🇺🇸 $GTBIF Green Thumb
@GTIGrows
🤑 Q3 Earnings Report
• Revenue: $324.4M (up 11.3% YoY)
• Cash Flow from Ops: $58.3M
• Cash(ish): $316M
🔥-take: Green Thumb delivered resilient 11%+ revenue growth and rock-solid ~28% normalized EBITDA margins amid ongoing price pressure, proving the durability of its multi-state brand and retail model while the GAAP loss is mostly optics from prior-year one-time gains and RYTHM licensing fees; the real story is the fortress balance sheet and early Schedule III benefits setting it up to play offense.
🤖 ANALYSIS:
Green Thumb reported Q3 2026 results on November 4, 2026, showing solid top-line growth and stable core profitability in a challenging cannabis environment still dealing with price compression, competition, and regulatory flux.
**Financial Performance**
- **Revenue** of $324.4 million, up 11.3% year-over-year. This beat most consensus estimates (roughly $308–322 million range depending on the source), driven primarily by Minnesota’s adult-use launch (which began September 17, 2025), continued growth in Florida, New Jersey, New York, Ohio, and Virginia, and new store openings. Growth was partially offset by pricing pressure and increased competition in select markets.
- **Retail revenue** rose 10.1% YoY. Comparable store sales (108 stores open at least 12 months) returned to growth at +3.0%, the first positive print since Q3 2024 (improving from roughly –1% in Q2 2026).
- **Consumer Packaged Goods (CPG)** revenue grew a stronger 16.0% YoY, led by Minnesota adult-use and strength in Illinois, New Jersey, New York, and Ohio.
**Profitability and Margins**
- Gross profit was $146.8 million (45.2% margin), down from 49.4% a year ago. Excluding $15.8 million in RYTHM brand licensing fees, gross profit would have been $162.5 million or a healthier 50.1% margin.
- SG&A rose to $121.7 million (37.5% of revenue from 36.8%), mainly from higher compensation and benefits tied to store growth and retention-focused pay changes.
- **Normalized EBITDA** was $89.4 million (27.6% of revenue), up from $80.2 million (27.5%) a year earlier. This excludes the $15.8 million licensing fees, $10.4 million non-cash stock-based compensation, and $4.0 million in other non-operating adjustments. Core EBITDA was $59.3 million (18.3% margin).
- GAAP net loss was $4.8 million ($0.02 per share) versus net income of $23.3 million ($0.10) a year ago. The swing was driven by the prior-year gain on the sale of IP and the hemp business to RYTHM; other income/(expense) swung from +$36.2 million to –$3.7 million. Income tax expense fell sharply to $28.1 million from $49.1 million, primarily due to the federal rescheduling of medical cannabis to Schedule III.
**Balance Sheet, Liquidity, and Capital Allocation**
- Cash ended at a strong $316.0 million. Operating cash flow was $58.3 million.
- Total debt was $277.3 million, including $177 million of senior debt.
- The company has repurchased the equivalent of ~29.5 million subordinate voting shares for $203.4 million since 2023 (average price $6.90), including more than $80 million so far in 2026. The board extended the program for another 12 months with up to $50 million available through September 22, 2027. Management continues to prioritize the highest-return uses of capital among growth investments, acquisitions, and buybacks.
**Strategic and Regulatory Developments**
- Opened six new RISE Dispensaries during the quarter (Florida, Nevada, Pennsylvania) and has since expanded further in Florida (now at 27 locations, with several recent openings).
- Received DEA registrations for certain state medical cannabis licenses following the Schedule III reclassification—an early concrete benefit of federal reform.
- Will begin consolidating RYTHM, Inc. in Q4 after an amendment removed the beneficial ownership limitation on certain convertible notes and warrants (effective October 10, 2026). This is accounting-driven only; Green Thumb does not intend to exercise the securities and does not change its economic ownership. Results from Q4 onward will not be directly comparable to prior periods.
- Management highlighted a solid foundation for Virginia adult-use (expected July 2027) and progress toward Texas entry under a conditional license.
**Management Outlook and Industry Context**
CEO Ben Kovler emphasized the durability of the model through uncertainty, disciplined operations, brand strength, and financial flexibility. President Anthony Georgiadis noted momentum in both retail and CPG, with comparable sales returning to growth despite competition, and pointed to ongoing investment in high-potential markets and the team. Broader industry tailwinds (Schedule III, DEA registrations, potential further scheduling/tax changes) and headwinds (pricing pressure, competition, evolving hemp-derived THC rules) were acknowledged, with management stressing focus on controllable factors.
**Bottom Line**
This was a high-quality print underneath the GAAP optics. Double-digit revenue growth, the return of positive comps, stable high Normalized EBITDA margins, strong cash generation, and a fortress balance sheet stand out in a still-challenging cannabis market. The early Schedule III tax and regulatory benefits, continued retail expansion (especially Florida), and Minnesota contribution provide clear growth drivers. The upcoming RYTHM consolidation adds a comparability wrinkle starting next quarter, and ongoing price compression remains a watch item. Overall, the results reinforce Green Thumb’s position as one of the better-capitalized and operationally disciplined operators in the sector.
🗣️ MANAGEMENT COMMENTARY:
Ben Kovler
@Bkov9 Founder, Chairman, & CEO:
"Green Thumb has spent more than a decade building a business that performs through uncertainty, and the third quarter reflects the durability of that mode. On a year-over-year basis, we grew revenue 11% and maintained our Normalized EBITDA margin, even as pricing pressure persisted in several markets. This performance is driven by the strength of our brands, the execution of our team, and our commitment to operating with financial discipline. We ended the quarter with $316 million in cash and $177 million of senior debt, and we will continue to weigh growth investments, acquisitions, and buybacks, prioritizing what delivers the best long-term return for our stakeholders."
"There is a great deal of change and uncertainty across the cannabis industry right now. Medical cannabis is now on Schedule III, DEA registration brings new federal requirements, further action on scheduling and taxation is pending, and the rules for hemp-derived THC are being rewritten. Within this landscape, we are confident Green Thumb is well positioned. We are focused on what we can control, which is building brands people love and creating value we believe will be recognized over time. Our financial strength enables us to stay patient and move decisively as the market develops."
Anthony Georgiadis, President:
"Both our retail and consumer packaged goods businesses gained momentum in the third quarter. Comparable sales returned to growth for the first time since the third quarter of 2024, despite increased competition. CPG gross revenue grew 16% year-over-year, led by Minnesota’s adult-use market and continued strength across our core states. We expanded our retail footprint with six new RISE Dispensaries during the quarter and three more since, with Florida accounting for five of those nine new locations. Looking ahead, we are laying the groundwork for the next phase of growth. Several of our state-licensed medical dispensaries recently received DEA registrations under the new Schedule III framework. Our existing medical presence in Virginia gives us a solid foundation for adult-use sales beginning in July 2027, and we are advancing our work toward entry in Texas under our conditional license. Across the business, we continue to invest in our team and in our highest potential markets."
🌿 Cannabis ETFs: 🌎 $YOLO 🇺🇸 $MSOS
