💸 The Tape

Jushi Holdings has spent the last year doing the kind of unglamorous work that doesn't generate headlines but builds real businesses: fixing operations, improving product quality, and cleaning up the balance sheet. The Q1 2026 results suggest that work is starting to show up in the numbers.

The vertically integrated multi-state operator reported Q1 2026 revenue of $66.4 million, up 4% year-over-year, with gross profit margin expanding 460 basis points to 45% — the kind of margin improvement that signals genuine operational progress rather than accounting noise. Adjusted EBITDA came in at $11.4 million at a 17.2% margin, and the company generated $8.6 million in operating cash flow during the quarter.

For a company that has navigated significant financial complexity over the past two years, the trajectory is pointing in the right direction.

Margin Expansion Is the Story

The headline isn't the top line — 4% revenue growth is modest by any standard. The real story is what's happening beneath it. A 460 basis point year-over-year improvement in gross margin — from roughly 40.4% to 45% — reflects tangible improvements across Jushi's grower-processor network, where operational efficiencies, increased production volumes, and higher product quality are translating directly into better economics.

Gross profit of $29.9 million on $66.4 million in revenue means Jushi is keeping nearly half of every dollar that comes through the door before operating expenses. In a cannabis industry where margin compression has been the dominant narrative, expanding margins by nearly five full percentage points while growing revenue is a notable achievement.

CEO Jim Cacioppo attributed the improvement to "operational efficiencies and increased production volumes" across the company's cultivation and processing facilities — the kind of blocking-and-tackling work that doesn't make for exciting press releases but compounds over time.

Revenue Drivers

The 4% revenue growth was driven by a combination of wholesale expansion and retail footprint additions. Wholesale revenue benefited from increased distribution, higher production capacity, and strong demand in key markets — particularly Massachusetts and Ohio. On the retail side, contributions from the company's Ohio expansion (including a second Beyond Hello™ location in the Cincinnati metro area, bringing the state total to seven) and strong performance across Virginia provided incremental revenue.

Jushi-branded products continued to gain share within the company's own retail network, representing 58% of retail revenue across Jushi's five vertical markets, up from 56% in Q1 2025. That mix shift matters — selling your own branded products through your own dispensaries captures margin at both the manufacturing and retail level, creating the kind of vertical integration economics that justify the complexity of operating across the entire supply chain.

The company also introduced 567 new unique SKUs during the quarter — spanning flower, pre-rolls, vapes, concentrates, and edibles — reflecting an active product development pipeline designed to meet diverse patient and consumer preferences across multiple states.

The Refinancing

Jushi completed a significant balance sheet restructuring during the quarter, refinancing its 2024 senior secured term loan and second lien notes — which carried a combined principal balance of approximately $132.3 million — through a new $160 million secured term loan at 12.5% interest, due in 2029. The new facility was issued at a 4% original issue discount.

Both Cacioppo (through an affiliated entity) and significant equity holder Denis Arsenault participated in the refinancing — a signal of insider confidence that carries weight when a company is asking lenders to commit $160 million.

Proceeds were used to fully repay the prior debt facilities, cover associated fees and expenses, with excess proceeds retained for general corporate purposes. The result: extended maturities, improved liquidity, and a cleaner capital structure heading into what could be a transformational period for U.S. cannabis.

The Rescheduling Tailwind

The Schedule III rescheduling of state-licensed medical cannabis carries particular significance for Jushi. Medical sales represented approximately 60% of the company's total revenue in 2025 — meaning a substantial majority of Jushi's business immediately qualifies for 280E tax relief.

The elimination of 280E on medical operations should produce a measurable improvement in Jushi's after-tax profitability and cash flow — dollars that can be redirected toward debt service, facility investments, or further operational optimization. For a company that has been managing a meaningful debt load, every freed-up dollar matters.

The broader hearing on general cannabis rescheduling begins June 29 and is expected to conclude by July 15. If recreational cannabis also moves to Schedule III, the remaining 40% of Jushi's revenue would qualify for 280E relief as well — extending the benefit across the entire business.

Virginia: The Wildcard

Jushi operates a strong retail footprint in Virginia, which makes the state's ongoing legalization drama directly relevant to the company's growth trajectory. The Virginia General Assembly passed adult-use sales legislation, the governor proposed amendments, lawmakers rejected those amendments, and the original bill was returned to Governor Spanberger, who has until May 23 to sign, veto, or allow it to become law without her signature.

If Virginia launches adult-use sales — potentially as early as January 2027 under the original bill — Jushi's existing dispensary network would gain access to a dramatically larger consumer base. Cacioppo noted that the transition "is expected to expand our customer base and increase demand," while appropriately caveating that "the timing and extent of any revenue impact remain uncertain."

The company also announced its intention to seek shareholder approval to redomicile its parent entity from British Columbia to Nevada — aligning its corporate structure with its U.S. operations and potentially positioning for future opportunities like major exchange uplisting as the regulatory environment continues to evolve.

The Bottom Line

Jushi's Q1 2026 isn't a quarter that announces itself with explosive growth numbers. It's a quarter that demonstrates operational improvement, financial discipline, and strategic positioning — the kind of foundational work that compounds into meaningful results over time.

