Jushi Q3 2026 Results: Revenue Hits $70.5M as CEO Calls Virginia Its “Most Significant Near-Term Growth Opportunity”

Burn After Reading The 30-second intel for operators and investors ⏱ 0:30

Jushi reports Q3 revenue of $70.5 million, up 7% year over year, with record wholesale sales of $9.7 million and a narrower net loss of $12.5 million. Gross margin slips to 45.9% and gross debt stands at $215.6 million.

• Operators: Wholesale and retail volumes are growing, but lower average selling prices and promotions are squeezing margins. Virginia's adult-use start on July 1, 2027 pushes operators to weigh cultivation and processing capacity against financing availability.
• Investors: Part of the net loss improvement comes from a $241,000 derivative gain versus a $6.3 million loss last year. Operating cash flow fell to $3.5 million, and net interest expense was about $10.2 million.
• Do now: Review your own capacity and financing plans against Virginia's July 1, 2027 adult-use start, and check how much of your margin pressure comes from pricing and promotions.

Short on time? You’re done. Want the numbers?Keep reading ↓

Jushi Holdings (CSE: JUSH) (OTCQX: JUSH) reported third-quarter revenue of $70.5 million, up 7% from a year earlier, supported by stronger wholesale distribution and retail growth in Ohio and Virginia. The company also narrowed its net loss, although declining gross margins and a substantial debt burden continue to complicate its growth strategy.

The results, released Wednesday, showed Jushi generating more than $70 million in quarterly revenue for the second consecutive period. Wholesale revenue increased 40% year over year to $9.7 million, setting a company record for the second consecutive quarter, while retail revenue rose 3.5% to $60.8 million.

Net losses narrowed to $12.5 million from $23.7 million a year earlier. Adjusted EBITDA increased to $13.6 million from $12.8 million, although the adjusted EBITDA margin slipped slightly to 19.3% from 19.5%.

For Jushi, the numbers point to improving operating performance in several key markets. They also highlight the financial balancing act facing cannabis operators as they prepare for new recreational markets while managing debt, capital requirements and persistent pricing pressure.

Wholesale Growth Drives the Quarter

Jushi’s wholesale business delivered the strongest growth during the quarter, benefiting from higher production volumes, improved product quality and expanded distribution.

Massachusetts contributed approximately $1.1 million in additional wholesale revenue compared with the prior year, while Pennsylvania added $700,000. Virginia wholesale revenue also increased by $700,000, and Ohio contributed another $200,000.

Retail growth was more modest, reflecting a combination of higher transaction volumes and competitive pricing.

Ohio retail revenue increased by $3.1 million, supported by two dispensaries added since the second quarter of 2025 and the continued maturation of recently opened stores.

Virginia contributed another $900,000 in incremental retail revenue. All six Jushi dispensaries in the state reported year-over-year sales growth, while units sold increased 11.5%.

Across the company’s retail business, unit sales increased 8.4%, although lower average selling prices and promotional activity partially offset those gains.

Jushi ended September with 42 dispensaries across eight states, compared with 41 stores across seven states a year earlier.

Profitability Improves, but Cash Flow Weakens

Jushi reported gross profit of $32.3 million, up from $30.7 million a year earlier. However, gross margin declined to 45.9% from 46.7%, reflecting the impact of lower average selling prices.

Operating income increased to $3.5 million from $2.3 million, suggesting that higher sales volumes and production efficiencies helped absorb some of the pressure on profitability.

The reduction in net losses was more pronounced, but not entirely attributable to operating improvements.

In the third quarter of 2025, Jushi recorded a $6.3 million loss related to changes in the fair value of derivatives. This year, the same category produced a $241,000 gain, contributing to the improvement in reported net results.

Cash generation presents another consideration.

Operating cash flow declined to $3.5 million from $6.1 million a year earlier, despite higher revenue and adjusted EBITDA. The company attributed the decline partly to the timing of working capital items.

Jushi finished the quarter with $30.9 million in cash, cash equivalents and restricted cash, after spending approximately $2.9 million on capital expenditures.

Meanwhile, gross debt subject to scheduled repayments stood at $215.6 million, excluding leases, certain equipment financing obligations, and $21.5 million in notes payable to Sammartino that the company says it currently has no obligation to repay.

Net interest expense alone totaled approximately $10.2 million during the quarter, underscoring the cost of servicing the company’s financial obligations.

Virginia Becomes the Next Growth Catalyst

While wholesale expansion contributed most visibly to third-quarter growth, management identified Virginia as Jushi’s most significant near-term opportunity.

The state is scheduled to begin adult-use cannabis sales on July 1, 2027, potentially opening a new consumer market for existing medical operators.

Jushi already operates six dispensaries in Virginia and has been preparing its cultivation, processing, and retail infrastructure for the transition.

The company reported record Virginia retail revenue for the second consecutive quarter, along with record home delivery sales.

Management is evaluating cultivation and processing investments and exploring financing alternatives to support additional capacity ahead of the anticipated recreational launch.

“Virginia remains our most significant near-term growth opportunity as we prepare for adult-use sales, which are scheduled to begin July 1, 2027. We are advancing cultivation and processing projects, exploring financing alternatives to support these investments, and preparing a retail network originally designed with adult use in mind. We remain focused on liquidity and disciplined capital allocation, with investment decisions guided by regulatory timing and financing availability,” said Jim Cacioppo, the Company’s Chairman and Chief Executive Officer.

The opportunity, however, comes with financial constraints. Expanding production and distribution capacity requires capital at a time when Jushi is prioritizing liquidity and disciplined spending.

That makes the timing of Virginia’s regulatory rollout, and the availability of financing, important variables in the company’s growth outlook.

Virginia’s anticipated transition to adult-use cannabis sales in 2027 will be a key test for operators like Jushi, particularly as companies weigh expansion opportunities against financing constraints and regulatory uncertainty. With these developments unfolding just across the Potomac from Washington, D.C., the intersection of state-level growth, federal policy, and access to capital will be front and center at IgniteIt’s Cannabis Capital & Policy Summit on November 18 in Washington, D.C., where industry executives, investors, and policymakers will gather to discuss the forces shaping the next phase of the U.S. cannabis market.