Green Thumb Industries, Inc. Q1 FY2026 earnings call

Ben mentioned Green Thumb has operated based on the理念 that chance favors only the prepared mind, has multiple brands like Rhythm, Dog Walkers, etc., retail footprint spans 14 markets and 114 stores. Anthony talked about first quarter strong results, $19 million capital expenditure in Q1, CPG market share growth in various markets, adult use opportunities in Minnesota, Pennsylvania, Virginia, and 2026 outlook with headwinds and doubling down on fundamentals. Also mentioned bringing back Rhythm Bud Ball series this summer. Matt discussed first quarter gross profit, OPEX, normalized EBITDA, cash balance and positive cash flow reflecting financial flexibility.

First quarter revenue was $300 million, up 7.5% from the prior year period, compared to approximately a 1% decline in the broader industry. Normalized EBITDA was 93.5 million or 31.2% of revenue. Cash flow for operations was 76 million, and ended the quarter with over $344 million in cash on the balance sheet. Spent about $80 million buying back about 13.4 million shares so far this year.

Expect second quarter sequential revenue to be flat to down slightly due to pricing environment. Overall cautiously optimistic about near-term outlook but faces headwinds like price compression, consumer discretionary spending pressure, regulatory uncertainty. Strategy is to put consumer at center of everything.

Various risks including regulatory changes that could affect actual results, market competition leading to price compression, consumer spending uncertainties, and other uncertainties that may cause actual results to differ from forward-looking statements.

Q: Aaron Gray asked about GTI and Rhythm capital allocation, Texas market.

A: Ben said investment in RISM provides optionality, Anthony talked about cautiously optimistic on Texas market.

Q: Bill Kirk asked about regulatory developments, share repurchases.

A: Ben discussed regulatory direction is positive, Matt mentioned price sensitivity on buyback.

Q: Federico Gomes asked about intoxicating hemp ban, international exports.

A: Ben said hemp ban good for business, Anthony said interested in international exports.

Q: Pablo Zrenik asked about rescheduling not legalization, M&A, Rhythm complexity.

A: Ben said rescheduling not legalization, Anthony talked about M&A focusing on state markets, Ben discussed Rhythm optionality complexity.