Green Thumb Industries (GTII) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $280 million, up 11% year-over-year, with over $90 million in EBITDA and $21 million in net income, reflecting strong operational execution despite price compression and inflationary pressures.

• Cash flow from operations for the first six months totaled $104 million after $53 million in tax payments; ended the quarter with $196 million in cash, supporting continued capital allocation and share repurchases.

• Repurchased 1.6 million shares for $20 million in Q2, with $27 million remaining under the current buyback program.

• Focused on expanding retail and wholesale operations, enhancing brand awareness, and leveraging music and lifestyle events to deepen consumer engagement.

• Opened two new retail stores in Florida during Q2; three additional stores opened post-quarter in Florida and New York.

Financial highlights

• Q2 revenue increased 11% year-over-year to $280 million, driven by new store openings and adult-use legalization in Maryland.

• Gross profit was $151 million (53.7% margin), up from $125 million (49.6% margin) in Q2 2023, due to improved CPG utilization and retail acquisition costs.

• Net income was $21 million ($0.09 per share), up from $13 million ($0.05 per share) last year.

• Adjusted EBITDA reached $94 million (33.5% of revenue), compared to $76 million (30% of revenue) in Q2 2023.

• Cash and cash equivalents at quarter end were $196 million; total debt outstanding was $310 million.

Outlook and guidance

• Q3 revenue expected to be flat sequentially, with some benefit anticipated from Ohio's adult-use launch.

• Continued focus on optimizing business operations, expanding CPG distribution, and investing in high-return markets such as Florida, Nevada, Minnesota, Pennsylvania, and Virginia.

• Anticipates further retail expansion, with 7-8 new stores planned for the second half of 2024.

• Management remains confident in long-term growth, citing strong market share gains and a robust balance sheet.

• Regulatory uncertainty persists regarding federal cannabis rescheduling, with no clarity from the DEA.