45% gross margins. 460 basis points of year-over-year expansion. Positive operating cash flow. A refinanced balance sheet. 60% medical revenue mix positioned for immediate 280E relief. And a Virginia market that could unlock significant upside within the next year.

Cacioppo has been saying for quarters that the focus is on "operational excellence and disciplined execution." The Q1 numbers suggest that's not just a talking point — it's starting to become the financial reality.

📈 Dog Walkers

$ATAI ( ▲ 2.72% ) Reports Q1

The clinical-stage biotech reported Q1 2026 results that are less about financial performance (it's a pre-revenue drug development company) and more about pipeline execution and runway. On both fronts, the update was reassuring. The company holds $209.9 million in cash and short-term securities, which it expects to fund operations into 2029 — critically, through anticipated Phase 3 topline readouts for its lead candidate. In drug development, having enough cash to reach your most important data milestone without needing to raise is everything.

BPL-003: The Main Event

The company's flagship program — BPL-003 (mebufotenin benzoate), an intranasal spray for treatment-resistant depression (TRD) — remains on track to initiate its Phase 3 ReConnection program this quarter. The pivotal program consists of two studies: ReConnection-1 (~350 patients) and ReConnection-2 (~230 patients), with the primary endpoint measuring change from baseline in MADRS total score at Week 4. Both studies include 52-week open-label extensions allowing retreatment at 8- or 12-week intervals.

BPL-003 holds FDA Breakthrough Therapy Designation and delivered compelling Phase 2a results showing a 66.7% response rate by Day 2 from a single intranasal dose — data that was recently published in CNS Drugs. Phase 3 topline readouts are anticipated in early 2029.

The Rest of the Pipeline

VLS-01, a DMT buccal film also targeting TRD, continues progressing through its Phase 2 Elumina study, with topline results expected in Q4 2026. Meanwhile, EMP-01 — an oral R-MDMA formulation for Social Anxiety Disorder — delivered Phase 2a data showing consistent improvements across clinician-rated, patient-reported, and real-world behavioral outcomes.

Three clinical programs, three distinct mechanisms, all advancing simultaneously. It's the kind of pipeline diversification that de-risks the overall platform even if any single program stumbles.

The Numbers

R&D spending increased to $17.4 million from $11.3 million year-over-year, reflecting the ramp toward Phase 3 and the integration of Beckley Psytech following the November 2025 combination. G&A rose to $14.4 million. Net loss was $29.8 million — expected for a company investing aggressively in late-stage clinical development.

AtaiBeckley was also added to the S&P Biotechnology Select Industry Index and CRSP U.S. indices during the quarter — expanding its visibility to institutional and passive investors at exactly the right moment in its clinical timeline.

$VREOF ( ▲ 0.75% ) Performed

Vireo Growth isn't just growing — it's assembling an empire at a pace the cannabis industry hasn't seen in years.

The company reported Q1 2026 GAAP revenue of $106.2 million, up 333.5% year-over-year, driven by a string of closed acquisitions that has transformed Vireo from a mid-tier operator into the 4th largest cannabis company in the U.S. on a pro forma basis. Adjusted EBITDA hit $32.7 million at a 30.8% margin — nearly 400% higher than the prior year — while gross profit margin expanded to 55.8%.

The M&A activity reads like a highlight reel. During Q1, Vireo closed its acquisition of Schwazze, adding 45 dispensaries and two manufacturing facilities across Colorado and New Mexico, and activated a management services agreement tied to its pending PharmaCann asset acquisition. Post-quarter, the company completed its merger with Eaze (California delivery and dispensaries), closed the acquisition of Hawthorne Gardening Company from Scotts Miracle-Gro, announced a California retail joint venture with Glass House Brands, and entered into a definitive agreement to acquire FLUENT Corp. in an all-stock deal that would add approximately 74 dispensaries in Florida.

On a pro forma basis — giving effect to all acquisitions as if completed January 1, 2025 — Vireo generated $210.2 million in revenue (up 5% year-over-year) and pro forma adjusted EBITDA of $42.2 million at a 20.1% margin, representing 29.8% growth.

The company ended Q1 with $137.8 million in cash and, perhaps most tellingly, signaled it "expects to remain acquisitive."

CEO John Mazarakis kept the commentary characteristically brief: the focus is on "integration and optimization" while remaining "opportunistic with respect to further acquisition related growth opportunities."

For Vireo, Q1 2026 wasn't a quarter — it was a launchpad. The question now is whether integration can keep pace with ambition.

🗞️ The News

📺 Trade To Black

Featured Organigram ($OGI) CEO James Yamanaka and Village Farms ($VFF) CEO Michael DeGiglio breaking down their latest earnings live. Yamanaka highlighted Organigram's Q2 Fiscal 2026 net revenue of $59.8M (-9% YoY) and adjusted EBITDA of $0.9M, along with raised full-year guidance. DeGiglio recapped Village Farms' Q1 2026 results including net sales of $50.2M (+27%), record international exports surging 171%, and adjusted EBITDA +118%.