Cannabis consumer products firm Green Thumb's Q3 revenue slightly beats estimates

Overview

• Green Thumb Q3 revenue rises 1.6% yr/yr, slightly beating analyst expectations

• Net income for Q3 boosted by one-time gain on asset sales

• Company authorizes $50 mln share repurchase program through September 2026

Outlook

• Company expects Q4 2025 revenue to be flat to up single digits

• Green Thumb confident in expanding market share despite challenges

• Company sees potential for adult-use market in Virginia next year

Result Drivers

• MINNESOTA EXPANSION - Commenced adult-use cannabis sales at seven of eight RISE Dispensaries in Minnesota, boosting revenue

• PRICE COMPRESSION - Revenue growth impacted by price compression in key markets, including Illinois and Pennsylvania

• BRAND EXPANSION - Focus on brand-led market share expansion led to gains in Illinois, Pennsylvania, New Jersey, and Maryland

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the drug retailers peer group is "buy"

• Wall Street's median 12-month price target for Green Thumb Industries Inc is C$18.00, about 47.2% above its November 4 closing price of C$9.50

• The stock recently traded at 42 times the next 12-month earnings vs. a P/E of 28 three months ago

Press Release: ID:nGNX7NKzQf

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