Trulieve Q2 2026 earnings: Harvest charge drives a $406 million GAAP loss

Trulieve (NYSE: TRLV) reported Q2 2026 revenue of $271.0 million, down 10% from $302.1 million, while diluted EPS from continuing operations fell to a loss of $2.10 from a loss of $0.07. A Harvest-related accounting impact drove a $406.0 million GAAP net loss attributable to common shareholders, although adjusted net income was $20.4 million and operating cash flow remained positive at $53.1 million. The quarter ended June 30, 2026 and included Harvest through its June 3 deconsolidation, followed by only Trulieve medical operations for the rest of June.

Core earnings data

Revenue and gross profit both declined by double-digit percentages, with gross margin slipping one percentage point to 60%. Adjusted net income turned positive, but adjusted EBITDA decreased 11%, showing that the improvement in adjusted earnings did not reflect underlying revenue growth.

Dollar amounts are in millions except per-share figures.

Adjusted net income, adjusted EBITDA and free cash flow are non-GAAP measures. Trulieve defines free cash flow as operating cash flow less capital expenditures; its cash-flow statement includes continuing and discontinued operations.

Retail remained dominant as the operating scope changed

Retail sales accounted for 94% of quarterly revenue. Trulieve opened four Florida dispensaries during the quarter and began shipping medical cannabis products to licensed independent pharmacies in Georgia, but the company did not provide state- or product-level revenue figures that would quantify their contributions.

The June 3 deconsolidation materially changed the reporting perimeter. Q2 included both Trulieve and Harvest operations until that date and only Trulieve medical operations afterward, limiting direct comparisons with periods that included Harvest for the full quarter. Following an additional post-quarter Florida opening, the company reported operating 207 dispensaries and 3.5 million square feet of cultivation and processing capacity as of the earnings release.

Harvest deconsolidation drove the GAAP loss while cash generation remained positive

GAAP operating expenses rose to $532.8 million from $130.3 million, primarily because of a $403.3 million loss on the Harvest deconsolidation. Trulieve also recorded a $3.3 million equity-method loss from Harvest, bringing the combined impact to approximately $407 million. These items explain most of the gap between the $406.0 million GAAP net loss and $20.4 million of adjusted net income.

The deconsolidation charge was non-cash and was added back in the operating cash-flow reconciliation. That allowed Trulieve to generate $53.1 million in quarterly operating cash flow despite the reported net loss. However, the transaction still affected liquidity through $58.4 million of cash disposed in the deconsolidation, contributing to a $74.9 million investing cash outflow alongside $21.0 million of capital expenditures.

Selling, general and administrative expense was nearly unchanged at $101.8 million versus $101.1 million, even as revenue declined. As a percentage of revenue, SG&A therefore increased to approximately 37.6% from 33.5%, helping explain why adjusted EBITDA fell despite positive adjusted net income.

Quarter-end cash was $325.4 million, down $27.5 million during Q2 but up $69.9 million from December 31, 2025. For the first half of 2026—not the second quarter alone—operating cash flow was $108.8 million and free cash flow was $74.4 million. Trulieve also announced a repurchase authorization for up to the lesser of $50 million or 8,495,038 subordinate voting shares, without disclosing completed repurchases in the earnings release.

Management perspective

CEO Kim Rivers emphasized federal cannabis rescheduling and state medical-program expansion as future growth drivers. Trulieve filed applications to register its state-licensed medical marijuana operations with the Drug Enforcement Administration and pointed to potential expansion in Georgia and Texas, while arguing that its scale and branded products position it to participate in those developments.

Recent insider transactions

The supplied six-month insider summary shows purchases of 1,583,091 shares across 16 transactions and sales of 1,699,007 shares across three transactions, resulting in net sales of 115,916 shares, or 4.30% of reported insider holdings. Separately, the latest detailed records with usable terms show seven plan-related dispositions by Kimberly A. Rivers, with reported values totaling approximately $14.69 million; all were classified as direct transactions.

Two March 17 records were excluded because they lacked transaction details. A March 3 conversion entry was also excluded from interpretation because the supplied price and value appeared internally inconsistent. The reported dispositions do not by themselves establish the insider’s view of Trulieve’s prospects.

Risks investors need to watch

• Reduced comparability: Q2 included Harvest for only part of the quarter, so historical revenue and expense comparisons do not represent a consistent operating scope.
• Underlying operating pressure: Revenue, gross profit and adjusted EBITDA declined, while SG&A remained nearly flat. Continued sales weakness could place additional pressure on adjusted margins.
• Lower cash generation: Quarterly operating cash flow fell about 38% and free cash flow declined about 54%, while the deconsolidation produced a significant investing cash outflow.
• Tax exposure: Uncertain tax-position liabilities totaled $598.2 million at June 30, 2026, compared with quarter-end cash of $325.4 million.
• Dependence on policy and state expansion: Management’s growth case includes cannabis rescheduling and program expansion in Georgia and Texas, making execution and regulatory timing important variables.

Summary

Trulieve’s Q2 2026 results were dominated by the Harvest deconsolidation, which created a large GAAP loss without eliminating positive operating cash flow. At the same time, the 10% revenue decline, lower adjusted EBITDA and relatively unchanged SG&A indicate operating pressure beyond the accounting charge. The main issues to monitor are performance under the post-Harvest reporting scope, stabilization of adjusted margins and cash flow, and progress on the regulatory and state-expansion opportunities highlighted by management.