Trulieve Reports Q2 Revenue of $271 Million, Adjusted EBITDA of $98 Million

Trulieve Cannabis (OTC: TCNNF ) reported second-quarter financial results on Friday. The transcript from the company's second-quarter earnings call has been provided below. This content is powered APIs. For comprehensive financial data and transcripts, visit The full earnings call is available at Summary Trulieve Cannabis reported Q2 2026 revenue of $271 million, with a gross margin of 60% and adjusted EBITDA of $98 million.

The medical-only business reported $222 million in revenue with a 63% gross margin. Strategic initiatives include expansion in Georgia and Texas, leveraging changes in regulations to increase distribution and patient access. The company is also investing in technology to enhance customer engagement through Project Hyper. The company uplisted to the NYSE, which is expected to lower its cost of capital and attract institutional investors.

Trulieve is actively pursuing M&A opportunities, focusing on medical-only markets. Trulieve anticipates Q3 revenue to be comparable to the medical-only revenue of $222 million in Q2, with growth expected in Georgia and Pennsylvania. The company expects to accelerate investment in Texas pending regulatory approvals. Management highlighted the removal of the 280E tax burden due to federal rescheduling, which positively impacts cash flow.

S. Full Transcript Chris, Operator Good morning, everyone, and welcome to the Trulieve Cannabis Corporation Second Quarter 2026 Financial Results Conference Call. My name is Chris, and I will be your conference operator today. As a reminder, this conference call is being recorded.

I would now like to turn the call over to Christine Hersey, Chief Corporate Affairs & Strategy Officer for Trulieve, who will be your moderator for today. You may begin. Christine Hersey, Chief Corporate Affairs & Strategy Officer Thank you. Good morning, and thank you for joining us.

During today's call, Kim Rivers, Chief Executive Officer, and Yann Reese, Chief Financial Officer, will deliver prepared remarks on our financial performance and outlook for Trulieve. Following the prepared remarks, we will open the call to questions. This morning we reported second quarter 2026 results. A copy of our earnings press release and PowerPoint presentation may be found on the Investor Relations section of our website, An archived version of today's conference call will be available on our website later today.

As a reminder, statements made during this call that are not historical fact constitute forward-looking statements, and these statements are subject to risks, uncertainties, and other factors that could cause our actual results to differ materially from our historical results or from our forecast, including the risks and uncertainties described in the Company's filings with the Securities and Exchange Commission, including Item 1A. Risk Factors of the Company's most recent Annual Report on Form 10-K, as well as our periodic quarterly filings.

Although the Company may voluntarily do so from time to time, it undertakes no commitment to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. During the call, management will also discuss certain financial measures that are not calculated in accordance with United States Generally Accepted Accounting Principles, or GAAP. We generally refer to these as non-GAAP financial measures. These measures should not be considered in isolation or as a substitute for Trulieve's financial results prepared in accordance with GAAP.

A reconciliation of these non-GAAP measures to the most directly comparable GAAP measures is available in our earnings press release that is an exhibit to our current report on Form 8-K that we furnished to the SEC today and can be found in the Investor Relations section of our website. Lastly, at times during our prepared remarks or responses to your questions, we may offer metrics to provide greater insight into the dynamics of our business or our financial results. Please be advised that we may or may not continue to provide these additional details in the future. I'll now turn the call over to our CEO, Kim Rivers.

Kim Rivers, Chief Executive Officer Thank you, Christine. Good morning, everyone, and thank you for joining us. Today we are thrilled to report second quarter results for the first time as a company listed on the New York Stock Exchange. S.

Our mission is to expand access to cannabis while serving customers with high quality products and exceptional experiences. 5 million square feet of production capacity when we include Trulieve Cannabis branded adult and medical mixed use dispensaries owned by Harvest. Our branded retail network includes 241 retail locations and over 4 million square feet of production capacity. Last month Trulieve Cannabis was named to Time's America's Best Companies 2026 list, a prestigious recognition awarded to the top 1000 companies, highlighting our commitment to employee growth and career development.

