💸 The Tape

Grown Rogue International Inc. (CSE: GRIN) (OTC: GRUSF) reported preliminary, unaudited 2025 financial results showing meaningful progress on its flower-forward strategy despite persistent pricing pressure in legacy markets. The company also provided its first formal guidance and long-term objectives under U.S. GAAP reporting, outlining a disciplined path to scaled growth through 2027 and beyond.

For the full year ended December 31, 2025, Grown Rogue recorded revenue of $32.4 million, a 22% increase from $26.6 million in 2024. Growth was driven primarily by the late-2024 launch in New Jersey, partially offset by the termination of the Vireo consulting agreement in September 2024 and significant wholesale pricing declines in Michigan (down 22%) and Oregon (down 8%).

Adjusted EBITDA rose 42% to $5.4 million, delivering a 16.5% margin compared with $3.8 million and 14.8% in 2024. GAAP net income was $3.2 million, aided by a non-cash fair value gain on derivative liabilities. Cash and cash equivalents ended the year at $11.4 million, up 133% from $4.9 million at the end of 2024.

Fourth-quarter revenue was $8.8 million, with adjusted EBITDA of $1.2 million (13.4% margin) and a GAAP net loss of $2.1 million. All figures are preliminary and unaudited, reflecting the company’s transition from IFRS to U.S. GAAP, including consolidation of New Jersey operations.

New Jersey Momentum and Expansion Plans

New Jersey emerged as the clearest growth driver. The company’s affiliate, ABCO Garden State, achieved full sell-through of packaged, branded products in its first full year. Phase II expansion is underway, with one additional flower room already planted and expected to add approximately 25% to capacity. First harvest from the new room is targeted for May 2026. The remaining three rooms are scheduled to come online incrementally every two to three months through the end of 2026, bringing total flowering canopy to approximately 16,000 square feet and potential monthly production above 1,000 pounds.

CEO Obie Strickler emphasized the strategic importance of the market: “In New Jersey, demand continued to support our thesis, and we are executing the next phase of our expansion… Grown Rogue should have a meaningfully different profile entering 2027, with more revenue and profit expected to come from our newer markets with packaged, branded products.”

Legacy Markets Under Pressure but Improving Efficiency

Oregon and Michigan continued to face intense wholesale pricing headwinds throughout 2025. Despite the challenges, Grown Rogue maintained strong cost discipline. Overall production cost of dry-weight cannabis biomass in its mature indoor facilities remained below $225 per pound, supported by continuous improvements in standard operating procedures and modest infrastructure investments.

In Michigan, benefits from these efficiency efforts are already materializing. Oregon is expected to see similar gains later in 2026. Management views periods of pricing pressure as opportunities to sharpen execution and optimize operations for the long term.

Pipeline of New Market Entries

Grown Rogue is actively building its multi-state footprint. In Minnesota, construction is underway on a new-build cultivation facility in Fridley. Phase I, with approximately 8,000 square feet of flowering canopy, is targeted to come online late in Q3 2026, with revenue expected in Q1 2027.

Subsequent to year-end, the company announced definitive agreements to accelerate entry into Illinois through a turnkey cultivation facility in Dwight. Illinois is expected to begin contributing revenue in Q4 2026 with an initial 5,000 square feet of flowering canopy.

By the end of 2026, Grown Rogue anticipates operating in five states with approximately 58,000 square feet of flowering canopy — a roughly 55% increase from current levels.

Capital Structure and Financial Discipline

During 2025, Grown Rogue closed two tranches under its senior secured credit facility totaling $12.0 million at a blended interest rate of 7.84%. The company ended the year with $11.4 million in cash and remains focused on working capital discipline and funding projects that meet strict return thresholds.

CFO Andrew Marchington noted the transition to GAAP reporting and consolidation of New Jersey operations as key factors in the 2025 results. He emphasized ongoing efforts around cost control and capital allocation.

New Multi-Year Growth Framework and 2026–2027 Guidance

For the first time, management introduced a formal multi-year growth framework and specific financial guidance. Long-term (3–5 year) targets, using 2027 as the base year, include:

• Revenue growth of 25% per year, compounded

• Adjusted EBITDA growth of 35% per year, compounded

• Return on Incremental Invested Capital (ROIIC) greater than 75%

For 2026, the company guided revenue of $32–$35 million and adjusted EBITDA of $6–$8 million. For 2027, guidance calls for revenue of $50–$58 million and adjusted EBITDA of $14–$18 million.

Guidance excludes pre-revenue startup expenses in Illinois and Minnesota (estimated $1.5–$2.0 million each). Consolidated gross margins are expected to exceed 40% in 2026 and 42% in 2027, with corporate overhead increasing less than 10% in 2026 and less than 25% in 2027.

Josh Rosen, Chief Strategy Officer, outlined the disciplined approach: “Our growth plan is focused on disciplined capital allocation and targeted returns… We evaluate investments against mature-market, normalized pricing assumptions; early-cycle pricing upside is not required to meet return targets.”

