Green Thumb Industries (CNSX:GTII) reported first-quarter 2026 results that management described as a strong start to the year, highlighted by revenue growth, cash generation, and continued share repurchases amid what executives characterized as a constrained and price-competitive cannabis environment.
First-quarter results and cash position
Founder and CEO Ben Kovler said Green Thumb began 2026 with momentum carried over from 2025, noting that first-quarter revenue was $300 million, up 7.5% from the prior-year period, while the broader industry was down roughly 1% over the same timeframe. Normalized EBITDA was $93.5 million, or 31.2% of revenue, and operating cash flow totaled $76 million. The company ended the quarter with more than $344 million in cash, which Kovler called a company record.
Faulkner reported first-quarter gross profit of $144 million, or 48% of revenue, compared with $143 million, or 51% of revenue, in the year-ago quarter. He attributed the gross margin decline primarily to licensing fees incurred in the current period.
On expenses, Faulkner said selling, general and administrative (SG&A) costs were $103 million, or 34% of revenue, compared with $101 million, or 36% of revenue, a year earlier. He said the increase in total expenses was primarily tied to compensation costs and increased costs related to opening, acquiring, and operating retail stores. Normalized operating costs (excluding depreciation, amortization, one-time transaction costs, and stock-based compensation) were about $73 million, up from $69 million, which Faulkner said was mainly due to 11 incremental retail stores.
Green Thumb reported GAAP net income of $15.4 million, or $0.07 per diluted share, compared with $8.3 million, or $0.04 per share, in the prior-year quarter.
Operating highlights, CapEx, and market share
President Anthony Georgiadis said the quarter was “anchored by strong results in Minnesota,” with solid performance across markets including Ohio, Maryland, Virginia, Illinois, New York, and New Jersey. The company invested $19 million in capital expenditures during the quarter, with retail spending tied to store relocations and development in Pennsylvania, Ohio, and Florida, and wholesale investments focused on capacity expansion and automation.
Georgiadis said Green Thumb continues to gain CPG market share “in essentially every market,” with the most notable gains in Illinois, Pennsylvania, Ohio, Maryland, and Minnesota, where he said the company has taken the number one share position in each state. Kovler also cited BDSA data, stating that RYTHM is the number one flower brand nationally, RYTHM’s Animal Face is the number one flower SKU nationally, and Dogwalkers is the number one uninfused pre-roll in the U.S.
Georgiadis reiterated the company’s expectation for full-year CapEx to be approximately $80 million, while noting that figure could change depending on the direction of Virginia’s adult-use legislation.
Growth opportunities: Texas, Minnesota, Pennsylvania, and Virginia
Kovler highlighted several areas the company believes can drive long-term value, including state-level growth opportunities. He said Green Thumb was conditionally awarded a license to operate in Texas on April 1, calling it an opportunity in the nation’s second-most populated state, though he cautioned that operations would still be “a few years out.”
During the Q&A, Georgiadis struck a measured tone about Texas, saying the company is “cautiously optimistic” and pointed to the level of hemp product being sold in the state. He said the business done by incumbent operators is “paltry relative” to hemp sales and that Green Thumb will need to see regulations “stick” before making major capital decisions. He said the company plans to monitor how hemp regulations evolve while preparing its market playbook.
On other markets, Georgiadis said the company is focused on optimizing adult-use opportunities in Minnesota, Pennsylvania, and Virginia. In Minnesota, he said the market remains supply constrained and that the regulatory structure is “artificially limiting” the ability to bring additional supply into the adult-use market, adding the company hopes some issues can be resolved before year-end. In Virginia, he said Green Thumb remains active with legislators and Governor Stamberger on an adult-use bill after two consecutive gubernatorial vetoes. In Pennsylvania, he called the path to passing adult-use legislation by the end of 2026 “murky,” despite bipartisan recognition of the potential economic impact.
Capital allocation, buybacks, and M&A posture
Kovler emphasized disciplined capital allocation, pointing to more than $300 million of cash and less than $200 million of debt. He said the board authorized an additional $100 million for the share repurchase program in April, bringing total authorization to $150 million. Kovler said Green Thumb spent about $80 million repurchasing roughly 13.4 million shares so far this year, and since initiating buybacks at the end of 2023, the company has repurchased approximately 29 million shares for roughly $200 million, representing about 12% to 13% of the company.
Asked about the balance between buybacks and investing cash amid regulatory changes, Kovler said the company is “extremely price sensitive” on repurchases and still has appetite if attractive opportunities arise, while also stressing a desire to maintain balance sheet flexibility. On M&A, he said the company is not seeking transformational deals but is open to the right opportunities in a capital-constrained industry. Georgiadis added that the company is looking at opportunities within state markets to become “a little bit more vertical” or add incremental retail exposure “on the fringe,” focusing on areas where it can continue to grow share.
RYTHM Inc. and federal rescheduling
Kovler also discussed Green Thumb’s stake in RYTHM Inc., a Nasdaq-listed company that owns brand intellectual property for products Green Thumb manufactures and sells, including RYTHM, incredibles, Dogwalkers, and Beboe. He said the company views RYTHM as a strategic asset that provides “noteworthy advantage and future optionality,” particularly given uncertainty around future regulations.
In response to an analyst question about a licensing agreement adjustment, Kovler said the change was driven by familiarity with Nasdaq listing standards and “nets to the same amount of money,” adding that Green Thumb does not view it as a material change and that remaining compliant with Nasdaq is important.
On federal policy, Kovler said the company is encouraged by the rescheduling process moving medical cannabis from Schedule I to Schedule III, calling it “a meaningful and positive step” recognizing medical value. He said the change created a pathway for Green Thumb to submit applications to register with the DEA for certain state-licensed medical cannabis operations, adding the company submitted an application the prior week and is monitoring for additional guidance.
During Q&A, Kovler said Green Thumb does not yet know the full implications of DEA registration due to limited guidance, describing it as “a step in the right direction.” He also said rescheduling is “not full legalization,” while adding that it could broaden investor interest: “We think this opens up a new world of investors to come examine the space because there is federal clarity.”
Executives also addressed a potential intoxicating hemp ban expected later in the year. Kovler said if hemp sales shift into the state-regulated system, it should be positive for RISE same-store sales and pricing, adding that the company is seeing pockets that “might be the beginning of flattening or some strength as hemp gets regulated away.” Georgiadis said Green Thumb will evaluate optionality from rescheduling, including potential international export opportunities, while noting the company would consider capacity and other factors.
About Green Thumb Industries (CNSX:GTII)
Green Thumb Industries, a multi-state cannabis cultivator, processor and dispensary operator, is dedicated to providing access to safe and effective cannabis nationwide while giving back to the communities in which they serve. As a vertically integrated company, GTI manufactures and sells a suite of branded cannabis products including flower, concentrates, edibles, and topicals. The company also owns and operates a multi-state chain of retail cannabis stores called RISE™ dispensaries. Headquartered in Chicago, Illinois, GTI has seven manufacturing facilities and licenses for 50 retail locations across seven U.S.
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