Executive Summary

Revenue of $286.9M grew 4.2% Y/Y; gross margin expanded 280 bps Y/Y to 51.4% on operational efficiencies and favorable retail inventory pricing, while Adjusted EBITDA was $89.2M (31.1% margin). GAAP EPS was $0.04 as SG&A rose on litigation and compensation costs .
Versus third-party consensus, revenue beat by ~$3.9M while EPS missed by $0.02; S&P Global consensus was unavailable via our system at the time of analysis .
Balance sheet de-risked: closed a $150M five-year syndicated credit facility at SOFR+500 bps, and retired $225M of senior secured debt due April 2025; cash ended Q3 at $173.6M, total debt $255.6M .
Strategic catalysts: adult-use launch in Ohio on Aug 6 across all five RISE dispensaries, four new store openings (3 FL, 1 NY), and a new $50M share repurchase authorization through Sep 2025 .

What Went Well and What Went Wrong

What Went Well

Margin resilience: Gross margin expanded to 51.4% (from 48.6% Y/Y) despite price compression, driven by operational efficiencies and favorable retail inventory pricing .
Cash generation after taxes: Q3 operating cash flow of $48M after $35M of taxes; nine‑month operating cash flow totaled $152M net of $88M of tax payments .
Strategic financing and footprint: Secured first-of-its-kind bank-only $150M facility (SOFR+500 bps, due 2029) to refinance 2025 debt; launched adult-use sales in Ohio and opened four stores, supporting growth and market share gains .

Management quote: “This transaction strengthens our balance sheet... The new facility matures in 2029, giving us five years of valuable time to continue executing our growth strategy... Good news, it’s still Day One — every day.” — Ben Kovler, CEO .

What Went Wrong

EPS pressure: GAAP EPS fell to $0.04 vs $0.09 in Q2, with SG&A rising to $105.0M (36.6% of revenue) due to costs tied to ongoing claims/litigation and compensation .
Retail comp softness: Comparable-store sales declined 2.7% Y/Y on a base of 82 stores; retail revenue grew just 0.3% Y/Y amid ongoing price compression .
EBITDA step-down Q/Q: EBITDA declined to $71.1M (24.8% margin) from $82.0M in Q2, though Adjusted EBITDA margin remained healthy at 31.1% (vs 33.5% in Q2) .

Financial Results

Metric	Q1 2024	Q2 2024	Q3 2024
Revenue ($USD Millions)	$275.806	$280.147	$286.865
GAAP Net Income ($USD Millions)	$31.076	$20.712	$8.616
Diluted EPS ($)	$0.13	$0.09	$0.04
Gross Profit Margin %	52.5%	53.7%	51.4%
Adjusted EBITDA ($USD Millions)	$90.548	$93.796	$89.192
Adjusted EBITDA Margin %	32.8%	33.5%	31.1%
SG&A ($USD Millions)	$74.258	$96.500	$104.967
SG&A % of Revenue	26.9%	34.4%	36.6%

Q3 vs Consensus (Third-Party; S&P Global unavailable)

Metric	Actual Q3 2024	Consensus	Beat/(Miss)
Revenue ($USD Millions)	$286.87	$282.95	+$3.92
GAAP EPS ($)	$0.04	$0.06	-$0.02

Note: S&P Global consensus metrics were unavailable via our system at the time of analysis.

KPIs and Balance Sheet

KPI	Q1 2024	Q2 2024	Q3 2024
Retail revenue Y/Y	+7.9%	+8.8%	+0.3%
Comp-store sales Y/Y	+1.8%	+2.3%	-2.7%
CPG gross revenue Y/Y	+19.3%	+17.3%	+10.0%
Stores at period-end	93	97	98
New stores opened	—	2 (FL)	4 (3 FL, 1 NY)
Ohio adult-use	—	—	Launched Aug 6 at 5 dispensaries
Cash & Equivalents ($M)	$223.937	$196.142	$173.641
Total Debt ($M)	$309.9	$309.7	$255.6
CFO ($M)	$84 (quarter)	$20 (quarter)	$48 (after $35M taxes)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Formal financial guidance (revenue, margins, EPS)	FY/Q4 2024	None provided	None provided	Maintained (no formal guidance)
Share repurchase authorization	9/23/2024–9/22/2025	Prior program expired; 6.5M shares repurchased for $73.3M	New $50M authorization (up to 10,573,860 shares)	New program
Credit facility	Through 2029	N/A	$150M, SOFR + 5.00%	New facility
Debt maturity	2025 (prior senior secured)	$225M due Apr 30, 2025	Retired	De-risked maturity wall

