BOCA RATON, Fla. — Jushi Holdings Inc., a vertically integrated, multi-state cannabis operator, reported its financial results for the first quarter ended March 31, 2025 (“Q1 2025”). All financial information is unaudited and provided in U.S. dollars unless otherwise indicated and is prepared under U.S. Generally Accepted Accounting Principles (“GAAP”).
First Quarter 2025 Financial Highlights
- Total revenue of $63.8 million
- Gross profit and gross profit margin of $25.8 million and 40.4%, respectively
- Net loss of $17.0 million
- Adjusted EBITDA and Adjusted EBITDA margin of $9.8 million and 15.4%, respectively
- Cash, cash equivalents, and restricted cash of $27.9 million as of quarter end
- Net cash flows provided by operations of $7.5 million
First Quarter 2025 Company Highlights
Jushi-branded product sales grew to 56% of total retail revenue in Q1 2025 across the Company’s five vertical markets.
Introduced 391 new unique SKUs to the product portfolio, expanding offerings throughout the Company’s vertical footprint, including flower, pre-rolls, concentrates, and edibles. This also included the successful launch of Jushi’s newest high-demand premium flower brand, Flower Foundry, in Virginia.
Continued execution of the Company’s 7 and 7 retail-first expansion strategy, with the first phase expected to be completed by the end of the third quarter of 2025 (“Q3 2025”) with a new store opening in Parma, Ohio. The Parma, OH dispensary will be operated under a management services agreement until the Company’s change of ownership application receives applicable regulatory approvals. The second phase is also underway, with two new locations planned in New Jersey and an additional Ohio location expected to open by year-end, subject to regulatory approvals.
Expanded Ohio retail presence with the opening of a new Beyond Hello location in Warren, which is currently operated by the Company under a management services agreement, and completed the previously announced acquisitions of the Company’s dispensaries in Oxford and Toledo, which were previously operating under management services agreements.
Relocated and opened a dispensary in Linwood, Pennsylvania, marking Jushi’s 18th Beyond Hello dispensary in the state.
Enhanced cash position through the factoring of Employee Retention Credit (ERC) refund claims, resulting in approximately $5.1 million in net cash proceeds. The Company also retained the right to a share of any interest earned on those ERC claims.
Received approximately $2.2 million of refunds from non-factored claims along with $0.5 million of related interest.
Issued 12% second lien notes totaling approximately US$5.1 million, maturing in December 2026, with net cash proceeds of US$4.6 million.
Post Quarter-End Developments
Opened a Beyond Hello dispensary in Mansfield, Ohio, on April 19, 2025, marking the Company’s fifth location in the state, which is currently operating by the Company under a management services agreement.
In April 2025, an additional $0.8 million of factored ERC claims were paid and the Company received $0.1 million of interest on these claims.
Management Commentary
“Over the first quarter, we focused on strengthening our operations within our key vertical markets, while also taking strategic actions to enhance our capital structure and support ongoing expansion initiatives,” said Jim Cacioppo, Chief Executive Officer, Chairman, and Founder of Jushi. “Our ongoing cost optimization efforts, combined with improved liquidity from strategic transactions during the quarter – such as the factoring of certain ERC claims and issuance of second lien notes – have fortified our balance sheet and provided greater strategic agility as we scale within the rapidly evolving industry backdrop. The sequential gains in Adjusted EBITDA and gross margin from the fourth quarter of 2024 (“Q4 2024”) underscore the progress of our initiatives to improve efficiencies across our grower-processor footprint and maintain consistent product output, helping to offset the impact from price compression and support both profitability and topline growth.”
Mr. Cacioppo continued, “Our 7 and 7 retail-first expansion strategy continues to make strong headway, with the first phase nearing completion as we anticipate the opening of our seventh Beyond Hello store from the initial pipeline in Parma, Ohio, by the end of Q3 2025. Phase two is also well underway, with two additional stores expected to open in New Jersey and one in Ohio by year end. Since launching the expansion program in Q4 2024, we anticipate opening a total of eight to ten new dispensaries by the end of 2025 – just one year from the program’s inception. As part of our strategic approach to retail expansion, we are targeting growth in key markets such as Illinois, New Jersey and Ohio, while continuing to evaluate additional high-opportunity regions across the country. With the support of our strong grower-processor footprint and evolving product portfolio, we are well-positioned to serve our growing network of Beyond Hello dispensaries and to deliver long-term value and sustained growth for our customers, patients, and shareholders.”
