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JH

Jushi Holdings Inc. (JUSHF)·Q3 2025 Earnings Summary

Executive Summary

  • Revenue of $65.7M grew 6.6% y/y and 1.0% q/q; gross margin expanded to 46.7% (+220 bps q/q, +125 bps y/y) on higher yields/product quality and better grower-processor performance, while retail and wholesale both contributed; however, EPS missed as non-cash derivative losses and interest expense pressured GAAP earnings .
  • Bottom line: net loss widened to $23.7M (vs. $16.0M y/y; $12.3M q/q) on $6.3M derivative loss and $10.3M interest expense, despite stronger operating profit; Adjusted EBITDA was $12.8M (19.5% margin), -6.7% q/q and +23.7% y/y .
  • Against S&P Global consensus, revenue slightly missed ($66.7M* est. vs. $65.7M actual) and EPS missed (-$0.05* est. vs. -$0.12 actual), suggesting non-operational items weighed more than anticipated; Q/Q, Q2 had modest beats while Q3 reverted below on EPS* [GetEstimates].
  • Liquidity/capital structure: $26.2M cash including restricted; Manassas mortgage modified (+$4.0M proceeds, floor cut to 7.50%, maturity to Sep-2030), but $47.3M of term loans coming due within 12 months—management pursuing refinancing; 280E tax treatment keeps effective tax rate elevated (59.4% in Q3) .
  • Potential stock catalysts: New Jersey entry (Little Ferry) targeted in Q4, continued Ohio ramp (6th store opened, more planned), improving cultivation metrics (yields +13% y/y; potency above target), and balance sheet optimization/refinancing progress .

What Went Well and What Went Wrong

What Went Well

  • Margin expansion: Gross margin rose to 46.7% (+220 bps q/q; +125 bps y/y) on higher production volumes, improved quality, and stronger Massachusetts/Ohio performance; Ohio also benefited from new stores and lower costs post ramp .
  • Retail/wholesale momentum: Retail +$3.3M y/y (Ohio +$3.9M; Virginia +$1.5M), wholesale +$0.7M y/y; CEO: “wholesale sales rising 23% sequentially and 12% year-over-year, and retail sales up 6% year-over-year” .
  • Execution/footprint: 41 dispensaries across seven states (vs. 35 y/y); 821 new SKUs in Q3; branded mix steady at 56% of retail sales .

What Went Wrong

  • GAAP earnings pressure: Net loss widened to $23.7M driven by $6.3M fair value loss on derivatives and $10.3M interest expense, outweighing operating income gains .
  • Opex and competitive intensity: Operating expenses rose to $28.3M (+11.9% q/q), with higher D&A and professional/legal costs; ongoing price competition required promotions in certain markets (IL, NV, MA) .
  • Elevated tax burden from 280E: Effective tax rate 59.4% (Q3), with rising unrecognized tax benefits ($171.2M incl. interest/penalties), continuing to depress GAAP earnings despite operational improvements .

Financial Results

Income statement trends and profitability

MetricQ3 2024Q1 2025Q2 2025Q3 2025
Revenue ($USD Millions)$61.6 $63.8 $65.0 $65.7
Gross Profit ($USD Millions)$28.0 $25.8 $28.9 $30.7
Gross Margin (%)45.4% 40.4% 44.5% 46.7%
Net Loss ($USD Millions)$(16.0) $(17.0) $(12.3) $(23.7)
Diluted EPS ($)$(0.08) $(0.09) $(0.06) $(0.12)
Adjusted EBITDA ($USD Millions)$10.3 $9.8 $13.7 $12.8
Adjusted EBITDA Margin (%)16.8% 15.4% 21.1% 19.5%

Notes: Q3 widened net loss primarily on derivative fair value losses and interest expense, despite improved operating metrics .

