Gross Profit Margin Expanded 460 bps Year-Over-Year to 45.0%, Reflecting Improved Operational Performance at our Grower-Processor Facilities
Completed Strategic Refinancing, Strengthening Liquidity and Positioning the Company for Long-Term Growth
BOCA RATON, Fla., May 12, 2026 (GLOBE NEWSWIRE) -- Jushi Holdings Inc. ("Jushi" or the "Company") (CSE:JUSH) (OTCQX:JUSHF), a vertically integrated, multi-state cannabis operator, is pleased to announce its financial results for the first quarter ended March 31, 2026 ("Q1 2026"). All financial information is unaudited and provided in U.S. dollars unless otherwise indicated and is prepared under U.S. Generally Accepted Accounting Principles ("GAAP").
First Quarter 2026 Financial Highlights
Revenue of $66.4 million
Gross profit and gross profit margin of $29.9 million and 45.0%, respectively
Net loss of $19.8 million
Adjusted EBITDA1 and Adjusted EBITDA margin1 of $11.4 million and 17.2%, respectively
Cash, cash equivalents, and restricted cash of $42.3 million as of quarter-end
Net cash flows provided by operations of $8.6 million
1 See "Use of Non-GAAP Financial Information" and "Unaudited Reconciliation of Net Loss to Adjusted EBITDA and Calculation of Adjusted EBITDA Margin" below.
First Quarter 2026 Company Highlights
In March 2026, we refinanced both our senior secured term loan issued in July 2024 (the "2024 Term Loan") and our second lien secured notes issued in December 2022 (the "Second Lien Notes"), which had an aggregate principal balance of approximately $132.3 million as of December 31, 2025. The refinancing was completed through the issuance of a $160.0 million 12.5% secured term loan, issued at a 4% original issue discount, due in 2029. An entity affiliated with Jim Cacioppo, our Chief Executive Officer, Chairman, and Founder, and Denis Arsenault, a significant equity holder of the Company, both participated. Proceeds were used to repay in full the outstanding principal, accrued but unpaid interest, exit fee and make-whole on the 2024 Term Loan, as well as the outstanding principal and accrued but unpaid interest on the Second Lien Notes. The proceeds were also used to pay all fees and expenses associated with the refinancing. Remaining excess proceeds were retained on the balance sheet for general corporate purposes.
On January 8, 2026, we opened our second Beyond Hello™ location in the Cincinnati, Ohio metropolitan area, marking the seventh Beyond Hello™ dispensary operating in the state.
Jushi-branded product sales grew to 58% of retail revenue in Q1 2026 across the Company's five vertical markets, compared to 56% in first quarter of 2025 ("Q1 2025").
Expanded brand and product portfolio with 567 new, unique SKUs introduced in Q1 2026, including offerings launched in certain states for the first time, covering flower, pre-rolls, vapes, concentrates, and edibles to meet diverse patient and customer needs.
Post Quarter-End Developments
Pursuant to a rule issued in the Federal Register on April 28, 2026, state-licensed medical marijuana was rescheduled to Schedule III, eliminating the application of Section 280E to such operations. Medical sales represented approximately 60% of the Company's total revenue in 2025. Accordingly, the Company expects the rule change to positively impact its tax expense on an ongoing basis. Further, the formal hearing on the potential rescheduling of marijuana beyond medical to Schedule III has been set to begin on June 29th and should conclude no later than July 15th.
The Company announced its intention to seek shareholder approval for the proposed continuance of its parent entity out from British Columbia, Canada to Nevada, United States (the "Continuance"), to align the Company's corporate structure with its existing operations and long-term strategy.
In March 2026, legislation permitting the sale of cannabis for adult-use was passed by the Virginia General Assembly ("General Assembly") and submitted to the Governor for consideration. In April 2026, the Governor returned the legislation with proposed amendments. The General Assembly rejected the Governor's amendments and returned the legislation to the Governor for further consideration. Under Virginia law, the Governor has until May 23, 2026 to either sign or veto the legislation, or allow it to become law without her signature. The transition to adult use is expected to expand our customer base and increase demand, though the timing and extent of any revenue impact remain uncertain.
Management Commentary
"Our first quarter results reflect continued progress in executing our strategy, with year-over-year revenue growth and meaningful margin expansion driven by improvements in operational performance and product quality," said Jim Cacioppo, the Company's Chairman and Chief Executive Officer. "Across our grower-processor network, operational efficiencies and increased production volumes are supporting both our retail and wholesale channels, contributing to stronger gross profit and a 460 basis point expansion in gross profit margin year-over-year. While pricing pressure persists across certain markets, our focus on efficiency, product quality, and disciplined execution continues to drive improved performance."
Mr. Cacioppo continued, "Our retail business benefited from contributions from our retail expansion in Ohio and strong performance across our Virginia footprint, while wholesale revenue growth was driven by increased distribution, higher production capacity, and strong demand in key markets such as Massachusetts and Ohio. We also continued to advance our branded product strategy, with Jushi-branded products representing approximately 58% of retail sales in our vertical markets, reflecting ongoing mix shift into higher quality brands and continued portfolio expansion."
