MEDFORD, Ore., May 12, 2026 /CNW/ - Grown Rogue International Inc. ("Grown Rogue," "we," "us," "our," or the "Company") (CSE:GRIN, OTC:GRUSF), a flower-forward cannabis company combining craft values with disciplined execution, today reported its unaudited financial results for the three months ended March 31, 2026. All currency is in U.S. dollars unless otherwise noted.
Results are presented in accordance with U.S. generally accepted accounting principles ("GAAP") and include consolidation of the Company's New Jersey operations, ABCO Garden State, LLC ("ABCO"), within the Company's financial statements. Comparative periods have been recast, where applicable, in accordance with GAAP.
Highlights:
Revenue of $9.2 million for the first quarter of 2026, compared to $7.2 million in the first quarter of 2025, an increase of approximately 28%, with growth driven largely by material revenue increases in New Jersey and modest revenue growth in Oregon. Michigan revenue increased year-over-year due to the inclusion of the pass-through of Michigan's new wholesale excise tax, while revenue excluding the excise tax declined approximately 4%.
Adjusted EBITDA (non-GAAP) of approximately $1.6 million and Adjusted EBITDA margin of 17.1%, compared to Adjusted EBITDA of approximately $1.2 million and Adjusted EBITDA margin of 16.6% in the first quarter of 2025.
GAAP net loss of $2.2 million for the first quarter of 2026, compared to GAAP net income of $0.7 million in the first quarter of 2025. First quarter 2026 results included non-cash fair value losses of $1.5 million, as compared to non-cash fair value gains of $1.5 million for the first quarter of 2025.
New Jersey: continued strong sell-through of packaged, branded products, with Phase II construction underway. The first additional flower room is expected to add approximately 25% incremental capacity, with its first harvest scheduled for later this month. The remaining rooms are expected to come online incrementally through the remainder of 2026, resulting in an approximate doubling of capacity this year.
Oregon and Michigan: Mature markets remained challenging, with continued year-over-year pricing declines and ongoing profitability pressure. Oregon revenue increased approximately 4% year-over-year, while Michigan reported gross revenue increased approximately 10% year-over-year, including the new wholesale tax implemented on January 1, 2026; excluding that impact, which was absorbed in price, Michigan revenue declined approximately 4%. While profitability in both markets remained pressured, management's focus on cost discipline has protected margins, while a focus on yield, quality, and targeted infrastructure improvements continued to support productivity gains, including strong yield performance in Michigan and the recent rollout of similar production technology and infrastructure improvements in Oregon.
Minnesota: construction continued at the Company's Fridley cultivation facility. Phase I, consisting of approximately 8,000 square feet of flowering canopy, remains targeted to come online late Q3 2026, with first revenue expected in Q1 2027, subject to regulatory approvals, construction and commissioning timelines.
Illinois: the Company continued preparations for its planned entry into Illinois through the previously announced cultivation facility in Dwight, Illinois, with operations expected to commence later this quarter, subject to regulatory approval. By State regulations, the facility is permitted to begin with 5,000 square feet of flowering canopy, which the Company plans to expand to approximately 10,000 square feet as quickly as allowed, and ultimately to the license maximum of 14,000 square feet.
Product expansion: the Company launched its new vape products in Oregon, including all-in-one disposable vape and 510 cartridge formats developed in-house around single-source cured resin, full-spectrum formulation, and no additives. Management expects the category to support wallet-share growth and improve utilization of biomass streams, including trim and outdoor production inputs.
Guidance: Management increased its 2026 revenue guidance to a range of $34 - $37 million from $32, 35 million, previously, and reiterated its 2026 Adjusted EBITDA and 2027 guidance, reflecting greater comfort with performance and market trends in Michigan following implementation of the new wholesale tax in January and continued confidence in the Company's expansion plans.
First Quarter 2026 Update
First quarter 2026 results reflected continued progress against the Company's growth plan, including increased contribution from New Jersey, continued operating discipline in Oregon and Michigan, and ongoing work to broaden the Company's product offering and market footprint. The quarter was also the first full quarter following the Company's transition to U.S. GAAP reporting and consolidation of ABCO, creating a clearer baseline for evaluating performance as expansion projects in New Jersey, Illinois, and Minnesota advance.
