Grown Rogue International (GRIN) Q1 2025 earnings summary

Executive summary

• Pro forma revenue, including New Jersey affiliate, reached $7.15M, up 7% year-over-year, while pro forma Adjusted EBITDA was $1.57M, down 31% year-over-year, with a margin of 21.3%.

• Excluding the terminated Vireo Growth services agreement, pro forma revenue rose 14% and pro forma Adjusted EBITDA declined 21% year-over-year.

• New Jersey affiliate ABCO generated $1.77M in revenue and $0.77M in Adjusted EBITDA in its first full quarter, with a 43.4% margin.

• Reported (IFRS) revenue was $5.58M, down 16% year-over-year; Adjusted EBITDA was $0.80M, down 65% year-over-year.

• Operational KPIs improved, with higher yields and lower costs per pound in Oregon and Michigan, despite significant pricing pressure.

Financial highlights

• Oregon revenue was $2.87M (down 6% year-over-year) with a 34.1% Adjusted EBITDA margin; Michigan revenue was $2.51M (down 22%) with a 36.4% margin.

• Oregon and Michigan both saw cost per pound produced decrease by 11-12% year-over-year.

• Net income for the quarter was $1.08M, compared to a net loss of $4.17M in the prior year.

• Cash and cash equivalents increased to $6.23M from $4.68M at year-end.

• Closed a $7M credit facility at ~9% interest and converted $3.3M in convertible debentures, reducing annual interest expense by $0.3M.

Outlook and guidance

• Management expects continued operational improvements and completion of Phase II construction in New Jersey by late 2025, increasing capacity.

• Plans to enter one new state per year, with Illinois construction underway.

• Overhead investments are positioning the company for further expansion.