Green Thumb Industries (CNSX:GTII) reported third-quarter revenue growth of 11% as adult-use sales in Minnesota and gains in other markets helped offset pricing pressure. The cannabis company expects revenue to be flat to slightly lower in the fourth quarter, even as its results begin to include a consolidated RYTHM, Inc.
Revenue rose to $324 million, up approximately 6% from the second quarter. Normalized EBITDA, a non-GAAP measure, increased to $89.4 million, or 27.6% of revenue, from $80.2 million, or 27.5%, a year earlier.
Chief Financial Officer Matt Faulkner said fourth-quarter revenue would face pressure from the pricing environment. Asked about margins in the coming quarters, he said the company expects continued compression, although potential changes in the hemp market could provide a tailwind.
Retail Growth and a Return to Positive Comparable Sales
President Anthony Georgiadis said retail revenue rose 10% year over year, led by Minnesota, where adult-use sales began last September. Florida, Ohio, Virginia and Illinois also contributed to growth; Illinois benefited in part from acquisitions completed earlier in 2026.
Same-store sales across 108 stores increased 3%, the company’s first positive comparison since the third quarter of 2024. That followed a 1% decline in the second quarter of 2026.
Consumer packaged goods gross revenue rose 16%, driven by Minnesota and growth in Illinois, New Jersey, New York and Ohio, Georgiadis said. Price compression and competition in several markets partially offset those gains.
Green Thumb opened six RISE dispensaries during the quarter and three more in Florida after quarter-end, bringing its Florida footprint to 27 stores and its national portfolio to more than 130. Georgiadis said the company expects to open another three to five Florida stores by year-end and more than 10 there next year. It also plans one or two additional Ohio stores, while the pace of Texas expansion remains uncertain.
Margins and Net Results
Third-quarter gross profit was $147 million, or 45% of revenue, compared with $144 million, or 49%, a year earlier. Faulkner attributed the decline in gross margin to $15.8 million in brand licensing fees incurred during the current quarter. On a normalized basis, he said, margins improved slightly from a year earlier.
Green Thumb posted a GAAP net loss of $4.8 million, or $0.02 per share, compared with net income of $23.3 million, or $0.10 per share, in the prior-year quarter. The earlier period included a $42 million gain on the sale of intellectual property.
Operating cash flow was $58 million, and the company ended the quarter with $316 million in cash. Quarterly capital expenditures were $20 million; management expects approximately $80 million for full-year 2026, excluding real estate purchases.
Virginia and Texas Among Growth Priorities
Georgiadis identified Virginia and Texas as the company’s two most important state-level catalysts. Adult-use sales in Virginia are scheduled to begin July 1, 2027. Green Thumb has six RISE dispensaries and two cultivation facilities in the state.
Asked about potential supply shortages in Virginia, Georgiadis said the outcome was difficult to predict. He estimated it could take 12 to 36 months for state capacity to absorb anticipated demand, adding that Green Thumb had already made substantial investments and was preparing to turn on its facilities.
In Texas, the company has purchased a facility outside Fort Worth to serve as its primary wholesale hub and is looking for retail sites under its conditional license in the state’s compassionate use program. Georgiadis said hemp and federal policy clarity would influence the pace of investment. He also said it was too early to determine how the state’s election results might affect the program.
In Minnesota, Georgiadis expects the business to become more wholesale-focused as new stores open. Those openings have put pressure on Green Thumb’s retail business, he said, but also create opportunities to supply more outlets with its brands.
Federal Policy and Capital Allocation
Founder and CEO Ben Kovler called federal policy the industry’s biggest uncertainty and said institutional investors need clarity on scheduling and taxes. Kovler said Section 280E no longer applies to Green Thumb’s medical business, while Faulkner said delays in broader rescheduling and tax relief could result in continued significant tax liabilities.
Kovler also said the company is watching hemp policy closely. He maintained that THC beverages should have a place in a regulated market and said retailers and distributors have changed their behavior ahead of a forthcoming federal prohibition on intoxicating hemp products.
Green Thumb continues to weigh spending on growth, acquisitions and share repurchases. Its board authorized a new $50 million buyback program in September. Kovler said the company has returned more than $200 million to shareholders through repurchases since the fourth quarter of 2023.
In response to an analyst’s question, Kovler said Green Thumb is not currently interested in separating its medical business to seek a major U.S. exchange listing, citing operational and audit complications. He said the company has evaluated the possibility but wants greater federal clarity and a clearer picture of investor demand.
Green Thumb began consolidating RYTHM, Inc. on October 10 after a cap on converting notes and warrants was removed, triggering the accounting change. Kovler said Green Thumb did not buy shares or convert the securities, its ownership had not changed, and it had no current plans to convert.
About Green Thumb Industries (CNSX:GTII)
Green Thumb Industries, a multi-state cannabis cultivator, processor and dispensary operator, is dedicated to providing access to safe and effective cannabis nationwide while giving back to the communities in which they serve. As a vertically integrated company, GTI manufactures and sells a suite of branded cannabis products including flower, concentrates, edibles, and topicals. The company also owns and operates a multi-state chain of retail cannabis stores called RISE™ dispensaries. Headquartered in Chicago, Illinois, GTI has seven manufacturing facilities and licenses for 50 retail locations across seven U.S.
