Jushi Earnings + Call Notes
U.S. canna co. has leverage to new adult-use states.
$71.3M Revs; est. $66.2M
$13.3M AEBITDA; est. $11.7M
$31.5M GP; est. $29.7M
44.2% GM; est. 44.8%
($7.3M) NI; est. ($14.9M)
($0.04) EPS; est. ($0.05)
Revenue Increased 10% Year-over-Year to $71.3 million, Reflecting Growth Across Both Retail and Wholesale Channels
Wholesale Revenue Increased 68% to an All-Time Quarterly Record of $9.4 Million
Record Quarterly Revenue in Virginia Reinforces the Company’s Position Ahead of Adult-Use Sales
Management Commentary
“Our second quarter results reflect solid execution across the business, with revenue increasing 10% year-over-year to $71.3 million with growth across both our retail and wholesale channels,” said Jim Cacioppo, the Company’s Chairman and Chief Executive Officer. “Wholesale revenue increased 68% to an all-time quarterly record of $9.4 million, supported by higher production volumes, improved product quality, and expanded distribution. These results demonstrate the progress we are making in strengthening our operational performance, increasing product availability and expanding our ability to serve both our retail network and wholesale partners.
Retail revenue increased 4% year-over-year to $61.9 million, with retail units sold increasing 11.4% despite continued pricing pressure across our markets. Ohio was the largest contributor to retail growth, benefiting from our expanded store base and the continued maturation of our retail network. Virginia also delivered record quarterly revenue, driven by strong same-store performance across our six dispensaries. These results reinforce the strength of our operating platform and the investments we have made in cultivation, product quality, and execution.
The quarter also included two important developments that we believe materially improve Jushi’s long-term outlook. The federal rescheduling of state-licensed medical marijuana and the resulting elimination of Section 280E for qualifying activities reduced our income tax burden and resulted in a discrete tax benefit of $6.4 million. In Virginia, the enactment of adult-use legislation creates a significant growth opportunity beginning July 1, 2027.
We are advancing our cultivation and processing plans, evaluating disciplined financing alternatives, and leveraging a retail infrastructure that was built with adult-use demand in mind. As we move through the second half of the year, we remain focused on expanding distribution, optimizing our retail portfolio, maintaining liquidity, and deploying capital toward opportunities that can generate attractive long-term returns.”
Call Notes
Q2 revenue up $6.3m or 9.6% YoY/
Q2 included 2 milestones.
^ record third party wholesale revenue, record wholesale revenue in VA
Wholesale revs up 68% YoY to $9.4m.
First time exceeded $9m in wholesale in a single quarter.
Wholesale driven by improved availability and quality, as well as expanded distribution.
Saw revenue growth in all wholesale markets, except for NV (flat).
MA led wholesale growth, third party sales up 2.5x prior year levels.
OH PA VA wholesale all performed strongly, up 1.5x prior year levels.
Continued expansion of wholesale distribution network.
^ expanded into 20 new dispensaries, 8 in PA, 7 in MA
Ongoing improvements in product quality.
^ shifting sales mix towards higher quality products.
Flower Foundry delivered mid-to-high single digit growth in revenue + units.
Broadened product assortment, added 501 unique new SKUs during the quarter; increasing assortment by 19% YoY
Continue to improve product quality, consistency.
Wholesale offsetting pricing pressure in retail channel.
Retail revenue up 4% YoY ; units sold up 11.4% YoY.
Retail $ASP declined due to pricing pressure and promo activity.
OH was largest contributor to retail growth, added 3 dispensaries since end of Q1 ‘25.
Believe hemp restrictions are benefitting OH state legal market.
Weekly retail sales up 10% since OH hemp law took effect.
VA record quarterly revenue, driven by strong SSS performance across 6 store network.
VA strength partially offset by lower retail revenue in MA IL PA NV.
Performance around 4/20 holiday, SSS units up 11% and SSS up modestly YoY.
44.2% Gross Margin ; broadly consistent w/ prior year periods.
Margin performance reflects lower production costs on JUSHF products, along w/ operational efficiency realization.
