Grown Rogue International (GRIN) Q2 2025 earnings summary

Executive summary

• Achieved positive cash flow from operations and net income of $2.5M for the six months ended June 30, 2025, reversing a net loss of $11.7M year-over-year.

• Maintained profitability and operational resilience through cost controls, yield improvements, and lower expenses.

• Expansion efforts continue in New Jersey, Illinois, and Minnesota, with new licenses and facility construction underway.

• Focused on long-term growth, not dependent on federal reform, leveraging low-cost production as a competitive advantage.

• Major restructuring of convertible debentures and share capital completed.

Financial highlights

• Six-month revenue declined 22% year-over-year to $11.1M, with gross profit at $4.6M and gross margin at 41%.

• Operating cash flow for the six months was $3.3M, up from $425K in the prior year.

• Cash and cash equivalents increased to $9.3M from $4.7M at year-end.

• Production costs in Michigan dropped below $400/lbs, Oregon in the mid $400s, with indoor costs estimated sub-$200/lbs.

• Adjusted EBITDA remained strong despite a significant pricing decline in core markets.

Outlook and guidance

• Expecting continued recovery in Oregon and Michigan pricing after recent troughs.

• New Jersey phase II construction to complete by early Q2 2026, targeting 1,200 lbs/month capacity.

• Anticipate capital-efficient growth from distressed industry opportunities over the next 12-18 months.

• Management expects ABCO to resume payments on defaulted notes within twelve months.

• No major customer concentration risk anticipated for the remainder of the year.