29 million, and the company ended the quarter with $284 million in cash. For the third quarter, management expects sequential revenue to be flat due to pricing pressure; licensing fees should be consistent with Q2 because Q2 was the first full quarter under the fixed fee structure. Full-year 2026 CapEx guidance remains approximately $80 million.

Ben Kovler framed the quarter as another step in a long-term buildout of a cash-generating cannabis business that is preparing for federal change without depending on it. He said medical cannabis rescheduling is real progress, that Green Thumb is ready for uplisting and a broader federal shift, and that the company is engaging capital markets from a position of strength. His tone was confident and strategic, emphasizing brand building, balance-sheet discipline, share repurchases, and readiness for what he called the next era of cannabis.

Matt Faulkner focused on the quarter’s financial bridge: revenue grew 5% year over year, gross profit was $138 million, SG&A was $118 million, and normalized EBITDA was $84.3 million. He said gross margin was pressured by $17.5 million of brand licensing fees, while SG&A rose because of compensation investments and costs tied to opening, acquiring, and operating stores. He also noted $20 million of quarter CapEx, including $5 million for retail and $15 million for wholesale, and said the company remained committed to financial flexibility to invest opportunistically while managing risk.

Analysts pressed on gross margin trends, with management saying pricing pressure remains the main uncertainty but that the fixed licensing fee structure should keep licensing fees consistent in Q3. Questions about Virginia centered on supply constraints and hemp’s impact; management said the market could be supply-constrained at launch, but the duration depends on hemp policy and how quickly additional licenses are issued. On uplisting and RYTHM consolidation, management said a U.S. exchange listing is being prepared for as rescheduling unfolds, while the RYTHM consolidation is an accounting outcome if shareholders approve the change, not a buyout. Analysts also asked about M&A in Florida and Georgia; management said Florida will mainly see new store openings, while Georgia remains under review through its investment in TheraTrue.