Marimed (MRMD) Q2 2025 earnings summary

Executive summary

• Achieved sequential growth in both wholesale and retail revenues in Q2 2025, with a substantial increase in adjusted EBITDA and positive cash flow, while maintaining a healthy balance sheet.

• Q2 2025 revenue was $39.6M, down 2% year-over-year, with a net loss of $1.3M, improved from $1.6M loss last year.

• Expanded brand and product distribution, including new launches in Illinois, Maine, and Pennsylvania, and successful adult-use sales launch in Delaware.

• Completed the acquisition of First State Compassion Center in Delaware, consolidated from March 1, 2025.

• Operating expenses decreased year-over-year, driven by lower marketing costs, but personnel expenses rose due to increased headcount.

Financial highlights

• Q2 consolidated revenue was $39.6M, up 4.4% sequentially but down 2% year-over-year; six-month revenue was $77.6M, down 1%.

• Wholesale revenue grew 2% sequentially and 8% year-over-year, now 43% of aggregate product revenue; retail revenue increased 8% sequentially but declined 5% year-over-year.

• Adjusted gross margin was 41.9%, up from 41.3% last quarter but down 100 bps year-over-year; GAAP gross margin was 40.5%.

• Adjusted EBITDA was $4.9M, up $2.3M sequentially and $541,000 year-over-year; margin improved to 12.4%.

• Ended quarter with $6.1M in cash and $38.5M in operating working capital.

Outlook and guidance

• Focus remains on expanding wholesale distribution in Illinois and Delaware, launching adult-use sales in Delaware, and executing new partnerships in Maine and Pennsylvania.

• Plans to increase retail store revenue through enhanced customer experience and expanding dispensary footprint.

• Evaluating options for Missouri operations to ensure alignment with long-term financial objectives, with a decision expected before year-end.

• Management believes current cash and future funding will meet anticipated needs for at least the next twelve months.

• Expects revenue catalysts in H2 2025 from expanded wholesale and new market entries.