💸 The Tape

In the cannabis sector, where fortunes can flip faster than a poorly rolled pre-roll, Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF) has once again proven that steady execution beats flashy highs. The national powerhouse, known for its RISE Dispensaries and consumer favorites like RYTHM and incredibles, dropped its Q4 and full-year 2025 earnings on February 25, 2026 — and the numbers tell a story of resilience in a market squeezed by price compression and competition.

Let’s start with the headline figures. Fourth-quarter revenue hit $311.1 million, up 5.7% from the prior year, capping a full-year total of $1.2 billion — a 3.4% increase despite the industry’s ongoing deflationary pressures. Cash at quarter-end stood at a robust $274.3 million, bolstered by $90.0 million in Q4 operating cash flow and $294.9 million for the year. GAAP net income rang in at $83.2 million for Q4 ($0.36 basic/$0.35 diluted EPS) and $114.2 million annually ($0.49 basic/$0.48 diluted EPS). Normalized EBITDA? $100.2 million (32.2% of Q4 revenue) and $348.4 million (29.6% annually) — solid metrics that underscore operational grit.

Founder, Chairman, and CEO Ben Kovler didn’t hold back on the pride: “The Green Thumb team delivered record fourth-quarter revenue of $311 million, up 5.7% year-over-year, capping a year in which full-year revenue grew 3.4% to $1.2 billion despite ongoing price compression. Normalized EBITDA for the year was $348 million and cash flow from operations was $295 million. We ended 2025 with cash of $274 million and considerable financial flexibility through a senior credit facility that does not mature until September 2029. In addition, last week’s $50 million increase to that credit facility brings new cash onto an already strong balance sheet to deploy for the benefit of shareholders.”

Kovler highlighted the team’s laser focus on efficiencies, balance-sheet fortification, and expansion. Retail grew by 12 locations to 113 stores nationwide, with adult-use launches in Minnesota (eight RISE spots transitioned in September) and ongoing Ohio momentum driving gains. Brand-building shone through events like the RYTHM Bud Ball concert series, drawing over 4,000 fans across three cities, and the spotlight on RYTHM Icon Strains — premium genetics that keep consumers coming back.

Third-party data from BDSA painted an even brighter picture: RYTHM claimed the No. 1 flower brand spot nationwide, with its Animal Face strain as the top-selling flower unit in the country. Dogwalkers dominated uninfused pre-rolls, and incredibles ruled the chocolate category. “These category-leading positions reinforce what we have always known: consumers want high-quality products they can trust, and our team continues to deliver,” Kovler added. In a market where trust is currency, Green Thumb’s portfolio is minting loyalty.

President Anthony Georgiadis echoed the theme of disciplined capital stewardship: “Our strong balance sheet and consistent cash generation provide the foundation for disciplined capital allocation and long-term value creation. In 2025, we invested in high-return growth opportunities, expanding our retail footprint by 12 stores to 113 locations across 14 states. Our strategy of investing ahead of adult-use legalization continues to deliver results, most notably in Minnesota, where our eight RISE Dispensaries transitioned to adult-use in September and contributed meaningfully to fourth quarter performance.”

Georgiadis pointed to shareholder returns as a core pillar. Since September 2023, the company has repurchased the equivalent of approximately 15.5 million Subordinate Voting Shares for $121.8 million — a move that screams confidence. In Q4 alone, they snapped up about 2.0 million equivalent shares for $14.1 million, with the board authorizing up to $50 million more through September 2026. Additionally, in December 2025, Green Thumb bought 5,000 Super Voting Shares for roughly $4 million outside the program.

Strategic plays extended beyond buybacks. A recent investment in RYTHM, Inc. (Nasdaq: RYM) and the separation of hemp and cannabis ops via IP sales created a federally compliant, non-plant-touching entity — positioning both arms to thrive amid regulatory flux and rising THC demand. “This structure enables RYTHM, Inc. to operate as a non-plant-touching, federally compliant business while allowing us to continue manufacturing cannabis products under licensing agreements,” Georgiadis explained.

Diving deeper into the financials: Q4 revenue growth stemmed largely from Minnesota’s adult-use debut on September 17, 2025, offsetting price dips elsewhere. Consumer Packaged Goods (CPG) gross revenue slipped 1% in Q4 but rose 4% annually, fueled by Minnesota, Ohio’s adult-use ripple, and gains in Florida and New York. Retail revenue climbed 5% in Q4 and 1% yearly, with comparable sales down 1.8% on a 99-store base — a testament to expansion offsetting compression.

Gross profit for Q4 landed at $141.3 million (45.4% margin), down from $158.1 million (53.7%) the prior year, with full-year at $574.9 million (48.9%) versus $601.1 million (52.9%). The margin squeeze? Purely price pressure. SG&A expenses rose to $122.3 million (39.3% of Q4 revenue) and $437.2 million annually (37.2%), driven by new store openings and comp hikes.

Other income swung wildly positive at $109.4 million in Q4, thanks to $125.9 million in fair value adjustments on related-party warrants tied to a $10 million note repayment — stripping that, it was ($16.6) million from equity investment tweaks. Annually, other income hit $125.7 million, or ($0.3) million adjusted.

EBITDA for Q4 was $75.3 million (24.2%), with normalized at $100.2 million after adding back $11.0 million in stock comp and $7.1 million in non-ops. Full-year normalized EBITDA dipped to $348.4 million from $371.3 million, reflecting the compression headwinds.