Revenue mix and KPIs (YoY)

KPIQ3 2024Q3 2025
Retail Revenue ($USD Millions)$55.4 $58.8
Wholesale Revenue ($USD Millions)$6.2 $6.9
Jushi-Branded % of Retail55% 56%
Operating Dispensaries (States)35 (7) 41 (7)

Cash and liquidity snapshot

MetricQ1 2025Q2 2025Q3 2025
Cash, Cash Equivalents & Restricted Cash ($USD Millions)$27.9 $25.2 $26.2
Net Cash from Operations ($USD Millions)$7.5 (Q1) $(1.9) (Q2) $6.1 (Q3)
Capex ($USD Millions)~$4.0 (Q1) ~$4.1 (Q2) ~$4.9 (Q3)
Total Gross Debt Subject to Scheduled Repayments ($USD Millions)$191.2 (as of 3/31) $192.0 (as of 6/30) $194.3 (as of 9/30)

Guidance Changes

No formal quantitative financial guidance was provided. Management updated opening timelines and footprint plans.

MetricPeriodPrevious GuidanceCurrent GuidanceChange
First NJ dispensary (Little Ferry) opening2H25“Late Q3 or early Q4 2025” “Expect to launch first NJ store in Q4 2025” Timing narrowed to Q4 (slight push from late Q3 window)
Ohio expansion2H256th OH store in Parma expected late Q3/early Q4 Parma opened in Q3; Springdale planned by year-end Executed/opened and maintained
Additional NJ and OH locationsLate 2025–H1 20262 NJ and 1 OH by YE 2025 or early 2026 Little Ferry NJ and Springdale OH by YE 2025; Mount Laurel NJ in H1 2026 Specific sites/dates updated
Capital structureOngoingn/aManassas mortgage modified: +$4.0M proceeds, maturity extended to Sep-2030, floor to 7.50% Favorable modification completed

Earnings Call Themes & Trends

Note: Q3 2025 earnings call transcript was not available in our document set at time of review; themes reflect 8-K/10-Q commentary.

TopicPrevious Mentions (Q1 2025, Q2 2025)Current Period (Q3 2025)Trend
Retail expansion (OH, NJ)Q1: 40 stores; OH acquisitions and new openings; NJ entry planned 41 stores; Parma OH opened; NJ Little Ferry targeted Q4; more openings outlined Positive execution; timelines refined
Pricing/marginsQ1: Gross margin pressure from competition; mix/pricing compression GM 46.7% (+220 bps q/q, +125 bps y/y) on yields/quality; competition persists in some states Improving margin trajectory with operational offset
Regulatory/tax (280E, ERC)ERC proceeds received; 280E position maintained Effective tax rate 59.4%; unrecognized tax benefits up; additional ERC/interest in “Other” Tax headwind persists; ERC provides some offset
Capital structure/liquidityTerm loans issued (’24); second lien notes (’25); footprint optimization Manassas mortgage favorable modification; $47.3M term loans due within 12 months; refinancing planned De-risking one facility; near-term maturity focus
Product/brandNew SKUs and brand launches (e.g., partnership brand) 821 new SKUs; branded mix steady at 56%; potency/yields improved Ongoing innovation supporting mix/margins

Management Commentary

  • “Higher yields, enhanced product quality, and more efficient operations are allowing us to serve both our retail network and wholesale partners more effectively, driving stronger sales, expanding margins, and fueling growth across the business.” — Jim Cacioppo, CEO .
  • “Facility enhancements drove average yields up 13% year-over-year, with average THCa potency surpassing our annual target by more than 10%.” — Jim Cacioppo, CEO .
  • “We remain proactive in identifying opportunities to enhance our balance sheet… [Manassas] mortgage amendment delivered an additional $4.0 million in proceeds, extended the maturity to September 2030, and reduced the interest rate floor…” — Jim Cacioppo, CEO .

Q&A Highlights

Earnings call transcript for Q3 2025 was not available in our system; no Q&A details to report at this time [ListDocuments: none for earnings-call-transcript 10/01–11/30/2025].

