💸 The Tape

In the fast-evolving world of hemp-derived THC, where regulatory headwinds can feel like a bad trip and consumer demand keeps climbing anyway, RYTHM, Inc. (Nasdaq: RYM) just delivered a fourth-quarter performance that suggests the company is finally hitting its stride.

The newly independent, publicly traded lifestyle and consumer packaged goods player—carved out from Green Thumb Industries with a fresh name, ticker, and mission—reported revenue from continuing operations of $10.7 million for the quarter ended December 31, 2025. That’s a whopping 164% jump from the prior quarter’s $4.0 million, driven largely by the ramp-up of licensing revenue from its expanded brand portfolio.

Gross profit from continuing operations surged to $8.0 million, delivering an eye-popping 75% margin—more than double the 34% seen in the previous quarter. The improvement reflects the high-margin nature of licensing deals, particularly the $7.0 million recognized in Q4 from brands now under Green Thumb’s cannabis operations. For the full year, RYTHM generated $7.8 million in total licensing fees, a direct result of the strategic acquisition of iconic intellectual property including RYTHM, Dogwalkers, incredibles, Beboe, and others.

Chairman and Interim CEO Ben Kovler didn’t sugarcoat the year’s significance: “2025 was a transformational year for RYTHM, Inc., marked by a new name, a new ticker, and a new strategic direction as we expanded our role in the THC category, with RYTHM, Dogwalkers, and Señorita leading the way.”

The non-cash $8.5 million impairment charge contributed to an operating loss of $12.9 million for the quarter, but Kovler framed it as part of the clean-up that comes with spinning out and repositioning. Cash on hand stood at a healthy $32.2 million at year-end, providing runway as the company scales. Shares outstanding were approximately 2.1 million, with warrants convertible into 10.9 million shares and another 3.0 million issuable upon conversion of convertible notes (excluding interest).

What truly sets the tone for 2026, however, is RYTHM’s aggressive push into mainstream retail and experiential channels—places where consumers already shop, gather, and unwind. The company has built a beverage retail footprint exceeding 6,000 locations across 18 states, a remarkable achievement for a hemp-derived THC player still navigating federal gray areas.

The crown jewel? A historic partnership with Chicago’s United Center, home to the Bulls and Blackhawks. Señorita THC Margaritas and RYTHM Beverages became the first THC beverages ever available at a major U.S. arena, marking a multi-year deal that puts cannabis-adjacent products squarely in front of sports fans and concertgoers. Kovler called it “a powerful example of real progress with a world-class partner who recognizes evolving consumer demand.”

Equally impressive was the largest U.S. convenience store rollout of hemp-derived THC beverages to date: Señorita THC Margaritas landed in more than 800 Circle K locations nationwide. These moves aren’t just distribution wins—they’re cultural statements. In a market where THC consumption continues to rise while alcohol faces headwinds (“Americans just say no to alcohol,” as Kovler put it), RYTHM is positioning its brands where people already are.

The strategy is clear: own the most recognizable names in the space, license them into regulated cannabis channels for steady high-margin revenue, and simultaneously build direct-to-consumer and retail pathways for hemp-derived products that sidestep many federal restrictions. It’s a dual-track approach that hedges against regulatory uncertainty while capitalizing on the growing mainstream acceptance of THC.

Kovler emphasized the consumer-first philosophy: “THC has faced persistent structural and regulatory headwinds, but consumer demand continues to rise. We believe consumers deserve access to safe, high-quality THC products where they already live, shop, and gather.”

That philosophy is paying dividends. The licensing revenue alone—$7.0 million in Q4 from the Green Thumb partnership—provided the bulk of the quarter’s gross profit and helped drive the 75% margin. Those fees began November 1, so the fourth quarter captured just two months of contribution; 2026 should see a full-year run rate.

The brand portfolio itself is a who’s-who of trusted names. RYTHM and Dogwalkers have long been category leaders in flower and pre-rolls. Incredibles dominates the chocolate edibles space. Beboe brings premium, lifestyle appeal. By acquiring the intellectual property and licensing it back into cannabis while simultaneously launching hemp-derived versions (like Señorita THC Margaritas and RYTHM Beverages), RYTHM has created a flywheel: brand equity funds growth, licensing generates cash, and retail expansion builds direct consumer relationships.

Looking ahead, the company sees significant runway. Federal policy may lag, but state-level momentum and shifting consumer preferences create tailwinds. The hemp-derived THC beverage category, in particular, is exploding—offering convenient, low-dose options that appeal to both cannabis-curious newcomers and experienced users seeking alternatives to alcohol.

RYTHM’s balance sheet remains solid with $32.2 million in cash, providing flexibility for further brand investments, retail expansion, or opportunistic acquisitions. The capital structure, while complex with warrants and convertibles, reflects the company’s growth-stage positioning.

