Green Thumb Industries (GTII) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $280 million, up 1.4% year-over-year, with net income of $8.3 million or $0.04 per share, despite ongoing pricing pressures and macroeconomic uncertainty.

• Adjusted EBITDA was $85.2 million (30.5% of revenue), with cash flow from operations at $74 million, reflecting operational resilience and disciplined execution.

• 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, expanding retail footprint to 104 locations.

Financial highlights

• Revenue grew 1.4% year-over-year to $280 million, driven by a 13.6% increase in consumer packaged goods sales, while retail revenue declined 2.5% due to pricing pressures.

• Gross profit was $143.3 million (51.3% margin), down from $144.9 million (52.5% margin) last year, primarily due to price compression.

• Net income was $8.3 million ($0.04 per diluted share), down from $31 million ($0.13 per share) in the prior year, impacted by a prior year fair value adjustment.

• Adjusted EBITDA fell to $85.2 million from $91 million year-over-year.

• Cash at quarter-end was $211 million, with working capital of $258 million and total debt of $252 million.

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.

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