Grown Rogue International (GRIN) Q2 2025 earnings summary

Executive summary

• Achieved positive cash flow from operations despite a $2M+ EBITDA headwind from lower average selling prices year-over-year.

• Pro forma revenue for Q2 2025 was $8.01M, up 4% year-over-year; pro forma adjusted EBITDA was $1.82M, down 12% year-over-year, reflecting margin pressure from pricing declines and growth investments.

• Maintained profitability and operational resilience through cost controls and yield improvements.

• Expansion efforts continue in New Jersey, Illinois, and Minnesota, with new licenses and facility construction underway.

• Focused on long-term growth, not dependent on federal reform, and leveraging low-cost production as a competitive advantage.

Financial highlights

• Production costs in Michigan dropped below $400/lbs, Oregon in the mid $400s, with indoor costs estimated sub-$200/lbs.

• Oregon revenue: $3.08M (down 16% YoY), adjusted EBITDA: $0.80M (26.1% margin); Michigan revenue: $2.28M (down 34% YoY), adjusted EBITDA: $0.78M (34.2% margin); New Jersey affiliate revenue: $2.65M, adjusted EBITDA: $1.29M (48.6% margin).

• Total flower harvested increased 20% in Oregon and 14% in Michigan year-over-year.

• Cost per pound produced fell 16% in Oregon and 15% in Michigan year-over-year.

• Adjusted EBITDA remained strong despite a significant pricing decline in core markets.

Outlook and guidance

• Expecting continued recovery in Oregon and Michigan pricing after recent troughs.

• New Jersey phase II construction to complete by early Q2 2026, targeting 1,200 lbs/month capacity.

• Anticipate capital-efficient growth from distressed industry opportunities over the next 12-18 months.

• Management expects continued pricing pressure but sees opportunity in distressed industry conditions.

• No material near-term impact expected from potential federal rescheduling of cannabis.