Jushi Holdings Q2 Revenue Rises 10% As Wholesale Cannabis Sales Hit Record

Vertically integrated, multi-state cannabis operator Jushi Holdings Inc. (CSE: JUSH) (OTCQX: JUSHF) reported on Tuesday a 10% year-over-year increase in second quarter revenue to $71.3 million.

Wholesale revenue surged 68% to a record $9.4 million, marking the first quarter that wholesale sales totaled over $9 million. Jim Cacioppo, the company’s chairman and CEO, explained that this was due to “higher production volumes, improved product quality and expanded distribution.”

“These results demonstrate the progress we are making in strengthening our operational performance, increasing product availability and expanding our ability to serve both our retail network and wholesale partners,” he said.

The company highlighted in a press release that Virginia posted record quarterly revenue in anticipation of the launch of the state’s recreational cannabis market, scheduled for July 1, 2027.

Q2 Financial Highlights

• Gross profit and gross profit margin were $31.5 million and 44.2%, respectively.
• Net loss decreased to $7.3 million from $12.3 million a year earlier, aided by a $6.4 million tax benefit following the federal rescheduling of state-licensed medical marijuana to Schedule III. That move eliminated the impact of Section 280E for qualifying activities.
• Adjusted EBITDA came in positive at $13.3 million, compared with $13.7 million a year earlier, while the adjusted EBITDA margin was 18.7%.
• Cash, cash equivalents and restricted cash totaled $35.5 million at June 30, while gross debt stood at $219.8 million, excluding certain obligations.

What’s Next

Commenting on the fact that Virginia’s upcoming recreational cannabis market is a major growth catalyst for the company, “Virginia also delivered record quarterly revenue, driven by strong same-store performance across our six dispensaries,” Cacioppo said in a press release.

He explained the company’s management is preparing by advancing cultivation and processing capabilities, assessing financing options, while leveraging the retail footprint built to support future demand for recreational cannabis.