Green Thumb Bets on the Next Domino: Rescheduling, RYTHM Consolidation, and the Rise of THC Beverages
Q2 revenue up 5% to $307M, but margins pressured by licensing fees and SG&A investments; management positions for federal rescheduling and a potential U.S. uplisting.
GTII.CN · Earnings Call · 2026-08-04
Green Thumb's Q2 2026 results reflect a company playing the long game. Revenue rose 5% year-over-year to $307 million, normalized EBITDA was $84 million (27.5% margin), and operating cash flow came in at $29 million. The balance sheet remains fortress-like with $284 million in cash—over $1 per share—even as the company buys back stock aggressively.
But the headline numbers mask the strategic positioning. The gross margin declined to 45% from 50%, driven by $17.5 million in brand licensing fees (a fixed-fee structure that will persist). SG&A rose due to deliberate compensation investments. As CFO Matt Faulkner put it: “We expect third quarter sequential revenue to be flat due to the pricing environment.” — Mathew Faulkner, Chief Financial Officer · 2026-08-04 That transparency about ongoing price compression is a recurring theme.
The Hemp Ban Catalyst
The most intriguing development is the federal hemp loophole closure scheduled for November 12. Management believes this will shift consumers into the regulated market, citing Ohio as a preview. CEO Ben Kovler drew a sharp distinction in the Q&A:
a 5- and 10-milligram ready-to-drink beverage is different from a 1,000-milligram gummy... The hemp product and the hemp game is unregulated product masquerading as marijuana sold at the gas station.
This is why Green Thumb remains bullish on THC beverages, which are popping up at Circle K and Total Wine—a category the company believes is distinct from intoxicating hemp. The hemp ban is expected to drive consumers into regulated markets, and the company has the brand strength and retail footprint to capture that shift.
RYTHM and the Path to a U.S. Listing
Ben Kovler opened the call with the big picture: “Medical cannabis is now on Schedule III of the Controlled Substances Act. The first domino has fallen.” — Benjamin Kovler, Founder and CEO · 2026-08-04 The company is preparing for a potential U.S. uplisting, having registered state-licensed medical operations with the DEA and begun site inspections. “We anticipate listing the business in full, not in part, and we have open dialogues with both major exchanges.” — Benjamin Kovler, Founder and CEO · 2026-08-04 This echoes prior calls; in 2024, Kovler said, “we view Green Thumb as a listing on the U.S. exchange here eventually.” — Benjamin Kovler, Founder and CEO · 2024-08-05 Separately, the pending consolidation of RYTHM into the financials (effective October 10) will simplify reporting, though management insists no economics change. As Matt Faulkner explained, “Green Thumb will then control RYTHM, forcing consolidation of RYTHM into GTI's financials.” — Mathew Faulkner, Chief Financial Officer · 2026-08-04 The move also positions U.S. exchange listing readiness.
Capital Returns and the Long Game
Green Thumb continues to allocate capital opportunistically, buying back roughly 8 million shares at an average of ~$6 during the quarter, and 29.5 million total since Q4 2023—roughly 13% of shares outstanding. On M&A, Kovler said: “We'd rather find a great M&A deal than buy a lot of our stock. It depends how cheap the stock is, but buying and doing an M&A can get us scaled, can get growth and can be better for shareholders in the future.” — Benjamin Kovler, Founder and CEO · 2026-08-04 This echoes his prior stance of playing offense—"we've got a lot of capital to play offense" (from the 2024 call, “we've got a lot of capital to play offense” — Ben Kovler, Founder and CEO · 2024-11-07). The company is also evaluating further investment in Virginia and Texas, both near-term growth catalysts.
Throughout, the emphasis is on positioning for a regulatory transition. As Kovler closed: “Buckle up. We think the next six months could potentially be the most significant in the cannabis landscape in the last 12 years we've been running the business.” — Benjamin Kovler, Founder and CEO · 2026-08-04 With a cash-rich balance sheet, a growing CPG presence, and optionality on rescheduling, Green Thumb is betting that the next domino falls its way.