In New Jersey, demand and sell-through remained strong across packaged, branded products which represented 97% of New Jersey revenue in the quarter, Management believes quality, consistency, and affordability are the cornerstones of strong consumer loyalty across markets. The Company continued executing its Phase II expansion, which is expected to increase total New Jersey flowering canopy to approximately 16,000 square feet when complete later this year. As this capacity comes online, management anticipates short-term, modest reductions in the percentage of packaged, branded products sold.
In Oregon and Michigan, the Company continued to focus on controllable factors, including cost per pound, yields, harvest quality, product consistency, and targeted infrastructure improvements. Oregon revenue increased approximately 4% year-over-year, while Michigan revenue increased approximately 10% year-over-year, primarily due to the pass-through of Michigan's new wholesale excise tax which was implemented on January 1, 2026. Excluding that impact, which was absorbed in price, Michigan revenue declined approximately 4% year-over-year. Both markets continued to experience pricing pressure, which impacted profitability in the quarter. In Michigan, yield performance continued to improve, and the Company is beginning to apply similar infrastructure improvements in Oregon with the objective of moving flower yield performance from recent levels in the 70 g/sf range toward the 80 g/sf range.
The new vape category also reflects a product expansion strategy focused on staying true to our flower-forward ethos with disciplined SKU expansion and fuller utilization of the Company's efficient production capabilities. In Oregon, the Company is using its cultivation capabilities to convert select biomass streams that historically carry lower margins, into higher value branded vape products. Management views this as a capital-efficient way to extend the Grown Rogue brand into new consumption formats while preserving the genetics, flavor, and quality standards associated with its flower.
The Company also advanced its new-market pipeline, including construction activity in Minnesota and progressing towards restarting the recently inhabited turn-key Illinois facility. These projects are expected to be important contributors to the Company's 2027 financial performance, subject to the assumptions and risks described in this release.
Management Commentary
"The first quarter was a continuation of the plan we laid out earlier this year: keep building in markets where we believe quality flower and disciplined execution can earn attractive returns, while staying sharp in mature markets that require strong cost control and operational excellence," said Obie Strickler, Chief Executive Officer. "New Jersey continues to validate our thesis, with consistent demand for our packaged, branded products and meaningful expansion work underway. At the same time, we are seeing evidence that the technology upgrade work done in Michigan is translating into stronger yield performance, and we have begun upgrading our facilities in Oregon. Mature markets keep us focused on the fundamentals that have always mattered most to Grown Rogue: genetics, passion, quality, consistency, and efficient production. In addition to the markets themselves being cash flow contributors, they provide a best-practices laboratory for us to adapt practices across markets as the teams and facilities are ready."
Mr. Strickler continued, "Our priorities for 2026 remain clear. We are focused on completing Phase II in New Jersey, advancing our Minnesota buildout, preparing Illinois for operations, and continuing to broaden our product offering without losing the discipline that defines our approach. The new vape category is an example of that approach: using more of the plant and our in-house capabilities to create higher-value branded products in formats consumers are already choosing, while staying true to being flower forward with the genetics, flavor and flower integrity that define Grown Rogue. Assuming we navigate the regulatory timelines and inherent execution risks, we believe these initiatives can position Grown Rogue to enter 2027 with a more diversified operating base, a larger share of revenue from newer markets, and a stronger platform for sustainable profit growth."
Josh Rosen, Chief Strategy Officer, added, "Our approach to growth is not based on chasing every license or every market. It is based on disciplined underwriting and building where we believe our capabilities matter most. Minnesota is a new-build opportunity in a market we believe can support attractive economics, while Illinois is a lower-capital-intensity, 'fixer-upper' opportunity where operational discipline may unlock meaningful value. Across the portfolio, our focus remains on improving yields, quality, and consistency, while expanding wallet share with a targeted set of flower-forward products.
Andrew Marchington, Chief Financial Officer, commented, "First quarter 2026 marks our first quarterly reporting period following the transition to U.S. GAAP reporting and the consolidation of ABCO within our financial statements. We remain focused on transparent reporting, working capital discipline, cost controls, and allocating capital to projects that we believe meet our return thresholds. As we move through 2026 into 2027, we expect investors will have a clearer view of the operating profile of the business and the contribution of our newer markets. Of note, as we've managed our transition to GAAP, we've also been working on the integration of our core operational data with our financial performance and we found that we had not properly eliminated all of our selling costs as we recalibrated our cost of production metrics in our Operating KPIs, thus leading to a restatement of that metric looking backward as well."