For investors, the story is compelling: a lean, brand-centric operator with proven licensing revenue, mainstream retail traction, and experiential firsts like the United Center deal. In an industry often defined by regulatory whiplash, RYTHM is betting that owning the brands consumers already love—combined with smart, non-plant-touching distribution—will deliver durable value regardless of how Washington ultimately moves.

As Kovler noted, “Even as federal policy continues to lag consumer reality, we remain focused on providing consumers with iconic brands they trust.” With Q4 revenue more than doubling sequentially, gross margins expanding dramatically, and landmark retail placements secured, that focus appears to be translating into tangible momentum.

The former Green Thumb spin-off has officially stepped into the spotlight. And if the first quarter of 2026 builds on this foundation, RYTHM could be pouring itself a much larger share of the THC beverage boom.

📈 Dog Walkers

$VEXTF ( ▲ 2.1% ) Levels Up Ohio

Vext Science, Inc. (CSE: VEXT) (OTCQX: VEXTF) just earned another golden ticket in the Buckeye State.

The vertically integrated operator announced today that the Ohio Division of Cannabis Control has granted a provisional dual-use license for a new dispensary on Columbus’s west side, near the I-270 and Roberts Road interchange. This marks Vext’s seventh Ohio location and second in the state’s largest cannabis market, with operations slated for Q4 2026 pending final approvals.

The high-visibility site adjacent to Hilliard serves a growing residential area with limited nearby competition. Construction on a new standalone facility complete with drive-thru begins this month at an expected cost of $3.3 million, including land. The license confirms full compliance with zoning and setback rules for both medical and adult-use sales.

“Securing our seventh Ohio dispensary license is another important step in our disciplined retail expansion,” said CEO Eric Offenberger. “Columbus is the state’s largest cannabis market, and this high-visibility location gives us access to a growing residential area with limited nearby competition. With five consolidated dispensaries currently operating and our sixth in Fairfield expected online in Q2 2026—which has the potential to become one of our strongest stores—we’re building from a position of strength.”

Vext already operates a Tier 1 cultivation facility (25,000 sq ft in Jackson, expandable to 50,000) and manufacturing plant, plus six dispensaries (five live, one under construction). Once the final approved location comes online, the company will hit Ohio’s eight-store cap, maximizing leverage across its vertically integrated platform.

In a market where scale equals margin, Vext just added another gear. With construction underway and a clear runway to the cap, the company is positioning itself for stronger cash flow and operating efficiency in 2027 and beyond.

$HITI ( ▼ 0.79% ) Updates Board

High Tide Inc. (Nasdaq: HITI) (TSXV: HITI) just executed a clean, deliberate board refresh that signals the company is ready for its next growth phase.

Effective March 2, 2026, Nitin Kaushal (director since 2018 and former Audit Committee Chair) and Andrea Elliott (director since 2021 and former Compensation Committee Chair) stepped down after years of valuable service. CEO Raj Grover personally thanked both for their contributions during a period of rapid expansion.

Stepping in are two new directors with exactly the expertise a dual-listed, international cannabis retailer needs right now:

Kathleen Skerrett, securities law partner at Gardiner Roberts LLP, brings deep TSX Venture, CSE, and NASDAQ governance and capital markets experience — perfect for a company with cross-border listing complexity.

Menashe Kestenbaum, serial tech entrepreneur (Ex-CEO of Enthusiast Gaming, which reached $1.4B market cap), current CEO of mental health disruptor Glimmer, and LeverageVC partner, adds proven experience scaling public tech platforms across multiple exchanges and evaluating AI opportunities.

The company also strengthened its advisory board with David Wallach (commercial real estate powerhouse, CCIM, $500M+ in transactions) and Filip Ernest (25+ years in digital transformation, e-commerce, and AI integration).

Grover explained the rationale perfectly: “Our needs as a company are evolving. We are now a dual-listed, international platform operating at significant scale, and our board and advisory composition must evolve to match the complexity and ambition of what lies ahead.”

To align incentives, the company granted 123,558 RSUs and 25,000 stock options at $3.43 strike.

In short: High Tide just upgraded its governance bench for the global stage. Smart move.

🗞️ The News

📺 YouTube

Cannabis Banking Grows As Reform Looms | TTB Powered by Flowhub

What we will cover:

✅ In the latest episode of Trade To Black presented by Flowhub, host Shadd Dales and Anthony Varrell sit down with the CEO of Safe Harbor Financial (NASDAQ: SHFS) to break down the surge of cannabis banking in emerging markets over the past year.

Safe Harbor reported a 29% year-over-year increase in average deposit balances across emerging U.S. markets. Those markets now account for 31% of total deposits. The growth came from more than 100 new customer accounts and expanding operators in states like New York, Ohio, Delaware, Minnesota and Florida.

In the second segment, the conversation switches to the Supreme Court, where justices appeared skeptical of the federal government’s defense of banning marijuana users from owning firearms — especially as cannabis rescheduling potentially shifts to Schedule III.

Plus, MariMed Inc. (CSE: MRMD) (OTCQX: MRMD) restructured its balance sheet by extending maturities by more than four years,