Grown Rogue International (GRIN) investor relations material

Executive summary

• Navigated challenging pricing in Oregon and Michigan, with both markets experiencing a 25% year-over-year price decline, but signs of stabilization and recovery are emerging.

• Achieved net income of $2.5M for the six months ended June 30, 2025, reversing a net loss of $11.7M year-over-year, driven by lower expenses and a large unrealized gain on derivative liability.

• Major restructuring of convertible debentures and share capital completed, eliminating related liabilities.

• Expansion plans underway in New Jersey (phase two), Illinois, and Minnesota, with a recently awarded cultivation license and acquisition of 44% of ABCO Garden State LLC.

• Launched a new infused pre-roll product in Oregon, utilizing byproduct material and achieving strong margins.

Financial highlights

• Returned to positive cash from operations for the quarter, with six-month operating cash flow of $3.3M, up from $425K in the prior year.

• Revenue for the six months was $11.1M, down 22% year-over-year, with gross profit of $4.6M and gross margin of 41%.

• Cost per pound metrics improved, driven by higher yields, labor efficiency, and procurement savings.

• Cash and cash equivalents increased to $9.3M from $4.7M at year-end.

• No additional principal advances on short-term notes to ABCO; repayments are expected to increase over the year.

Outlook and guidance

• Expect continued recovery in Michigan and Oregon pricing, with optimism for a recovery cycle.

• Phase two in New Jersey expected to be fully constructed by late Q1 or early Q2 2026, targeting 1,200 pounds per month at full capacity.

• Management expects ABCO to resume payments on defaulted notes within twelve months.

• Strategic focus on long-term growth, with investments in team, branding, and construction expertise to support expansion.

• No major customer concentration risk anticipated for the remainder of the year.