Balance sheet strength remains a Green Thumb hallmark. Current assets totaled $577.2 million, with $274.3 million cash. Debt stood at $244.9 million, including $142.5 million senior — bumped to $189 million post-quarter via the $50 million credit add-on. Shares outstanding: 231.9 million basic, 234.4 million diluted.

Looking ahead, Q1 2026 revenue is eyed down mid-single digits sequentially on pricing and seasonality. Capex holds steady at ~$80 million, matching 2025’s spend. Kovler wrapped with optimism: “While cannabis reform in D.C. continues to stall, we have the flexibility to act and be aggressive in what we believe is a major new consumer category. As we move through 2026, we believe Green Thumb is well positioned.”

Non-GAAP reconciliations are tucked in the release, but the message is clear: in a sector plagued by volatility, Green Thumb’s model — durable ops, cash focus, brand muscle — is built for the long haul. Investors eyeing the stalled federal reforms might find solace here: this isn’t a company waiting for Washington; it’s thriving despite it. With adult-use expansions paying off and a war chest ready for deployment, 2026 could see Green Thumb not just growing, but dominating.

📈 Dog Walkers

$IXHL ( ▼ 42.12% ) Announces Split

In the pharmaceutical world, where stock prices can fluctuate like a patient’s vital signs, Incannex Healthcare Inc. (Nasdaq: IXHL) is opting for a classic remedy: a reverse stock split.

The clinical-stage company, focused on innovative combo therapies for tough conditions, announced today that its board has greenlit a 1-for-30 reverse split to boost the per-share price and regain compliance with Nasdaq’s minimum bid requirement. Approved by shareholders at a special meeting last May, the move takes legal effect at 4:01 p.m. ET on February 26, 2026. Trading under the new CUSIP 45333F 208 kicks off February 27 on a split-adjusted basis, still under the ticker IXHL.

Here’s the math: every 30 current shares automatically convert to one new share, shrinking the outstanding count from about 358.3 million (as of February 20) to roughly 11.9 million. No change to authorized shares. Fractional shares? None issued — holders get rounded up to the next whole share, whether in book-entry or street name. Cash won’t be paid out for fractions.

Proportional tweaks will hit exercise prices on outstanding equity awards and shares under the stock incentive plan. Book-entry holders need do nothing; brokers handle street-name adjustments. Certificate owners will get swap instructions from transfer agent Computershare Trust Company, N.A.

For a company pioneering treatments, this split is less about innovation and more about stability — a strategic pivot to keep the lights on Nasdaq while advancing its pipeline. Shareholders might feel the pinch of consolidation, but it’s a calculated dose to avoid delisting delirium. As Incannex pushes forward, here’s hoping the higher price per share translates to healthier investor vitals.

$DBCCF Decibel Shores Up Cultivation Assets

In the cannabis world, sometimes you have to prune to bloom — and Decibel Cannabis Company Inc. (TSXV: DB) (OTCQB: DBCCF) is doing just that.

The Canadian branded products leader announced today a conditional sale agreement for its Creston, British Columbia property, bundling in a consolidation of its on-site cultivation ops to the company’s Battleford, Saskatchewan facility. The deal, pegged at approximately $2.5 million, will funnel all proceeds toward chipping away at recent term debt — a smart fiscal nip and tuck amid the industry’s ongoing efficiency push.

“This is a proactive step to further optimize our operating footprint and support disciplined, profitable growth,” said CEO Ben Sze. “Our cultivation capacity is well aligned with demand, and this consolidation strengthens our ability to support brand growth in Canada and our global export business. By concentrating production into fewer, higher utilized facilities, we improve efficiency, reduce complexity and strengthen our cost structure.”

The move aligns with Decibel’s strategy to streamline without skimping on output. Expected perks include $4 million in annual cost savings, zero hit to revenue outlook, boosted production efficiency via better asset utilization, and a fortified balance sheet. No layoffs mentioned, but Sze tipped his hat to the Creston team for their foundational role.

Subject to standard closing conditions, the transaction is slated for April 2026. For a company already exporting medical cannabis globally, this consolidation isn’t a retreat — it’s a recalibration, ensuring Decibel stays nimble in a market that rewards the efficient over the expansive.

In an industry where overgrowth can lead to overextension, Decibel’s decision feels like a breath of fresh (indoor-grown) air.

🗞️ The News

📺 YouTube

The Biggest Cannabis Company Kicks Off Earnings Season | TTB Powered by Flowhub

What we will cover:

✅ Earnings season is here, and on today’s episode of Trade To Black presented by Flowhub, hosts Shadd Dales and Anthony Varrell take a grounded look at what’s ahead for the cannabis sector.

First up is Green Thumb Industries (CSE: GTII | OTCQX: GTBIF), the largest operator in the space, reporting its Q4 and full‑year fiscal 2025 results after market close. To give viewers some context, the team revisits GTI’s Q3 performance, where the company reported $275 million in revenue, $11 million in net income, $83 million in adjusted EBITDA, a 30% EBITDA margin, and $61 million in operating cash flow. It’s a quick refresher before the new numbers arrive.

The episode also breaks down President Trump’s State of the Union address. There was plenty of chatter online, but the guys explain why a cannabis rescheduling announcement was never realistically on the table for that moment. They walk through the political timing and the way these decisions typically move through the system.

From there, attention shifts to Virginia, where lawmakers are actively working through the final details of adult‑use cannabis legislation. With the House General Laws Committee approving a substitute version of SB 542 in a 16–4 vote, the state is finally moving past years of possession‑only limbo and getting closer to a functioning retail framework.