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JH

Jushi Holdings Inc. (JUSHF)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue was $65.0M, up 1.9% QoQ and 0.7% YoY; Adjusted EBITDA rose 39.6% QoQ to $13.7M with margin expanding to 21.1% .
  • Net loss narrowed to $12.3M from $17.0M in Q1 2025, though YoY net loss increased vs $1.9M in Q2 2024 due to pricing pressure and higher interest expense .
  • Management reiterated retail expansion with four new openings expected by year-end or early 2026 (NJ Little Ferry and OH Parma), plus two additional locations targeted for late Q4 2025/early Q1 2026; capital priority shifting to high-return grower-processor investments ahead of regulatory catalysts in PA and VA .
  • Potential catalysts: first NJ store opening, continued Ohio adult-use ramp, and canopy expansion plans in PA (35–45% across phases discussed on call) that position margins for improvement if legalization timelines advance .

What Went Well and What Went Wrong

What Went Well

  • Sequential and YoY topline growth with revenue at $65.0M; Adjusted EBITDA increased to $13.7M with margin at 21.1%, supported by Ohio retail strength and operational improvements .
  • Jushi-branded products maintained 56% of retail revenue, indicating brand resilience across five vertical markets .
  • Management emphasized disciplined cost controls and platform enhancements: “taking hold… driving profitability, expanding margins” and streamlined footprint via ~$3M proceeds from sale of non-core Nevada assets .

What Went Wrong

  • Gross profit and margin declined YoY (GP $28.9M; 44.5% vs $32.6M; 50.4%), driven by competitive pricing pressure and lower average selling prices despite higher units .
  • Wholesale revenue fell $2.0M YoY, including Virginia (-$1.5M) due to prioritizing retail supply and state seed-to-sale tracking conversion delays; Massachusetts bulk flower declined $0.5M .
  • Net cash flows used in operations were $1.9M in Q2 vs $7.5M provided in Q1; interest expense remained elevated ($10.2M), constraining net income .

Financial Results

MetricQ2 2024Q1 2025Q2 2025
Revenue ($USD Millions)$64.6 $63.8 $65.0
Gross Profit ($USD Millions)$32.6 $25.8 $28.9
Gross Margin (%)50.4% 40.4% 44.5%
Operating Expenses ($USD Millions)$24.2 $27.6 $25.3
Net Loss ($USD Millions)$(1.9) $(17.0) $(12.3)
Diluted EPS ($USD)$(0.01) $(0.09) $(0.06)
Adjusted EBITDA ($USD Millions, Non-GAAP)$14.5 $9.8 $13.7
Adjusted EBITDA Margin (%)22.4% 15.4% 21.1%
Estimate vs Actual (Q2 2025)Revenue ($USD)EPS ($USD)# of Estimates (Rev / EPS)
Consensus$64.667M*$(0.065)*3 / 2*
Actual$65.046M $(0.0776) —
Beat/Miss+$0.379M*—$(0.0126)*—

Values retrieved from S&P Global.*

Segment breakdown (Q2 2025):

SegmentQ2 2025 ($USD Millions)YoY Change ($USD Millions)
Retail Revenue$59.4 +$2.4
Wholesale Revenue$5.6 −$2.0

KPIs and balance sheet highlights:

KPIQ2 2024Q1 2025Q2 2025
Jushi-branded % of Retail Revenue56% 56% 56%
Operating Dispensaries35 40 40
Cash, Cash Equivalents & Restricted Cash ($USD Millions)—$27.9 $25.2
Capex Paid ($USD Millions)—$4.0 $4.1
Net Cash Flows from Operations ($USD Millions)—$7.5 $(1.9)
Total Debt, Gross Principal ($USD Millions)—$212.7 gross including short-term and long-term $213.5 gross; $192.0 subject to scheduled repayments excl. Sammartino notes

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
New Store OpeningsH2 2025 to early 2026Phase 1: 7 new stores by mid-2025; Phase 2: 2 NJ + 1 OH by year-end Four openings by year-end or early 2026 (NJ Little Ferry; OH Parma), plus two additional openings targeted Q4 2025/early Q1 2026; ongoing relocations Refined timeline; expansion maintained
Capital Allocation Focus2025–2026Emphasis on retail-first expansion (“7 and 7”) Shift toward high-return grower-processor investments; opportunistic retail expansion as capital allows Strategic shift toward GP
Canopy Expansion (PA/VA)Multi-phaseNot quantifiedPA canopy expansion plan discussed at 35–45% across phases; design phase underway, contingent on regulatory/capital conditions New detail provided (conditional)
Financial Guidance (Revenue, Margin, EPS)2025Not providedNot providedMaintained (no formal guidance)

