Financial Highlights
For the quarter ending March 31, 2025, Green Thumb reported revenue of $280 million, marking a 1.4% increase compared to the same period in the previous year. Adjusted EBITDA stood at $85 million, representing 30.5% of revenue, down from 32.8% in Q1 2024. Net income was $8.3 million, or $0.04 per diluted share, a decline from $31.1 million, or $0.13 per diluted share, in the prior year.
The company’s gross profit for the quarter was $143.3 million, accounting for 51.3% of revenue, slightly down from 52.5% in the previous year. This decrease was primarily attributed to price compression in key markets such as Illinois, Pennsylvania, New Jersey, and Connecticut.
Operational Developments
Green Thumb expanded its retail footprint by opening two new RISE Dispensaries in Nevada and Ohio during the quarter. The company also invested $30 million in capital expenditures, with plans to open, relocate, or remodel 10 to 12 stores in 2025.
In the consumer packaged goods segment, gross revenue increased by 13.6% year-over-year, driven by growth in markets like Minnesota, New York, and New Jersey, as well as the addition of adult-use sales in Ohio.
Market Challenges
Despite these positive developments, Green Thumb faced challenges including a 2.5% decline in overall retail revenue and a 5.3% decrease in comparable store sales for locations open at least 12 months. These declines were attributed to pricing pressures and increased competition in several markets.
The company’s selling, general, and administrative expenses rose to $100.8 million, or 36.1% of revenue, up from 26.9% in the prior year, partly due to the absence of a non-cash credit benefit that was present in Q1 2024.
Management Commentary
“The Green Thumb team delivered a respectable quarter with revenue and Adjusted EBITDA of $280 million and $85 million, respectively, and cash flow from operations of $74 million,” said Ben Kovler, Founder, Chairman, and CEO of Green Thumb. “We ended the quarter with a strong balance sheet including $211 million in cash.”
President Anthony Georgiadis added, “We are off to a great start in 2025. During the first quarter, we opened two new stores, including RISE Whitehall, which serves the greater Columbus, Ohio area and further cements our presence in one of the fastest growing markets in the country.”
Outlook
While Green Thumb continues to navigate a challenging market environment, its strategic investments and operational efficiency position the company for sustained growth. The company remains focused on expanding its retail presence and capitalizing on emerging opportunities in the evolving cannabis industry.
Dabbin-Dad Newsroom
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