The strategy emphasizes three pillars: selective new builds in undersupplied markets, lower-capital “fixer-upper” opportunities, and product expansion to increase share of consumer spend while maintaining quality standards.

Outlook and Strategic Positioning

Grown Rogue enters 2026 with a clear roadmap. New Jersey expansion, Illinois entry, and Minnesota development are expected to drive meaningful revenue and profit growth in 2027 and beyond. Legacy markets in Oregon and Michigan will continue to face pressure, but ongoing efficiency gains should help mitigate the impact.

The shift to GAAP reporting and introduction of formal guidance improve transparency for investors. Management’s emphasis on capital-efficient growth, packaged branded products, and normalized pricing assumptions reflects a mature, long-term mindset in an industry still prone to volatility.

With approximately 37,000 square feet of flowering canopy today and a path to 58,000 square feet by year-end 2026, Grown Rogue is positioning itself as a craft-focused, multi-state operator capable of delivering consistent quality at competitive costs. If execution matches the ambition outlined in the new framework, the company could emerge as a more scaled and profitable player heading into 2027.

The preliminary 2025 results and forward guidance suggest Grown Rogue has successfully navigated a challenging year while laying groundwork for accelerated growth. Investors will now watch closely as the company delivers on its expansion plans and reports audited results on April 8, 2026.

📈 Dog Walkers

$AAWH ( ▼ 4.78% ) Taps Social Equity Initiatives

Ascend Wellness Holdings, Inc. (CSE: AAWH.U) (OTCQX: AAWH) has partnered with NuProject to introduce ROOTS — Readying Opportunities for Operational & Trade Sustainability — a new six-month business readiness program aimed at supporting small and social equity cannabis operators and ancillary businesses in Massachusetts and New Jersey.

The program provides practical tools, coaching, and technical assistance to help participants improve financial systems, strengthen leadership practices, and prepare for procurement opportunities with larger operators. Applications are open through Monday, May 11, with the cohort launching in May 2026.

Danielle Drummond, Ascend VP of Social Equity, said: “Sponsoring ROOTS is the continuation of Ascend CO-LAB’s commitment to creating a stronger and more equitable cannabis industry. We are looking to deepen our impact and build on our partnerships. Creating strong relationships between large and small businesses is the way our industry thrives.”

Participants will receive structured training, mentorship, a self-paced curriculum, and expert support in finance and accounting to improve cash flow and overall financial mastery. The program culminates in an opportunity for businesses to present their growth strategies directly to potential buyers and partners within Ascend’s supply chain network.

Jeannette Ward, CEO of NuProject, added: “Securing procurement contracts with large customers is an important growth and stability goal for burgeoning companies… NuProject helps founders land their ‘big fish’ clients, and we are thrilled to have a partnership with Ascend that provides the resources to build up a cohort of founders with the skills and preparation needed to be successfully positioned for growth.”

This initiative builds on Ascend’s longstanding social equity efforts, which have included over 60 expungement clinics nationwide, nearly $2 million in donations to grassroots organizations, and support for more than 150 social equity and Minority Business Enterprise (MBE) businesses. It also complements NuProject’s track record of delivering more than 5,000 hours of coaching and deploying $4.9 million through mission-based lending to historically excluded cannabis entrepreneurs.

ROOTS reflects a growing industry recognition that sustainable growth requires collaboration between large operators and smaller businesses. By focusing on operational readiness and direct pathways to procurement, the program aims to help small operators overcome common barriers to scaling while fostering a more inclusive and resilient cannabis ecosystem.

For Ascend, the partnership aligns with its broader strategy of community investment and collective growth across its footprint in Illinois, Maryland, Massachusetts, Michigan, New Jersey, Ohio, and Pennsylvania. The company produces and distributes its own brands, including Ozone, Simply Herb, High Wired, Honor Roll, Royale, and Effin’, while operating state-of-the-art cultivation facilities.

As the cannabis industry continues to mature and consolidate, programs like ROOTS could play an important role in ensuring smaller operators and social equity participants have the tools and connections needed to thrive alongside larger companies.

🗞️ The News

📺 YouTube

Jushi Earnings and What Washington Is Really Saying | TTB Presented by Flowhub

What we will cover:

✅ A lot to unpack in this one — earnings, refinancing, and what’s actually happening in Washington right now.

In the latest Trade To Black podcast, presented by Flowhub, Shadd Dales and Anthony Varrell are joined by Jim Cacioppo, CEO of Jushi Holdings (CSE: JUSH) (OTCQX: JUSHF), along with Chief Strategy Officer Trent Woloveck.

Jushi put up $262.9 million in full-year revenue, with improving EBITDA and stronger branded product penetration across key markets. At the same time, there are still questions around margin consistency, cash flow, and the path to profitability — all of which get addressed directly.

Then there’s the balance sheet.

The company recently completed a $160 million refinancing, extending maturities and improving liquidity without dilution. In this market, that kind of flexibility matters.

But what stood out most is what came out of Washington.