Green Thumb Q2 revenue rises 5% to $307M, net income swings to profit, but margins compress on licensing fees
GTBIF sits 37% above its 52-week low of $5.29.
Summary
Green Thumb reported Q2 revenue of $306.7M (+5% YoY) and net income of $4.9M, but gross margins compressed to 45% due to RYM licensing fees. The company repurchased 13.4M shares and benefited from cannabis rescheduling.
Key Events · Earnings and Guidance · GTBIF
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Revenue Up 5%, Net Income Swings to Profit
Q2 revenue reached $306.7M, up from $293.3M a year ago, driven by adult-use sales in Minnesota and growth in Connecticut, Florida, and Ohio. Net income was $4.9M vs. a loss of $0.6M in Q2 2025.
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Gross Margin Compresses on RYM Licensing Fees
Gross margin fell to 45% from 50% due to $15.75M in licensing fees paid to RYM, the entity that owns Green Thumb's brands. The new fixed annual fee of $70M will continue to pressure margins.
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Aggressive Share Repurchases Reduce Count by 6%
The company bought back 13.4M Subordinate Voting Shares for $77.7M at an average price of $5.78, reducing the outstanding share count by approximately 6%.
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Cannabis Rescheduling to Schedule III Lowers Tax Burden
The DOJ's final order reclassifying medical cannabis to Schedule III became effective April 28, 2026, prospectively reducing the company's provision for uncertain tax positions and lowering its effective tax rate.
Analysis · GTBIF · Industrial Applications And Services
Green Thumb's Q2 results delivered modest top-line growth but meaningful margin compression. Revenue rose 5% to $306.7 million, driven by new adult-use markets and store openings, yet gross margin fell to 45% from 50% a year ago — largely because of $15.75 million in licensing fees paid to RYM, the entity that now owns the company's brands. Net income swung to a $4.9 million profit from a small loss last year, helped by lower tax expense after the DOJ's rescheduling of cannabis to Schedule III. The company aggressively bought back 13.4 million shares for $77.7 million, reducing the share count by about 6%. While the balance sheet remains strong with $283.6 million in cash, the new fixed licensing fee structure with RYM ($70 million annually) will continue to pressure margins going forward.
At the time of this filing, GTBIF was trading at $7.27 on OTC in the Industrial Applications And Services sector, with a market capitalization of approximately $1.6B. The 52-week trading range was $5.29 to $10.43. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.