Green Thumb Industries (GTII) Q1 2025 earnings summary

Executive summary

• First quarter 2025 revenue reached $280 million, up 1.4% year-over-year, despite ongoing pricing pressures and macroeconomic uncertainty from tariffs and regulatory ambiguity.

• Adjusted EBITDA was $85.2 million (30.5% of revenue), down from $90.5 million (32.8%) in the prior year, with cash flow from operations at $74 million, reflecting operational resilience.

• Net income was $8.3 million ($0.04 per diluted share), down from $31.1 million ($0.13 per share) in the prior year, impacted by a prior year fair value adjustment.

• The company maintains a strong balance sheet and is focused on long-term growth, capitalizing on shifting consumer trends favoring THC over alcohol.

• Opened two new RISE Dispensaries in Nevada and Ohio, with grand opening profits donated to local charities.

Financial highlights

• Revenue grew 1.4% year-over-year to $280 million, driven by a 14% increase in consumer packaged goods sales, while retail revenue declined due to pricing pressures.

• Gross profit was $143.3 million (51.3% margin), down from $145 million (53% margin) last year, primarily due to price compression.

• Retail revenue decreased 2.5% year-over-year, mainly from price compression in Illinois, Pennsylvania, New Jersey, and Connecticut, partially offset by growth in Ohio and New York.

• Comparable store sales (stores open at least 12 months) declined 5.3% year-over-year on a base of 90 stores.

• Total SG&A expenses were $100.8 million (36.1% of revenue), up from $74.3 million (26.9%) in Q1 2024, reflecting the absence of a prior year $15.9 million non-cash credit.

Outlook and guidance

• Second quarter sequential revenue is expected to be flat due to continued pricing challenges.

• Adjusted EBITDA margin is projected to fall below 30% in coming quarters as pricing pressures persist.

• Capital expenditures for 2025 are expected to be approximately $80 million, in line with the prior year.

• No expectation for sweeping federal cannabis reform in the near term; focus remains on operational efficiency and selective market investments.

• Teams are preparing for the launch of adult-use sales in Minnesota, expected before year-end.