Vext Science (VEXT) Q1 2026 earnings summary

Executive summary

• Revenue grew 5.2% year-over-year to $12.2 million, led by Ohio's strong performance and offsetting Arizona pressures.

• Gross profit more than doubled to $5.5 million, and adjusted EBITDA rose to $3.6 million with a 29% margin, up 73% sequentially.

• Net loss narrowed to $0.9 million from $3.3 million a year ago, a 73% improvement.

• Cash from operations was $1.6 million despite working capital headwinds and Arizona cultivation drag.

• Strategic focus remains on Ohio retail expansion and streamlining Arizona operations.

Financial highlights

• Ohio revenue increased 34% year-over-year to $8.2 million, driven by new dispensaries and improved cultivation.

• Arizona revenue declined 24% year-over-year due to wholesale compression and oversupply.

• Wholesale revenue dropped 50% year-over-year to $1.7 million, reflecting a retail-first strategy.

• Gross profit margin improved to 45.4% in Q1 2026, more than doubling from the prior year.

• Cash balance at quarter-end was $5.5 million, up from $5.1 million at year-end 2025.

Outlook and guidance

• Sixth Ohio dispensary expected to open in Q2, seventh in Columbus later in 2026, and eighth in early 2027.

• Ohio remains the highest return growth opportunity; capital allocation is focused accordingly.

• Arizona cultivation exit to be completed by end of Q2 2026, with cash flow drag expected to improve.

• Anticipated margin expansion and cash flow growth as Ohio scales and Arizona transitions to a capital-light model.

• Management expects continued strong cash flow generation through 2026, supported by scaling Ohio operations and a streamlined Arizona business.