💸 The Tape

MariMed just turned in the highest quarterly revenue in its history, grew both sides of its business at nearly identical rates, and built its strongest cash position in two years. It also lost more money than it did a year ago. Welcome to cannabis, where you can do most things right and still hand the win to the IRS.

The Top Line

Third-quarter revenue came in at $44.2 million, up 8.5% year over year and 5.5% sequentially. This was not a one-legged stool. Retail grew 8.4% from a year ago to $24.5 million, while wholesale climbed 8.1% to $19.5 million. Both segments also rose more than 5% from the second quarter.

That balance matters. Plenty of operators are growing one channel by quietly starving the other. MariMed is growing both in step, which suggests the demand is real rather than a shuffling of product between pockets.

Where the Squeeze Shows Up

Growth did not come free. Non-GAAP gross margin held flat sequentially at 40.0%, but that is roughly 140 basis points lower than a year ago. Management pinned the decline on continued wholesale price compression, the industry’s least favorite recurring character.

Operating expenses rose about 8% to $15.9 million, essentially matching revenue growth. With margin slipping and costs keeping pace, there was no operating leverage to be found. Income from operations fell to $1.2 million from $1.6 million.

Adjusted EBITDA landed at $4.7 million, down from $5.1 million in the prior-year quarter, with the margin sliding to 10.5% from 12.6%. The better news is the direction of travel: adjusted EBITDA rose about 18% from the second quarter. The year-over-year comparison is unflattering, but the sequential trend is working in the company’s favor.

The 280E Problem, in One Paragraph

Here is the number that explains the entire sector. MariMed posted a pre-tax loss of $744,000 and then booked an income tax provision of $2.7 million. That is how a near-breakeven operating quarter becomes a GAAP net loss of $3.5 million, wider than the $2.9 million loss a year earlier.

The balance sheet tells the same story with less subtlety. Income taxes payable went to $34.2 million from $27.0 million at year-end. That is a $7.2 million increase in nine months. CEO Jon Levine said the company is watching federal cannabis reform, the timing of 280E tax relief, and banking reform as potential catalysts.

Brands Are Doing the Heavy Lifting

The wholesale story is where MariMed has the most to brag about. Citing industry data, the company said its branded products gained roughly 150 basis points of market share across its core markets. Those products sold into 721 stores during the quarter, up 7% sequentially and 13% year over year.

Betty’s Eddies remains the flagship, ranking as the number one edible brand in the company’s core states. Vibations drink mix, InHouse gummies, and Bubby’s Baked goods each held top 10 positions in their categories.

The more interesting data point comes from Maine, a new market the company entered through a brand licensing agreement. Betty’s Eddies has already become the number two edibles brand there. That is the “Expand the Brand” strategy working as designed: enter a market through licensing, skip the capital-intensive buildout, and let the product do the talking.

Retail: More Trips, Slightly Bigger Baskets

At the company’s Thrive dispensaries, transactions rose 7% year over year and 2% sequentially. Average order value ticked up 1% from a year ago and 3% from the second quarter. In a market where most retailers are trading basket size for traffic, growing both at once is a respectable result.

Membership in the Thrive Perks loyalty program is up 31% since the start of the year. Levine credited pricing strategy, loyalty efforts, and initiatives rolled out earlier in 2026 for the retail momentum.

Cash and the Balance Sheet

MariMed has now generated $6.7 million in operating cash flow through nine months, up from $4.3 million in the same stretch last year. Capital spending was a restrained $916,000. The company ended the quarter with $10.4 million in cash, up $1.9 million from the second quarter.

The liability side:

• Mortgages and notes payable total roughly $78.2 million, up from about $72.7 million at year-end.

• Mezzanine equity fell to $6.9 million from $14.7 million, now recorded as a new Series B convertible preferred.

• Stockholders’ equity dropped to $40.1 million from $50.0 million as losses accumulated.

• Interest expense rose to $2.0 million for the quarter.