GP benefitted from contribution of new dispensary openings in OH since end of Q1 ‘25.
Adj EBITDA of $13.3m or 18.7% margin ; vs. $13.7m or 21.1% margin in prior year quarter.
Recognized 1 time income tax benefit of $6.4m due to reassessment of certain deferred tax benefits, based on change of rescheduling.
Medical cannabis rescheduling reduced income tax expense and changed UTP by approx. $3m during Q2
Estimate rescheduling change could reduce income tax / UTP by $9m in 2H ‘26.
Waiting on guidance on retroactive tax relief.
Approx $50m of UTP and interest could be released if tax guidance goes back to 2023.
Believe VA represents a significant LT growth opportunity.
VA market today is $180m annual sales.
VA A/U ests suggest $2-3b illicit/unregulated market outside of regulated system.
$10m VA A/U conversion fee ; paid over 3 year period
VA A/U framework expected to finalize early next year.
^ expect to serve consumers July 1 2027
VA limited cultivation capacity overall, believe could see supply constraints for 24-36 months following A/U implementation.
Primary CAPEX priority in preparing VA operations for A/U.
Next year complete VA phase of cultivation expansion, 2 more flowering rooms, increasing capacity by 33%.
Will also add hydrocarbon extraction in VA next year.
Advancing plans for next phase of VA expansion, will increase capacity by 110% by EOY ‘27.
Evaluating traditional financing alternatives w/ traditional banks, providing better CoC than other providers.
Will refi Arlington mortgage along w/ broader strategy.
Securing lease for greenhouse property in VA.
Believe VA Dispensaries ready to generate retail sales similar to NJ dispensaries at NJ A/U onset.
Exploring other growth opportunities in core markets.
P1 grower/processor expansion in PA nearing completion, turning 1 room into 3 rooms,
P2/3 could increase canopy by 40%, staging capital deployment, need greater visibility into PA A/U legislation + timing.
OH warehouse expansion in design phase, proceeding will rely on market conditions and CoC.
42 stores across footprint vs. 40 stores at Q2 ’25.
Moving 1 dispensary in PA from Johnstown to Vernon.
Evaluating 3-4 retail relocations in PA and OH.
Significant progress on redomiciling ; shareholder approved ; effective July 30 2026.
Continue to see promising regulatory process across footprint.
MA changed retail ownership cap from 3 to 6 licenses per operator ; an opportunity for JUSHF.
IL took significant step in regulating “intoxicating hemp” products.
OH growth post-regulation of “intoxicating hemp” reinforces view that consumers will transition back to regulated market once “intoxicating hemp” becomes unavailable.
Higher retail volumes and unit growth in OH VA offset pricing pressure across several markets.
$2.4m increase in retail revenue, $3.4m increase in wholesale revenue.
Retail units sold up 11.4% YoY, mainly due to OH VA.
OH revenue up $4.6m YoY due to 3 dispensary openings.
Delivery sales up 15% YoY in VA area and 24% outside of VA area.
Higher GP reflected dispensary openings YoY.
SG&A of $29.3m, slight YoY increase.
($7.3m) net loss vs. ($12.3m) net loss in YoY period.
$35.5m cash/equivs.
$219.8m debt subject to repayment, excluding San Martino promissory notes in dispute.
$3.9m CAPEX, total CAPEX to $6.9m in 1H’26 ; expect FY’26 maintenance+ CAPEX of $10-13m, excl plans for VA expansion,
VA expansion could begin construction in Q4 ; in permitting process.
PA VA concentration, potential A/U legalization in those markets.
Talking to banks and taking bids, priority #1.
Financing available on real estate JUSHF owns is substantial.
Appraisal done on VA property, was a very big number.
Did $9.3m in OPCF in 1H’26 ; generating cash in 2H’26.
If get VA approval for facility in Q4, takes a year to build it, substantial portion of that capital will flow after VA is A/U..
Once VA is A/U, will have plenty of capital to invest into CAPEX.
Trying to do financing w/o dilution, given where stock price is.
/end
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