Jushi (JUSH) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $63.8M, down from $65.9M in Q4 2024 and $65.5M in Q1 2024, mainly due to seasonality and price compression.

• Net loss was $17M, improved from $18.4M in Q1 2024 but higher than $12.5M in Q4 2024; adjusted EBITDA was $9.8M, up 22.8% sequentially but down from $13.3M in Q1 2024.

• Operating cash flow increased to $7.5M, driven by employee retention credits and working capital improvements.

• 40 operational retail locations at quarter-end, with six of seven planned new stores opened since Nov 2024 and five more expected by year-end.

• Strengthened balance sheet via ERC claim factoring and issuance of $5.1M in second-lien notes.

Financial highlights

• Gross profit was $25.8M (40.4% margin), down from $32.3M (49.4%) in Q1 2024 but up sequentially from $25.4M (39%).

• Retail revenue was $56.8M, with unit sales up but dollar sales down due to pricing pressure; wholesale revenue was $7M, down from $8.1M.

• Operating expenses decreased to $27.6M, mainly due to lower share-based compensation.

• Cash, equivalents, and restricted cash totaled $27.9M as of March 31, 2025.

• Capex was $4.0M in Q1 2025.

Outlook and guidance

• Retail expansion on track, aiming for 14 stores by mid-2026 and 5 new stores by year-end.

• Focused on expansion in Illinois, New Jersey, and Ohio, with ongoing evaluation of other high-opportunity regions.

• Growth CapEx for 2025 expected at $7M–$12M, maintenance CapEx at $3M–$5M, subject to regulatory and market conditions.

• Margin improvements anticipated as higher-cost inventory rolls off and new management/cultivation practices take effect.

• Management expects continued cost optimization and efficiency improvements.