Estimates Context

Consensus vs. actual (S&P Global unless noted):

  • Q3 2025 revenue: $66.7M* est. vs. $65.7M actual → miss ~$1.0M (~1.5%); EPS: -$0.05* est. vs. -$0.12 actual → miss $0.07 .
  • Q2 2025 revenue: $64.7M* est. vs. $65.0M actual → beat ~$0.4M (~0.6%); EPS: -$0.065* est. vs. -$0.06 actual → beat $0.005 .
  • Q1 2025 revenue: $65.9M* est. vs. $63.8M actual → miss ~$2.1M (~3.2%); EPS: -$0.06* est. vs. -$0.09 actual → miss $0.03 .
  • FY 2025 revenue est.: $263.6M*; EPS est.: -$0.29* [GetEstimates].
    Values retrieved from S&P Global.*

Detailed estimates table

MetricQ1 2025Q2 2025Q3 2025FY 2025
Revenue Consensus Mean ($USD Millions)65.9*64.7*66.7*263.6*
Actual Revenue ($USD Millions)63.8 65.0 65.7 —
Primary EPS Consensus Mean ($)-0.06*-0.065*-0.05*-0.29*
Actual EPS ($)-0.09 -0.06 -0.12 —
Primary EPS – # of Estimates2*2*2*3*

Note: S&P “EBITDA Consensus Mean” exists but may not be directly comparable to company-reported Adjusted EBITDA; use with caution.*

Key Takeaways for Investors

  • Operational momentum: Sequential revenue growth and margin expansion reflect tangible benefits from cultivation/process improvements and Ohio/Virginia retail growth; branded mix at 56% supports margins .
  • GAAP earnings headwinds persist: Elevated interest expense and derivative revaluation losses drove a wider net loss despite better operating income; 280E materially inflates effective tax rate, suppressing EPS .
  • Liquidity balanced with near-term maturities: $26.2M cash including restricted; Manassas mortgage extended to 2030 and +$4.0M proceeds, but ~$47.3M term loans mature within 12 months; refinancing is a near-term overhang and potential catalyst .
  • Footprint catalysts: NJ market entry (Little Ferry) targeted in Q4, continued Ohio buildout, and additional NJ (Mount Laurel) planned H1 2026—store openings and regulatory milestones likely to drive sentiment .
  • Competitive pricing remains a watch item: Illinois/Nevada/Massachusetts saw pressure and promotions; continued focus on mix, quality and verticality needed to sustain margins .
  • Cash generation improving: Q3 operating cash flow positive ($6.1M) with disciplined capex; ERC-related receipts provided incremental non-operating cash, partially offsetting high cash interest .
  • Estimate revisions: Given Q3’s EPS miss driven by non-operational items, models may shift toward stronger Adjusted EBITDA but weaker GAAP EPS near term; monitor refinancing path and tax developments for de-risking.*

Supporting detail on the “why”

  • Margin expansion was driven by higher yields and product quality improvements at grower-processors (notably MA/OH) and lower unit costs post ramp in Ohio .
  • Retail growth y/y was led by Ohio (+$3.9M) and Virginia (+$1.5M), partially offset by competitive pricing in IL/NV/MA; wholesale rose y/y but fell in Virginia on lower partner demand .
  • Non-GAAP adjustments: Q3 Adjusted EBITDA of $12.8M reflects adding back $6.3M derivative losses, $10.3M interest, $8.8M taxes and $7.8M D&A; Adjusted EBITDA margin 19.5% .
  • Tax: Effective tax rate 59.4% reflects 280E positions, interest/penalties accrual, and state taxes; unrecognized tax benefits increased to $171.2M .

Additional references

  • Balance sheet/Statements detail (assets, liabilities, cash flows) .
  • Debt schedule, covenants, and maturities .
  • Manassas mortgage modification terms and use of proceeds .