99S1TLT93 Filings — Green Thumb Industries Inc. - FilingSpy
99S1TLT93
Green Thumb Industries Inc.
Could not find a ticker for this position, may be a filing error
A Chicago-based cannabis company that grows, processes, and sells marijuana products through its own chain of RISE Dispensaries. Its brands include RYTHM flower and vapes, incredibles chocolates and gummies, and Dogwalkers pre-rolls. Founded in 2014 by Ben Kovler, the company takes its name from the gardener's idiom "green thumb," and its first store in Mundelein, Illinois was among the state's earliest medical cannabis dispensaries.
OTHERUnderlying: GTBIFCUSIP: 99S1TLT931 holder
Total Return Swap (TRS) on Trulieve Cannabis Corp. (TRUL.CN/TCNNF)
Gross margin fell to 45.0% as $15.8M in RYTHM brand licensing fees and price compression erased profitability gains.
fell to its lowest level in the data provided. rose 4.6% to $306.7 million, but gross margin contracted 4.9 points to 45.0% as $15.8 million in licensing fees from the RYTHM brand sale-leaseback and ongoing price compression drove cost of goods sold higher, pushing down 49.4% to $20.0 million. The company is now structurally less profitable, with a recurring licensing cost embedded in every quarter.
Key takeaways
fell 4.9 points to 45.0%, the lowest quarterly margin in the data provided, driven primarily by $15.8 million in RYTHM brand licensing fees and price compression in select markets.
rose 4.6% to $306.7 million, with growth from the adult-use launch in Minnesota and gains in Connecticut, Florida, and Ohio partially offset by price compression.
fell 49.4% to $20.0 million as the decline and a 10% increase in expenses to $117.9 million—tied to higher compensation and new store costs—more than offset the gain.
Section summaries
Management's Discussion and Analysis
Q2 revenue rose 5% to $307M on adult-use expansion, but gross margin fell to 45% due to RYM licensing fees and price compression.
⌄
Consolidated grew 5% to $306.7M, driven by the launch of adult-use sales in Minnesota and growth in Connecticut, Florida, and Ohio, partially offset by price compression.
was $4.9 million, down from a $0.6 million loss a year ago, but the prior-year quarter included a $15.9 million loss on the sale of the incredibles intellectual property that did not repeat.
Income tax expense fell 42% to $12.5 million, benefiting from the DOJ's final order reclassifying state-legal medical cannabis to Schedule III, effective April 28, 2026.
The company operated 123 retail stores at quarter-end, up from 108 a year ago, and held $283.6 million in cash and equivalents against $405.5 million in .
What changed
The Q1 2026 watch item asked whether could hold above the Q4 2025 trough of 45.4% in Q2. It did not: gross margin fell to 45.0%, a new multi-year low, as the $9 million quarterly licensing fee flagged in Q1 rose to $15.8 million this quarter.
The Q1 2026 watch item asked whether the company could generate positive from operations without one-time gains. The $17 million arbitration settlement did not repeat, and net income fell to $4.9 million from $15.4 million in Q1, confirming that alone is now barely covering other costs.
The FY 2025 watch item on the RYTHM and incredibles license agreements has materialized as a recurring drag: licensing fees reached $15.8 million this quarter, up from $9.0 million in Q1, and are now a structural cost embedded in .
The FY 2025 watch item on whether the $125.9 million non-cash warrant gain would repeat or reverse has not yet been tested in FY2026, but the sharp decline in to $20.0 million this quarter underscores the reliance on non-operating items for .
What to watch
Whether can hold above 45% in Q3 2026, or whether the RYTHM licensing fee run-rate—which rose from $9.0 million in Q1 to $15.8 million in Q2—continues to escalate and pushes margin to a new low.
The terms and duration of the RYTHM and incredibles license agreements, and whether any termination or renegotiation forces a costly rebranding across the company's largest product lines.
Whether the Schedule III reclassification's tax benefit, which reduced the this quarter, is sustained or whether the IRS challenges the company's position under now that the DOJ order is final.
generation in Q3, to see if the $8.8 million Q2 result—down 76.5% —was a trough or if and needs continue to consume most .
declined 6% to $137.9M, with contracting from 50% to 45%, primarily due to $15.8M in RYM licensing fees and price compression in select markets.
expenses increased 10% to $117.9M, reflecting higher compensation and costs from new store openings; the company operated 123 retail stores, up from 108 a year ago.
Income tax expense fell 42% to $12.5M, benefiting from the DOJ's final order reclassifying state-legal medical cannabis to Schedule III, effective April 28, 2026.
was $104.8M for the first half, down from $130.7M, while the company held $283.6M in cash and had $405.5M in as of June 30, 2026.
Two previously disclosed matters were resolved in Q2 2026; no other material proceedings exist as of June 30, 2026.
⌄
A lease dispute where a court awarded $7.3M in unpaid rent plus $0.9M in interest and fees was settled for $6.75M and fully resolved in March 2026.
An arbitration award in favor of Green Thumb against Ascend Wellness Holdings was settled for $17.0M, received in February 2026 and recorded in other income.
As of June 30, 2026, the Company states there are no pending or threatened lawsuits with probable or reasonably possible unfavorable outcomes requiring disclosure.
No proceedings exist where any director, officer, or affiliate is an adverse party or has a material interest adverse to the Company.