Green Thumb Industries (CNSX:GTII) reported second-quarter 2026 revenue of $307 million, up 5% from a year earlier, while normalized EBITDA totaled $84.3 million, representing a 27.5% margin. The cannabis operator said it generated $29 million in operating cash flow and ended the quarter with $284 million in cash.
GAAP net income was $4.9 million, or $0.02 per basic and diluted share, compared with a net loss of $0.6 million, or $0.01 per share, in the prior-year quarter. Chief Financial Officer Matt Faulkner said the current-year result included some benefit from Section 280E tax relief for medical cannabis, while the prior-year period included a loss associated with an intellectual-property sale.
Margins pressured by licensing fees and workforce investment
Second-quarter gross profit was $138 million, or 45% of revenue, down from $146 million, or 50% of revenue, a year earlier. Faulkner attributed the decline primarily to $17.5 million in brand licensing fees incurred during the quarter. Excluding those fees, he said gross margin showed a slight improvement from the prior year.
Selling, general and administrative expenses rose to $118 million, or 38% of revenue, from $107 million, or 36% of revenue, in the second quarter of 2025. The increase was driven by compensation and benefit costs, as well as expenses related to opening, acquiring and operating retail stores.
Normalized operating costs increased to approximately $84 million from $74 million a year earlier. Green Thumb said the higher costs reflected deliberate adjustments to its compensation structure and other targeted business investments. President Anthony Georgiadis said the company made incremental investments in its team during the quarter, which weighed on near-term EBITDA margins.
Looking ahead, Faulkner said Green Thumb expects third-quarter revenue to be sequentially flat because of the pricing environment. He added that fixed licensing fees are expected to remain consistent in the third quarter relative to the second quarter.
Retail and wholesale growth offset by price compression
Retail revenue grew just under 4% year over year, supported by Minnesota, Connecticut and Florida. Same-store sales across a base of 103 locations declined about 1%, compared with a 0.5% decline in the first quarter.
Georgiadis cited price compression in Massachusetts, New Jersey and Pennsylvania as a continuing headwind. He said the company has sought to manage the environment through product merchandising, pricing actions, brand strength and its omnichannel platform.
Consumer packaged goods gross revenue also increased just under 4%, led by Minnesota, Ohio, New Jersey and New York. Green Thumb said it held the No. 1 market-share position in Illinois, Pennsylvania, Ohio, Maryland and Minnesota.
Following the end of the quarter, the company began adult-use sales at its previously medical-only RISE Paramus dispensary in New Jersey and opened RISE Hanover in Pennsylvania. Its retail portfolio now exceeds 120 stores.
Green Thumb deployed $20 million into the business during the quarter, including roughly $5 million for retail store relocations and buildouts in Pennsylvania, Virginia and Florida, and $15 million for wholesale capacity expansion and maintenance. The company maintained its full-year 2026 capital-expenditure outlook of approximately $80 million.
Virginia and Texas identified as growth opportunities
Management highlighted Virginia and Texas as potential near-term growth markets. Virginia’s adult-use cannabis legislation is scheduled to take effect July 1, 2027. Green Thumb is one of five licensed medical operators in the state, where it operates six RISE dispensaries and two cultivation facilities.
Georgiadis said the company is assessing whether additional cultivation capacity will be needed ahead of the adult-use launch. He said Green Thumb expects supply constraints when the market opens, although the duration may depend on potential new licenses, consumer demand and the effect of hemp-policy changes.
In Texas, Green Thumb received a conditional license under the Compassionate Use Program on April 1. During the second quarter, the company focused on background checks, state paperwork, real estate planning and its approach to entering the market. Georgiadis said Texas could represent significant long-term upside if the state expands its program.
Management also discussed an anticipated federal ban on intoxicating hemp products, currently set to take effect Nov. 12. Kovler said the company believes regulated cannabis operators could benefit if demand shifts away from unregulated hemp products. He pointed to Ohio, where he said the regulated market has grown more than 10% following the state’s own ban on intoxicating hemp.
U.S. listing preparations and RYTHM consolidation
Kovler said Green Thumb has registered certain state-licensed medical cannabis operations with the Drug Enforcement Administration and that site inspections have begun. He said the company is preparing for a potential U.S. exchange listing and has held discussions with both major exchanges.
The company also discussed a proposed accounting change involving RYTHM Inc. RYTHM shareholders are scheduled to vote Aug. 10 on a proposal that, if approved, could result in Green Thumb consolidating RYTHM into its financial statements as early as Oct. 10, 2026. Management said the potential change would not alter the companies’ economics but would change Green Thumb’s reported financial presentation from the current equity-method treatment.
Green Thumb continued its share-repurchase program during the quarter, buying the equivalent of roughly 8 million shares at an average price slightly above $6 per share. Since the fourth quarter of 2023, the company has repurchased about 29.5 million shares at an average price of $7 per share, representing more than $200 million returned to shareholders, according to Kovler.
About Green Thumb Industries (CNSX:GTII)
Green Thumb Industries, a multi-state cannabis cultivator, processor and dispensary operator, is dedicated to providing access to safe and effective cannabis nationwide while giving back to the communities in which they serve. As a vertically integrated company, GTI manufactures and sells a suite of branded cannabis products including flower, concentrates, edibles, and topicals. The company also owns and operates a multi-state chain of retail cannabis stores called RISE™ dispensaries. Headquartered in Chicago, Illinois, GTI has seven manufacturing facilities and licenses for 50 retail locations across seven U.S.
