MariMed (OTCMKTS:MRMD) reported first-quarter 2026 revenue of $39.5 million and adjusted EBITDA of $3.6 million, with management citing wholesale gains in Illinois and Delaware, continued positive operating cash flow and cost discipline despite difficult cannabis industry conditions.
Chief Executive Officer Jon Levine said the quarter’s performance reflected “operational discipline and the strength of our brands” against “adverse market dynamics” across the industry. The company also generated positive cash flow from operations during the quarter.
Management also pointed to continued strength in branded products. Levine said Betty’s Eddies was again the No. 1-selling edible across Illinois, Massachusetts, Maryland and Delaware combined, while Vibations powdered drink mix maintained a top-five share across those states.
Revenue grows year over year, declines sequentially on seasonality
Chief Financial Officer Mario Pinho said first-quarter revenue increased $1.6 million, or 4.2%, from the prior-year period, driven by retail expansion, adult-use sales in Delaware and increased wholesale distribution. Sequentially, revenue declined $2.2 million, or 5.2%, from the fourth quarter, primarily due to lower retail volume tied to expected seasonal softness.
Gross profit was $15.8 million, with gross margin of 40.1%. Pinho said gross margin was relatively stable sequentially, rising about 20 basis points, while declining about 110 basis points year over year due to mix shifts toward wholesale, partially offset by retail margin improvement and operational efficiencies.
Operating expenses were $14.4 million, down about $100,000 sequentially and down about $500,000 from the prior-year period. Pinho attributed the year-over-year decrease to lower bad debt expense and reduced marketing spending, partially offset by infrastructure investments, including IT and finance capabilities.
Operating income was $1.4 million, compared with $2.4 million in the fourth quarter and $700,000 in the first quarter of 2025. Adjusted EBITDA of $3.6 million represented a 9% margin, up from 7% a year earlier. GAAP net loss was $3.8 million, compared with a net loss of $4.6 million in the fourth quarter and a $5.4 million loss in the year-earlier quarter.
MariMed ended the quarter with $7.9 million in cash and cash equivalents, down from $8.9 million at the end of 2025. Pinho said the company generated positive operating cash flow while investing about $800,000, mainly in targeted capital expenditures and license renewals.
Wholesale strength offsets pressure in some retail markets
Chief Commercial Officer Ryan Crandall said wholesale revenue rose 4% year over year and declined 1% sequentially. He said MariMed maintained coverage in 84% of available storefronts across its core markets on a trailing-year basis.
Retail revenue increased 5% year over year and fell 7% sequentially. Crandall said year-over-year retail growth was supported by Delaware’s adult-use expansion, growth at the Upper Marlboro store in Maryland and the company’s loyalty program, which accounted for about 80% of retail revenue. Loyalty membership grew 10% in the quarter, and Crandall later said the program had 398,000 active members.
Crandall said the company’s Thrive app, launched during the quarter, helped drive personalized offerings. He said the average basket for loyalty members was 2% higher than for non-members, an improvement of 100 basis points from the prior quarter. He also said online orders placed before customers arrive at stores now account for more than 50% of sales.
State-by-state performance shows mixed trends
In Delaware, wholesale sales increased 13% sequentially and 373% year over year on a pro forma basis following the start of adult-use sales in August 2025. Crandall said MariMed’s brand portfolio again held the No. 1 overall market share position in the state, with Betty’s, Bubby’s and Vibations leading their categories. Retail revenue in Delaware fell 12% sequentially but rose 24% year over year on a pro forma basis.
In Massachusetts, wholesale revenue increased 1% year over year and decreased 4% sequentially. Crandall said Betty’s Eddies and Bubby’s Baked maintained No. 1 sales positions in their edible categories, while Nature’s Heritage concentrates moved to the No. 1 position from No. 4 at the end of the fourth quarter. Retail revenue in Massachusetts declined 9% year over year and 10% sequentially, with average order volume down about $2 per basket.
In Maryland, wholesale sales fell 12% year over year and 8% sequentially due to production issues that Crandall said have been resolved. Retail revenue in Maryland declined 5% year over year but rose 24% sequentially, with the Upper Marlboro store continuing to outperform expectations.
In Illinois, wholesale revenue increased 22% year over year and 25% sequentially. Crandall said Betty’s Eddies ranked as the 13th best-selling edible in the state during the quarter, while Vibations held its No. 6 ranking among beverages. Retail sales in Illinois declined 10% year over year and 2% sequentially, mainly due to average order value pressure.
Growth plans include licensing, Ohio store and Massachusetts expansion
Levine said MariMed’s licensing partner in Pennsylvania is awaiting state approval for the company’s products and packaging. In New York, construction has begun on a processing kitchen with a licensed partner in the Bronx. The company expects licensing revenue from both states early next year, while distribution of Betty’s Eddies continues to expand in Maine through a licensing agreement.
MariMed also plans to open a new Thrive dispensary in the Columbus, Ohio, area before the end of the year using its second retail license in that state.
Levine said the company is interested in adding stores in Massachusetts after the state increased the dispensary limit from three to six. During the question-and-answer session, he said MariMed would not rush to buy licenses and would seek markets with reasonable competition rather than areas with an overabundance of stores.
Management discusses rescheduling impact and pricing pressure
Levine said the recent rescheduling of medical cannabis should lock in the elimination of 280E-related taxes for the medical portion of MariMed’s business. Pinho said about 20% of first-quarter retail revenue came from medical sales, suggesting an immediate tax benefit, though the company is still awaiting further guidance on implementation and timing.
Levine said the rescheduling announcement has not changed banking conditions or increased M&A inbound activity, adding that banks and credit card companies are “acting the same as if it’s still an illegal situation.” He said more change may come if adult-use cannabis is rescheduled or if banking legislation is passed.
Asked about pricing, Crandall said pressure varies by category and market. He described Massachusetts as still competitive, Maryland wholesale as difficult and Illinois as facing aggressive pricing as more producers come online. He said flower, traditional vapes and traditional pre-rolls remain under pressure, while edibles, infused pre-rolls and rosin have generally been more stable.
Crandall said MariMed remains focused on product innovation, loyalty, transactions and making sure its own brands perform strongly in its Thrive stores. “The well-run businesses that continue to innovate” will be the ones that succeed in the current environment, he said.
About MariMed (OTCMKTS:MRMD)
MariMed Inc is a multi‐state cannabis company focused on the development, ownership and operation of regulated facilities for the medical and adult‐use cannabis markets. Headquartered in New Bedford, Massachusetts, the company cultivates, processes and dispenses cannabis through an integrated business model that encompasses cultivation, formulation, manufacturing and retail operations. MariMed operates under its own licensed brands and through strategic partnerships to expand its presence across the United States.
The company’s product portfolio includes branded flower, pre‐rolls, vaporizer cartridges, tinctures, edibles and topicals designed to meet a range of consumer and patient needs.