Financial Results for the First Quarter Ended March 31, 2025
Retail revenue for Q1 2025 decreased by $0.5 million as compared to Q1 2024. While overall units sold increased 6.1%, average sales price declined overall. Retail revenue decreased in all states except Virginia and Ohio due to increased competition and market price compression. In Virginia, retail revenue for Q1 2025 increased $1.4 million. This growth was driven by strong overall performance across all locations, with newer stores continuing to ramp up. In Ohio, retail revenue in Q1 2025 increased $2.5 million as compared to Q1 2024 due to the transition to adult-use during Q3 2024 and the addition of two co-located medical and adult-use dispensaries that were consolidated beginning in Q4 2024 as a result of the Company entering into management services agreements with two operating dispensaries in Oxford and Toledo, Ohio; these dispensaries were acquired by us in the current quarter. Furthermore, we consolidated a third dispensary in Ohio which opened in February 2025 as a result of our gaining control through the management services agreement previously entered into. Including this new Ohio store, we ended Q1 2025 with 40 operating dispensaries in seven states, as compared to 35 in seven states at the end of Q1 2024.
Wholesale revenue for Q1 2025 decreased $1.1 million as compared to Q1 2024. The decrease is primarily attributable to a decline of $1.3 million in Massachusetts due to lower bulk sales, as well as limited availability of products available to third parties through our wholesale channel as we prioritized supplying our retail stores.
Gross profit and gross profit margin decreased to $25.8 million and 40.4%, respectively, for Q1 2025 as compared to $32.3 million and 49.4%, respectively, for Q1 2024. The decrease in gross profit and gross profit margin was driven by competitive pricing pressure requiring higher discounting in our retail channel which resulted in lower sales dollars. In addition, higher production costs per unit from prior periods are being reflected in the current quarter’s cost of sales as products produced in prior quarters turn.
Jushi-branded product sales as a percentage of total retail revenue were 56% in Q1 2025 across the Company’s five vertical markets compared to 54% in Q1 2024.
Operating expenses for Q1 2025 were $27.6 million as compared to $28.2 million in Q1 2024. The quarter-over-quarter decrease was due primarily to lower share-based compensation expense which reflects higher forfeiture as well as lower value of share-based compensation granted. The decrease was partially offset by higher depreciation and amortization expense primarily due to the amortization of our business licenses which commenced during the second quarter of 2024.
Other expense, net for Q1 2025 included interest expense of $10.0 million, which was partially offset by other, net of $3.2 million and fair value gain on derivatives of $0.6 million. Other, net for Q1 2025 includes $2.8 million in employee retention refund claims, including interest received, from the IRS.
Net loss for Q1 2025 was $17.0 million compared to $18.4 million for Q1 2024.
Adjusted EBITDA in Q1 2025 was $9.8 million compared to $13.3 million in Q1 2024.
Balance Sheet and Liquidity
As of March 31, 2025, the Company had approximately $27.9 million of cash, cash equivalents and restricted cash. For Q1 2025, the Company paid approximately $4.0 million in capital expenditures. As of March 31, 2025, the Company had approximately $4.5 million and $208.2 million of short-term and long-term total gross debt, respectively, excluding leases and property, plant, and equipment financing obligations. Excluding the $21.5 million notes payable to Sammartino, as we currently have no obligation to repay these notes, the total gross principal amount of debt subject to scheduled repayments was $191.2 million.
As of May 2, 2025, the Company’s issued and outstanding shares were 196,696,597 and its fully diluted shares outstanding were 301,139,845.
About Jushi Holdings Inc.
We are a vertically integrated cannabis company led by an industry-leading management team. Jushi is focused on building a multi-state portfolio of branded cannabis assets through opportunistic acquisitions, distressed workouts, and competitive applications. Jushi strives to maximize shareholder value while delivering high-quality products across all levels of the cannabis ecosystem.