The Capital Markets Angle

Shareholders approved a reverse stock split on October 29, and the company’s filings reference a proposed listing on a national exchange. With more than 400 million shares outstanding and a stock that currently trades on the CSE and OTCQB, the logic is clear enough: consolidate the share count, clear the listing bar, and get in front of investors who cannot or will not buy OTC names.

The timing matters, too. If federal reform delivers 280E relief, an operator with positive operating cash flow, top-ranked brands, and a national listing in hand would be positioned to benefit quickly. If reform stalls again, the reverse split simply produces fewer shares of the same story.

The Bottom Line

Levine said the focus for the fourth quarter and into 2027 is using the company’s brands, cash, and production capacity to gain share, open new accounts, and reinvest.

The quarter shows a company executing where it has control: record revenue, share gains, rising store counts, improving cash flow. It also shows the limits of that control. Price compression is eating margin, and a tax code written for drug traffickers is eating everything else.

📈 Dog Walkers

$MEDIF ( ▲ 4.0% ) Expands In Brazil

MediPharm Labs has moved from paperwork to product in Brazil. The company announced the commercial launch of a full-spectrum CBD oral oil, now available by prescription through Brazilian pharmacies.

The oil is made at MediPharm’s pharmaceutical facility in Barrie, Ontario, which holds ANVISA GMP certification. Local partner Alko do Brasil secured the Sanitary Authorization from ANVISA, Brazil’s health regulator, and is handling commercialization. MediPharm supplied the technical and regulatory support behind the dossier.

Why Brazil Is a Different Game

Brazil’s cannabis framework, in place since 2019, is built around pharmaceutical dosage forms such as oils and oral formulations. Dried flower is not the focus. Foreign manufacturers must meet ANVISA’s GMP standards and produce documentation on quality, stability, manufacturing and post-market obligations.

That is a high bar, and it works in MediPharm’s favor. The company describes itself as one of a limited number of international cannabinoid makers with the infrastructure to clear it. A regulatory moat is rarely glamorous, but it tends to keep the neighbors out.

The Size of the Prize

Citing research firm Kaya Mind, MediPharm pegs Brazil’s potential medical cannabis market at roughly C$2.58 billion. That estimate excludes conditions such as pain, stress and sleep disorders, which leaves room for a larger number if the market broadens.

One caution: the release includes no revenue, volume or deal-value figures. Investors know the product is on shelves. They do not yet know how fast it is moving.

The Bigger Picture

CEO Greg Hunter framed the launch as another step in the company’s international growth strategy. Alko Co-CEO Juliana Komel said MediPharm’s manufacturing and expertise were important throughout the process.

Brazil now joins a certification list that includes EU-GMP and compliance with Australia’s TGA requirements. MediPharm reports third-quarter results Thursday, November 12, before markets open, which should offer the first chance to ask what Brazil is worth in dollars.

📺 Trade To Black

Texas Files 3 Major Legalization Bills for 2027 | TDR Cannabis in 5

• Three legalization bills filed in Texas: Reps. Joe Moody and John Bucy III filed near-identical House bills (HB 369 and HB 362, the Texas Regulation of Cannabis Act), while Sen. Carol Alvarado filed SB 237.

• House version: adults 21+ could possess up to two ounces (including 15 grams of concentrate) and grow 12 plants at home. It carries a 15% cultivator tax plus a 20% consumer tax, with revenue split 50% to schools, 25% to veterans, 15% to drug treatment and 10% to local governments, and no local bans allowed.

• Senate version: allows up to 2.5 ounces, relies on licensing and application fees instead of new excise taxes, and lets counties prohibit cannabis businesses. For investors, those differences shape pricing, profitability and store footprint.

• The politics have shifted, but the Senate is still the obstacle: Democrats flipped the Texas House for the first time in more than 20 years, and Vikki Goodwin will preside over a Senate that Republicans still control 19 to 12. The session begins January 12.