Green Thumb Industries Inc.

What they do

Green Thumb manufactures and distributes cannabis brands including &Shine, Beboe, Dogwalkers, Doctor Solomon's, Good Green, incredibles and RYTHM across flower, pre-rolls, concentrates, vape, capsules, tinctures, edibles and topicals. It sells these products to third-party licensed cannabis retailers and to its own stores, primarily the RISE Dispensaries national chain. The company grows and processes most of its own plant material and operates twenty manufacturing facilities. As of December 31, 2025 it had 113 open retail locations, and 123 as of June 30, 2026.

Revenue drivers

• Consumer Packaged Goods (wholesale) — Manufactures its own cannabis brands in twenty facilities and sells them to third-party licensed stores across the U.S. as well as to its own retail stores; management said second quarter 2026 growth was supported by leaning into the wholesale business.
• Retail (RISE Dispensaries) — Owns and operates 123 open retail stores as of June 30, 2026, selling its own and third-party cannabis products; under 10% of retail income comes from non-cannabis merchandise such as t-shirts and accessories.
• Brand licensing to RYTHM, Inc. (RYM) — Sold the intellectual property for its brands to RYM in transactions closing May 20, 2025 and August 27, 2025, and licenses the brands back for exclusive use in its existing markets; the license agreements were amended on March 31, 2026 to replace the revenue-based fee with fixed annual licensing fees effective April 1, 2026.
• State market mix — Revenue comes from fourteen U.S. markets; second quarter 2026 growth was driven primarily by Minnesota retail after adult-use launch on September 17, 2025, with continued growth in Connecticut, Florida and Ohio.

Recent performance

Second quarter 2026 revenue was $306.7 million, up 4.6% year over year, with GAAP net income of $4.9 million or $0.02 per basic and diluted share and normalized EBITDA of $84.3 million (27.5% of revenue). Cash flow from operations was $29.0 million and cash at quarter end was $283.6 million. During the quarter the company repurchased the equivalent of approximately 7.9 million Subordinate Voting Shares for $48.3 million, at an average price of $6.11 per share. Full-year 2025 revenue was $1.18 billion with net income of $114.2 million and operating cash flow of $294.9 million.

Strategy

Management describes a disciplined, consumer-led approach, citing Virginia (adult-use sales authorized from July 1, 2027, where it holds one of five vertically integrated medical licenses, six RISE dispensaries and a grower-processor facility) and a conditional Texas Compassionate Use Program license as material developments. It is investing in its team, which it said raised SG&A and weighed on near-term EBITDA margins, and continues to open stores, including adult-use sales at RISE Paramus, New Jersey on July 13, 2026 and RISE Hanover, Pennsylvania on July 31, 2026. It has been repurchasing shares and holds $283.6 million in cash. It also holds about 33% of RYM common stock as of June 30, 2026, with rights to acquire additional shares that could raise ownership above 90%, subject to conditions including an RYM shareholder vote.

Risks

• Federal illegality — Cannabis remains illegal under U.S. federal law and enforcement of cannabis laws could change.
• Tax treatment — As a cannabis business the company is subject to unfavorable U.S. tax treatment and may incur significant tax liability.
• Banking and financing access — As a cannabis business it has restricted access to banking and other financial services and may face difficulty acquiring additional financing.
• Competition and brand dependence — It faces intense competition including from the illicit market and hemp products, and it depends on brands it now licenses from a third party.

Outlook

Management cited continued topline growth despite persistent pricing pressure in many key markets, with momentum in the business and a solid balance sheet. It flagged Virginia's July 1, 2027 adult-use launch and its Texas conditional license as material developments in states accounting for roughly 12% of the U.S. population. It also pointed to hemp policy turning in favor of the regulated market, citing Ohio removing most intoxicating hemp products from retail, and said the environment favors operators with scale, brands and shelf space already in place.