8-K: Jushi Holdings Reports Q2 2026 Results: Revenue Up 10%

Jushi Holdings Inc. announced its second quarter 2026 financial results, reporting a 10% year-over-year revenue increase to $71.3 million, driven by strong performance in both retail and wholesale channels.

Summary

• Jushi Holdings Inc. reported second quarter 2026 revenue of $71.3 million, a 10% increase compared to the same period in 2025.
• Gross profit was $31.5 million with a gross profit margin of 44.2%.
• The company reported a net loss of $7.3 million.
• Adjusted EBITDA was $13.3 million, with an Adjusted EBITDA margin of 18.7%.
• Wholesale revenue reached an all-time quarterly record of $9.4 million, a 68% increase year-over-year.
• Virginia achieved record quarterly revenue, with adult-use sales to commence in July 2027.
• A discrete income tax benefit of $6.4 million was recognized due to the rescheduling of state-licensed medical marijuana.
• The company's shareholders approved the continuance of the parent entity from British Columbia to Nevada.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a moderately positive report, with strong revenue growth and a record wholesale quarter, offset by a continued net loss and slight decrease in Adjusted EBITDA margin.

Positives

• Revenue increased 10% year-over-year to $71.3 million.
• Wholesale revenue grew 68% to a record $9.4 million.
• Virginia achieved record quarterly revenue.
• A discrete income tax benefit of $6.4 million was recognized due to federal rescheduling of medical marijuana.
• Jushi-branded product sales increased to 57% of retail revenue.
• 501 new SKUs were introduced, expanding the product portfolio.
• Cash provided by operations was $0.8 million in Q2 2026, an improvement from negative cash flow in Q2 2025.
• The company's parent entity is moving its incorporation from British Columbia to Nevada.

Negatives

• The company reported a net loss of $7.3 million for the quarter.
• Adjusted EBITDA decreased slightly by $0.4 million to $13.3 million compared to Q2 2025.
• Retail revenue growth was partially offset by lower average selling prices due to competitive pricing and promotions.
• Selling, general and administrative expenses increased slightly due to higher employee costs from expanded operations.
• Impairment and other asset-related charges of $1.5 million were recognized.
• Interest expense, net, was $9.9 million for the quarter.
• The company has total debt subject to scheduled repayments of $219.8 million as of June 30, 2026.

Risks

• Continued pricing pressure and promotional activity across markets impacting retail revenue.
• Risks related to managing the growth of the company, including potential future impairment of goodwill or intangibles.
• Risks related to capitalizing on Virginia's transition to an adult-use cannabis market.
• Potential future impairment charges related to dispensaries pending relocation.
• Increasing competition in the cannabis industry.
• Risks inherent in an agricultural business, such as the effects of natural disasters.
• Reliance on senior management's expertise and judgment.
• Potential product recalls for cannabis products manufactured for human consumption.

Future Outlook

The company is focused on expanding distribution, optimizing its retail portfolio, maintaining liquidity, and deploying capital toward opportunities that can generate attractive long-term returns. The enactment of adult-use legislation in Virginia presents a significant growth opportunity starting July 1, 2027, and the company is advancing cultivation and processing plans to support this transition.

Management Comments

• "Our second quarter results reflect solid execution across the business, with revenue increasing 10% year-over-year to $71.3 million with growth across both our retail and wholesale channels."
• "Wholesale revenue increased 68% to an all-time quarterly record of $9.4 million, supported by higher production volumes, improved product quality, and expanded distribution."
• "Retail revenue increased 4% year-over-year to $61.9 million, with retail units sold increasing 11.4% despite continued pricing pressure across our markets."
• "The quarter also included two important developments that we believe materially improve Jushi's long-term outlook. The federal rescheduling of state-licensed medical marijuana and the resulting elimination of Section 280E for qualifying activities reduced our income tax burden and resulted in a discrete tax benefit of $6.4 million."
• "In Virginia, the enactment of adult-use legislation creates a significant growth opportunity beginning July 1, 2027. We are advancing our cultivation and processing plans, evaluating disciplined financing alternatives, and leveraging a retail infrastructure that was built with adult-use demand in mind."

Industry Context

StockSavvy.ai notes that Jushi Holdings Inc.'s Q2 2026 results reflect a growing trend in the multi-state cannabis operator sector towards revenue diversification through wholesale channels and strategic positioning for emerging adult-use markets, as seen with Virginia's upcoming market launch.

Comparison to Industry Standards

• The 10% year-over-year revenue growth is a solid performance within the competitive U.S. cannabis market, where many operators are experiencing slower growth or declines.
• The 68% increase in wholesale revenue to a record $9.4 million indicates successful expansion of distribution networks, a key strategy for many MSOs aiming to leverage cultivation capacity.
• The 18.7% Adjusted EBITDA margin is within the typical range for well-managed cannabis companies, though it has seen a slight decrease from the previous year, reflecting industry-wide margin pressures.
• The discrete tax benefit of $6.4 million due to the rescheduling of medical marijuana is a significant positive development that directly impacts profitability, a benefit not universally experienced across all operators in the same way.

Corporate Governance

Related Party Transactions

• Notes payable to Sammartino totaling $21.5 million, with no current obligation to repay.

Stakeholder Impact

• Shareholders: Potential for increased long-term value due to revenue growth, strategic positioning in Virginia, and corporate restructuring. Continued net losses and debt levels remain a concern.
• Employees: Increased employee costs due to expanded operations may indicate hiring and growth, but also contribute to SG&A expenses.
• Suppliers: Increased production volumes and wholesale distribution may lead to greater demand for inputs and services.
• Creditors: The company's significant debt load ($219.8 million subject to scheduled repayments) remains a key factor for creditors.

Next Steps

• Focus on expanding distribution.
• Optimize the retail portfolio.
• Maintain liquidity.
• Deploy capital toward opportunities for long-term returns.
• Advance cultivation and processing plans for Virginia's adult-use market.
• Evaluate disciplined financing alternatives for Virginia's adult-use market.

Key Dates

Recommendation

The company shows positive revenue momentum and strategic progress, particularly in wholesale and positioning for Virginia's adult-use market. However, the persistent net loss, significant debt, and ongoing margin pressures warrant a cautious 'hold' recommendation until profitability improves and debt is managed more effectively.

Keywords

cannabis operator, multi-state operator, revenue growth, Adjusted EBITDA, wholesale revenue, retail revenue, adult-use market, tax benefit