Green Thumb Earnings + Call Notes
U.S. cannabis leader shares results and looks ahead.
$300.2M Revs; est. $297.8M
$93.5M AEBITDA; est. $77.1M
$143.6M GP; est. $138.5
$22.4M OI; est. $37.7M
47.9% GM; est. 46.5%
$0.07 EPS; est. ($0.01)
$76m CFFO
Repurchased 6m shares
Subsequent to Quarter End
Conditionally awarded a Texas Compassionate Use Program license for vertically integrated operations.
Repurchased approximately 7.4 million additional Subordinate Voting Shares, bringing 2026 year-to-date repurchases to approximately 13.4 million Subordinate Voting Shares for approximately $77.7 million. Since initiating its share repurchase programs in September 2023, the Company has repurchased approximately 29.0 million shares for approximately $200.0 million.
Submitted registration applications with the U.S. Drug Enforcement Administration for certain state-licensed medical cannabis operations following the federal rescheduling of medical cannabis to Schedule III under the Controlled Substances Act.
Management Commentary
“The Green Thumb team delivered a strong start to 2026, with first quarter revenue of $300 million, Normalized EBITDA of $94 million and cash flow from operations of $76 million.
The recent federal action to reschedule medical cannabis from Schedule I to Schedule III is a historic step forward for our business, for investors, and for the country. Our conviction in Green Thumb remains as strong as ever, as reflected in the approx 13.4 million shares we have repurchased so far this year.
As the landscape around us continues to evolve, our team remains focused on disciplined execution and building for the future.” Chairman/CEO Ben Kovler
“With medical cannabis now rescheduled, the resulting Section 280E relief for the medical portion of our business creates meaningful flexibility to reinvest in our operations, our people, and the communities we serve.
Consumer demand for THC continues to rise, and rescheduling helps create a more practical framework for companies like Green Thumb to meet that demand responsibly while continuing to grow and scale our business.
Our team is ready for this next chapter in cannabis, and we look forward to continuing to serve patients and consumers while keeping momentum at the federal level toward broader reform and legalization.” President Anthony Georgiadis
Call Notes
Published 2025 annual report, centered around theme of “chance favors only the prepared mind.”
Built GTBIF to be prepared to listen to the consumer and act w/ discipline when opportunities arise.
Protecting balance sheet, staying disciplined, building quality brands that resonate w/ consumers.
Retail footprint spans 14 markets and 114 stores.
Q1 revs up 7.5% YoY vs. 1% decline for the industry.
Ended quarter w/ record $344m+ cash.
Spent $80m buying back 14.4m shares so far this year.
THC demand continues to rise, consumers becoming more sophisticated.
Consumers coming back to the brands they trust.
GTBIF products led key categories in ’25 and continues to lead in ‘26.
Rythm the #1 flower brand nationally.
Rythm Animal Face strain is #1 strain nationally.
Dog Walkers is the #1 uninfused pre-roll in the US.
Reaching consumers across price points and segments.
4 key areas for GTBIF:
Future growth.
Disciplined capital allocation.
Strategic investment in Rythm.
Federal rescheduling
GTBIF rewarded license to operate in TX.
Watching state closely, operations will be years out.
^ History of winning when enter markets this way.
Growth in PA MN VA.
Over $300m cash, less than $200m debt.
$150m share repurchase program.
^ have repurchased approx. $200m (or 12/13% of the company).
Creating value and not overreaching on M&A.
Current environment has GTBIF cautious.
^ not chasing deals, but open to opportunities.
View Rythm as a strategic asset ; believe structure gives GTBIF future optionality
Growing beverage business in Rythm.
Rythm beverage business reflects strong consumer demand for THC.
Medical represents approx. 50% of business.
GTBIF submitted application to DEA for medical license.
Believe we are seeing beginning of federal reform and change in the industry.
$300m revs and $94m normalized EBITDA.
^ 7% YoY top line growth.
Strong results in MN.
^ solid operating performance across OH MD VA IL NY NJ.
$19m capex in Q1.
^ store relocations in PA OH FL.
^ cult/manufacturing investments in OH.
Expect FY’26 capex of $80m.
^ could shift depending on VA AU.
Grew CPG market share in almost every market YoY.
#1 share position in IL PA OH MD MN.
Remain focused on optimizing A/U opps in MN PA VA.
Strong performance in MN A/U program, market itself is supply constrained.
Regulatory structure preventing GTBIF on getting additional supply into market.
^ hope to remedy this issue by YE
Hoping VA A/U finally gets done.
Broad bipartisan recognition of PA A/U benefit.
^ path to get across the line in ’26 remains murky
’26 outlook – remain cautiously optimistic.
Headwinds in price compression, consumer discretionary spending pressure, regulatory uncertainty.
^ particularly around closure of farm bill loophole.
^ making it difficult to allocate capital w/ long term lens).
Doubling down on operational discipline, brand strength, scale, balance sheet.
THC demand growing globally.
Putting consumer at center of everything.
Summer concert line up in NY Chicago and Philadelphia.
Revenue up 7% YoY.
^ driven by A/U sales launch in MN and CPG growth in key markets.
Expect Q2 revs to be flat to down slightly due to pricing environment.
$144m GP, 48% margin vs. 51% margin in YoY period.
SG&A of $103m, 34% margin vs. 36% margin in YoY period,
SG&A excluding D&A and 1-time costs and SBC of approx. $73m vs. $69m YoY.
$93.5m normalized EBITDA.
+10% YoY.
$13.4m gaap net income vs. $8.3m in YoY period.
$345m cash.
Generated $76m OPCF.
Built to thrive in any operating environment.
Rythm investment provides optionality.
Very familiar w/ listing standards, which led to licensing adjustment.
Want to be fully compliant w/ NASDAQ.
A lot of hemp being sold in TX as we speak.
^ legal sales are nothing compared to hemp sales in-state.
Will have to wait and see TX regulations stick.
^ hard to make big capital decisions when there’s already consumer access in state.
^ difficult to compete w/ hemp market within the context of state regs.
Watching how hemp regulations evolve.
^ getting ready to play ball if/when regulations move in right direction.
Drug policy act against cannabis was a racist regulation set by Nixon admin.
Extremely price sensitive on the buyback.
^ if price comes back, still have appetite.
Given what’s happening in US and int’l, there are other opportunities to deploy capital.
Hemp sales in liquor stores, target, united center, etc.
If that doesn’t make people excited about THC consumption a decade from now, you need to look harder
Alcohol sales are shrinking.
If hemp goes away, will be good for cannabis SSS.
^ believe a lot of cannabis being sold in each market as hemp.
May be the beginning of flattening of price compression as hemp begins unwind.
Only a few markets where GTBIF has excess capacity.
Want to continue to build brands.
EU is a place where GTBIF would like to do that at some point in time.
Looking at all opportunities available.
If regs play out in a way that export is allowed, will look at that extensively.
Don’t know about DEA strategy going forward.
^ not a lot of guidance / direction for that process.
Rescheduling brings a lot of institutional investors now that there is federal clarity on what is going to happen.
Starting to have new conversations, people are looking at the space.
Looking at all states for M&A opportunities.
^ to get more vertical and fill out the business in a few markets to grow share.
/end
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CB1 has a position and nothing contained herein should be considered advice.