Selected First Quarter 2026 Financial Results (Unaudited)
Metric
Q1 2026
Q1 2025
YoY Change
Q4 2025
Revenue (GAAP)
$9.2 million
$7.2 million
+28 %
$8.8 million
Gross Profit
$4.0 million
$3.4 million
+18 %
$3.6 million
Gross Margin
43.2 %
47.0 %
-382 bps
40.8 %
GAAP Net Income (Loss)
($2.2 million)
$0.7 million
n.m.
($0.7 million)
EBITDA (non-GAAP)
$1.0 million
($0.2 million)
n.m.
($0.1 million)
Adjusted EBITDA (non-GAAP)
$1.6 million
$1.1 million
+32 %
$1.2 million
Adjusted EBITDA Margin
17.1 %
16.6 %
+49 bps
16 %
Cash and Cash Equivalents
$13.7 million as of Mar. 31, 2026
$9.8 million as of Mar. 31, 2025
+39 %
$11.4 million as of Dec. 31, 2025
n.m.
= not meaningful. EBITDA and Adjusted EBITDA are non-GAAP financial measures. See "Non-GAAP Financial Measures" and the reconciliation tables included below.
Selected Quarterly Revenue by Segment (Unaudited)
Segment
Q1 2026 Revenue
Q1 2025 Revenue
YoY Change
Q4 2025 Revenue
Oregon
$3.0 million
$2.9 million
+4 %
$2.5 million
Michigan*
$2.7 million
$2.5 million
+10 %
$2.7 million
New Jersey
$3.4 million
$1.8 million
+93 %
$3.5 million
Corporate / Other
$0.0 million
$0.0 million
n.m.
$0.0 million
Total Revenue
$9.2 million
$7.2 million
+28 %
$8.8 million
*
Michigan Q1 2026 reported revenue includes the impact of the wholesale excise tax, enacted January 1, 2026.
Operating KPIs by Market
Q1 2026
Q4 2025
Q3 2025
Q2 2025
Q1 2025
Q4 2024
Q3 2024
Q2 2024
Oregon*
Total Flower Harvested (lbs)
3,275
2,980
3,547
3,392
3,423
3,239
3,100
2,457
Flower Cost Per Pound Produced
$342
$379
$294
$331
$315
$327
$356
$ 455
Total Flower Yield (g/sf)1
69
68
73
72
69
69
63
58
"A" Flower Yield (g/sf)1
50
42
49
45
42
49
43
42
$ Bulk Flower ASP2
$480
$466
$499
$511
$610
$691
$736
$768
$ Packaged Flower ASP2
-
-
-
-
-
-
-
-
Portion of Revenue for Packaged Products
11 %
9 %
15 %
13 %
12 %
12 %
12 %
9 %
Michigan
Total Flower Harvested (lbs)
3638
3,960
3,518
3,391
2,948
3,104
3,215
3,010
Flower Cost Per Pound Produced
$313
$287
$312
$323
$378
$362
$364
$383
Total Flower Yield (g/sf)1
$82
82
77
71
64
66
65
64
"A" Flower Yield (g/sf)1
$52
49
46
45
35
39
41
43
$ Bulk Flower ASP2
$599³
$692
$775
$734
$740
$833
$902
$1,013
$ Packaged Flower ASP2
$889³
$957
$900
$972
$940
$984
$1,041
$ 1,209
Portion of Revenue for Packaged Products
20 %
24 %
17 %
17 %
18 %
27 %
35 %
36 %
New Jersey
Total Flower Harvested (lbs)
1640
1,678
1,306
1,546
1,518
Flower Cost Per Pound Produced
$676
$582
$770
$639
$630
Total Flower Yield (g/sf)1
61
64
59
58
57
"A" Flower Yield (g/sf)1
38
37
38
32
36
$ Bulk Flower ASP2
n.m.⁴
$1,193
$1,032
$939
$899
$ Packaged Flower ASP2
$1870
$2,131
$2,044
$2,562
$2,504
Portion of Revenue for Packaged Products
97 %
95 %
92 %
93 %
89 %