Earnings Call Themes & Trends

TopicQ-2 (Q4 2024)Q-1 (Q1 2025)Current (Q2 2025)Trend
Retail ExpansionInitiated “7 and 7”; MSAs and new stores in OH; IL opening 40 stores; plan to complete Phase 1 by end of Q3; Phase 2 adds NJ and OH Four openings by YE/early 2026; NJ Little Ferry and OH Parma pending; additional two planned Continued expansion; timeline refined
Product PortfolioLaunch of Uncommon Kind; Flower Foundry debut in VA 391 new SKUs; continued brand rollout 602 new SKUs; launch of Shayo edibles brand in VA Accelerating SKU innovation
Regional Trends (Ohio, Virginia)Adult-use transition in OH driving retail; VA growth OH and VA drove retail growth; 3 OH stores consolidated OH +$4.1M YoY; VA +$1.8M YoY; wholesale Virginia constrained OH momentum; VA strong retail; wholesale mixed
Regulatory/LegalAdult-use discussions PA; operational optimizations Monitoring adult-use pathways; factoring ERC proceeds PA adult-use discussions ongoing; NJ entry targeted; ERC receipts ~$4.0M Building for catalysts; balance sheet bolstered
Supply Chain/OperationsProduction challenges affected margins Efficiency initiatives at GP footprint Seed-to-sale conversion in VA delayed shipments; improved cost absorption from ramp Operational improvements; some system frictions

Management Commentary

  • “The topline growth we achieved this quarter both sequentially and year-over-year is an early but encouraging sign that our disciplined cost controls and targeted platform enhancements are taking hold… focused on driving profitability, expanding margins, and achieving continued sequential reductions in net loss.” – Jim Cacioppo, CEO .
  • “Our retail expansion strategy remains firmly on track… upcoming opening of our first store in New Jersey… we are now directing capital toward high-return investments in our grower-processor operations.” – Jim Cacioppo .
  • “Ohio has become an increasingly important market for us… expanding our footprint and strengthening our position across both the retail and wholesale channels.” – Jim Cacioppo .

Q&A Highlights

  • Canopy expansion and capital deployment: Management outlined a phased PA canopy expansion (35–45%) with design work underway; execution contingent on regulatory clarity and cost of capital .
  • NJ and OH timelines: NJ Little Ferry opening targeted late Q3/early Q4 pending approvals; OH Parma planned similarly; consolidations already reflected in reporting per CFO .
  • Regulatory context: Management flagged ongoing PA adult-use negotiations as potential medium-term catalyst enhancing returns on GP investments .
  • Operating cash flow and margin trajectory: Team emphasized continued operational improvements (yield/efficiency) and brand strength to support margin expansion despite price compression .

Estimates Context

  • Revenue beat: Actual $65.046M vs consensus $64.667M; beat of $0.379M* .
  • EPS: Actual $(0.0776) vs consensus $(0.065); modest miss* .
  • Coverage depth: 3 revenue and 2 EPS estimates contributed to consensus*.

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Sequential improvement in revenue and Adjusted EBITDA with margin expansion suggests operating initiatives are gaining traction despite persistent price compression .
  • Ohio adult-use and store additions, plus entry into NJ, provide near-term growth levers; watch regulatory approvals and opening timelines as catalysts .
  • Wholesale softness and seed-to-sale conversion issues in VA are transitory operational headwinds; prioritization of retail supply supports mix and per-unit economics .
  • Elevated interest burden remains a headwind to net income; balance sheet bolstered by ERC receipts and asset sales but debt service will continue to constrain GAAP profitability near term .
  • Strategic pivot toward GP investments (and planned canopy expansion) positions margins to improve if PA/VA legalization progresses; monitor policy developments closely .
  • Brand durability (56% retail mix) and SKU acceleration underpin pricing power recovery potential as markets normalize .
  • Trading setup: Near-term catalysts include NJ opening and Ohio rollout; medium-term thesis hinges on regulatory progress and execution on GP expansion, which could lift EBITDA and cash generation .

Additional documents read for context:

  • Q1 2025 8-K (results press release) .
  • Q4/FY 2024 8-K (results press release) .
  • Q2 2025 earnings press release (GLOBE NEWSWIRE) –.
  • Pre-announcement press release on earnings date/timing .