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2 2024)	Current Period (Q3 2024)	Trend
Regulatory/tax (280E; rescheduling)	“No clarity on the rescheduling process as the DEA continues to drag its feet”; continued tax burden under 280E	Focus shifted to financing de‑risking; taxes still a meaningful headwind (paid $35M in Q3)	From regulatory frustration to balance-sheet action
Price compression	Noted as a headwind in H1	Continued price compression partially offset by operational efficiencies and favorable retail inventory pricing	Headwind persists; partially mitigated
Retail/footprint & new markets	Ongoing store openings; preparing for Ohio	Launched adult-use in Ohio (Aug 6); opened 4 stores (3 FL, 1 NY)	Expansion accelerating; Ohio a new tailwind
Brands/CPG performance	“Market share gains” and brand focus	“Meaningful market share gains” across CPG in multiple states; CPG gross revenue +10% Y/Y	Positive momentum sustained
Capital structure/returns	Share repurchases ongoing	$150M bank facility at SOFR+500 bps; $50M new buyback authorization	De-risked liquidity; incremental buybacks
Legal/regulatory (litigation)	Limited mention	SG&A increase driven by ongoing claims/litigation and compensation	Elevated near term expense risk

Management Commentary

“Our team delivered… $287 million in revenue, Adjusted EBITDA of $89 million or 31% of revenue, and $48 million of cash flow from operations… after paying $35 million in taxes in the quarter.” — Ben Kovler, CEO .
“We… entered a five-year, $150 million syndicated bank loan facility… [that] allows us to retire our previous $225 million senior secured debt that matured in 2025… we plan to double down on our efforts to build brands that Americans want and love.” — Ben Kovler, CEO .
“We… launched legal sales in Ohio in early August and opened four new RISE Dispensaries… [and] continued to make meaningful market share gains across our Consumer Packaged Goods brand portfolio.” — Anthony Georgiadis, President .

Q&A Highlights

Participants included analysts from Canaccord Genuity, Alliance Global Partners, and others; the full transcript is hosted externally .
Management emphasized continued focus on operational excellence and brand strength, discussed the Ohio adult-use launch timing and market share gains, and reviewed SG&A drivers (litigation, compensation) referenced in the press release .
Balance sheet strategy and financing terms (SOFR + 5.00% through 2029) were highlighted as key de-risking actions .

Note: We were unable to retrieve the full call transcript text through our document tools; the above themes triangulate the company’s published materials and the hosted transcript reference.

Estimates Context

S&P Global consensus estimates were unavailable via our system at the time of analysis.
Third-party source indicates Q3 revenue beat by ~$3.92M on $286.87M reported; GAAP EPS of $0.04 missed by $0.02 versus consensus .
Given the EPS miss alongside revenue strength, near-term estimate revisions may reflect higher SG&A/litigation expense and slightly lower EBITDA margin versus Q2, partially offset by Ohio adult-use tailwinds .

Key Takeaways for Investors

Revenue growth (+4.2% Y/Y) with resilient gross margins (51.4%) underscores execution despite price compression; however, higher SG&A pressured EPS, a focal point for near-term sentiment .
Financing de-risking (SOFR+500 bps facility; 2025 debt retired) reduces refinancing risk and supports optionality for buybacks and capex; this, combined with $173.6M cash, is a constructive medium-term setup .
Ohio adult-use launch and four new stores should support continued top-line momentum into Q4 and 2025; watch for comp trends to stabilize from Q3’s -2.7% .
Adjusted EBITDA margins remain healthy (31.1%), but monitor litigation-related SG&A and any incremental legal developments as potential overhangs to EPS leverage .
Shareholder returns via the new $50M repurchase authorization provide a backstop; deployment cadence will hinge on cash generation after taxes and growth opportunities .
Net-net: balanced print with a revenue beat but EPS miss; stock reaction likely hinges on comfort with SG&A normalization path and conviction in Ohio/NY growth vectors alongside balance sheet de-risking .

Sources: Company press release and 8-K including financial schedules and non-GAAP reconciliations; related financing and buyback releases; external transcript host as referenced above .

Green Thumb Industries Inc. (GTBIF)·Q3 2024 Earnings Summary