Mr. Cacioppo concluded, "During the quarter, we strengthened our balance sheet through the successful refinancing of our 2024 Term Loan and Second Lien Notes, enhancing liquidity and extending maturities while preserving balance sheet flexibility. Additionally, the recent federal rescheduling of state-licensed medical marijuana to Schedule III represents a significant milestone for the industry, eliminating 280E tax constraints for medical operations and supporting a more favorable long-term operating environment. Looking ahead, we remain focused on operational excellence, optimizing our retail footprint, and making targeted, high-return investments across our facilities. At the same time, we continue to monitor regulatory developments across our markets, which we believe will play an important role in shaping future growth opportunities. With a strong operational foundation and improved financial flexibility, we are well positioned to drive sustainable growth and long-term value creation."
Financial Results for the First Quarter Ended March 31, 2026($ in millions)
Three Months Ended March 31,
2026
2025
2026 vs. 2025
Amount
% of Revenue
Amount
% of Revenue
$ Change
REVENUE, NET
$
66.4
100
%
$
63.8
100
%
$
2.6
COST OF GOODS SOLD
(36.6
)
(55
)%
(38.1
)
(60
)%
1.5
GROSS PROFIT
29.9
45
%
25.8
40
%
4.1
OPERATING EXPENSES
28.3
43
%
27.6
43
%
0.6
INCOME (LOSS) FROM OPERATIONS
1.6
2
%
(1.9
)
(3
)%
3.5
OTHER INCOME (EXPENSE)
(12.7
)
(19
)%
(6.2
)
(10
)%
(6.5
)
NET LOSS
$
(19.8
)
(30
)%
$
(17.0
)
(27
)%
$
(2.8
)
ADJUSTED EBITDA
$
11.4
17
%
$
9.8
15
%
$
1.6
Q1 2026 Compared to Q1 2025
Retail revenue increased by $1.0 million, primarily attributed to Ohio and Virginia. In Ohio, retail revenue increased by $4.4 million due to the addition of four new dispensaries since Q1 2025. Retail revenue in Virginia grew by $0.7 million driven by strong same-store sales across our six-store network. The increases in retail revenue were partially offset by the ongoing impact of competitive pricing pressure across various markets. We ended Q1 2026 with forty-two dispensaries in eight states, as compared to forty in seven states at the end of Q1 2025.
Jushi-branded product sales grew to 58% of retail revenue in Q1 2026 across the Company's five vertical markets, compared to 56% in Q1 2025.
Wholesale revenue increased by $1.6 million primarily attributable to higher wholesale sales in Massachusetts, driven by increased bulk sales, expanded wholesale distribution, including placement in new dispensaries, and higher production volumes that supported greater product availability. Growth in Massachusetts also reflected limited product availability in the prior-year period when the Company prioritized supplying its retail stores in these markets. Ohio also contributed to the growth, supported by increased production capacity. These increases were partially offset by lower wholesale sales in Virginia due to reduced demand from wholesale partners.
Gross profit and gross profit margin increased to $29.9 million and 45.0%, respectively, as compared to $25.8 million and 40.4%, respectively. The increase in gross profit and gross profit margin was driven by higher production volumes, improved product quality and stronger performance at our grower-processor facilities, particularly in Ohio, Massachusetts and Pennsylvania. Higher gross profit also reflected the benefit of new dispensary openings since Q1 2025 in Ohio. These benefits were partially offset by continued pricing pressure and increased promotional activity across our retail footprint.
Operating expenses were $28.3 million as compared to $27.6 million. The modest year-over-year increase primarily reflects higher employee costs resulting from expanded operations, including new store openings. Also contributing to the increase were higher professional and legal fees and higher share-based compensation expense as Q1 2025 included higher forfeitures. These increases were partially offset by a reclassification of certain depreciation expense to cost of goods sold.
Other income (expense) included interest expense, net, of $10.4 million and a $5.0 million loss on debt related to the refinancing of the 2024 Term Loan and the Second Lien Notes, partially offset by a $2.3 million fair value gain on derivatives.
Balance Sheet and Liquidity
As of March 31, 2026, the Company had approximately $42.3 million of cash, cash equivalents and restricted cash. During Q1 2026, the Company paid approximately $3.0 million in capital expenditures. As of March 31, 2026, the total gross debt subject to scheduled repayments was $222.1 million, excluding leases and property, plant, and equipment financing obligations. This amount also excludes $21.5 million notes payable to Sammartino, as the Company currently has no obligation to repay these notes.
Cash provided by operations was $8.6 million during Q1 2026, as compared to $7.5 million during Q1 2025. The increase was primarily attributable to an improvement in our operating results, partially offset by lower cash flows provided by working capital changes.
As of May 5, 2026, the Company's issued and outstanding shares were 199,696,597 and its fully diluted shares outstanding were 305,626,935.
Use of Non-GAAP Financial InformationThe Company believes that the presentation of non-GAAP financial information provides important supplemental information to management and investors regarding financial and business trends relating to our financial condition and results of operations. For further information regarding these non-GAAP measures, including the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, please refer to the "Unaudited Reconciliation of Net Income (Loss) to Adjusted EBITDA and Calculation of Adjusted EBITDA Margin" section of this press release.
Conference Call and Webcast Information
The Company will host a conference call and audio webcast for the first quarter ended March 31, 2026, at 4:30 p.m. ET today, Tuesday, May 12, 2026.
Event:
First Quarter 2026 Financial Results Conference Call
Date:
Tuesday, May 12, 2026
Time:
4:30 p.m. Eastern Time
Live Call:
1-877-423-9813 (U.S. & Canada Toll-Free)
Conference ID:
13759794
Webcast:
Register
For interested individuals unable to join the conference call, a webcast of the call will be ...