I am so proud of the team and what we have built together since the very beginning. Trulieve Cannabis has led from the front pushing for reform. For the past two years we have actively supported federal reclassification of marijuana. In December, President Trump issued an executive order to support rescheduling, delivering on his campaign promise to address cannabis reform.

In April, Attorney General Todd Blanch rescheduled state licensed medical marijuana to Schedule 3, completing the first meaningful federal reform in over 50 years. In conjunction with state licensed medical marijuana rescheduling, the Treasury Department confirmed that punitive 280E tax no longer applies to state licensed medical marijuana operations beginning in 2026. The removal of this tax burden provided an immediate boost to our reported net income and cash flow. At the same time, AG Blanch resumed the broader rescheduling process for marijuana.

Hearings concluded last month and we expect a final order to be issued this year. As part of the final order to reschedule state licensed medical marijuana, a new process was created for operators to register with the DEA. Trulieve Cannabis registered all of its medical only marijuana dispensaries and production facilities with the DEA, complying with the six month grandfathering provision in the final order. To date, the DEA has completed inspections at 100% of our dispensaries across Florida, Pennsylvania and West Virginia.

We anticipate facility approvals in the coming weeks in order to facilitate listing on the New York Stock Exchange. Trulieve Cannabis segregated the medical only state licensed DEA registered business from the mixed use states that have both medical and adult use operations. State operations serving medical and adult use customers are part of Harvest. Following precedent and as part of the deconsolidation, 10% of the mixed use business was sold to an independent third party investor along with operational control.

Trulieve Cannabis retains 90% of the economic interest in Harvest and will have the option to reconsolidate the Harvest business pending broader rescheduling and NYSE permitting inclusion. Since listing on June 10, we have conducted non deal roadshows to meet investors in Chicago, Denver, New York, Montreal and Toronto. We introduced Trulieve Cannabis to a host of institutional investors who are new to the cannabis space. Over time we expect to realize greater stability in our shareholder base, higher liquidity, broader analyst coverage and index inclusion for our stock.

S. cannabis company to ring the bell. S. and removal of the punitive 280E tax burden will lower our cost of capital.

While the shift in federal policy is historic, I'm equally excited about three significant near term growth opportunities. First, in Georgia, program changes have created an unlock for increased distribution that we are executing on now. Second, in Texas, where we are in the process of converting our conditional license to final, we have the opportunity to serve the biggest medical market since Florida. And third, across our markets we have a targeted strategy to acquire new customers currently served by the intoxicating hemp market as the federal ban takes effect.

Overall, Trulieve Cannabis is ready to further solidify our leadership position during this incredibly exciting time for the industry. Our core business continues to outperform, generating industry leading margins and strong cash flow, providing the flexibility to make strategic investments and growth initiatives. Turning now to our second quarter results, please note reported results for this quarter include the combined business until the deconsolidation transaction on June 3 and then the medical only business for the remainder of June. Second quarter revenue of 271 million was in line with guidance for the medical only business.

Revenue increased 4% sequentially to 222 million. Second quarter gross margin of 60% reflects operational efficiencies, low production costs and our disciplined approach to promotional activity. For the medical only business, second quarter gross margin was 63%. Adjusted EBITDA of $98 million, or 36% margin, was driven by expense control in our core business.

During the quarter we generated $53 million in operating cash flow, which contributed to our quarter end cash balance of $325 million. Second Quarter Retail Results were in line with positive seasonal trends, including the 4/20 holiday. In medical only markets, traffic increased 6%, pressured by a slight sequential decline in average basket. Units were up 8%, underscoring strong demand for cannabis.

In Florida, we sold 56% more flower per store than the state average across 169 stores, totaling 680,000 ounces. 5 billion milligrams of oil, more than two times the next highest competitor. Patient growth in Florida, Georgia and Pennsylvania has accelerated recently, further highlighting cannabis demand. Customer preferences for value, mid and premium tier units sold remain consistent from the first quarter.

During the third quarter, we expect growth in Georgia and Pennsylvania to offset typical summer pressure. In Florida, we expect momentum to fuel continued growth through year end. Our investment in Harvest performed well in the second quarter with revenue growth and margin expansion compared to the first quarter, driven largely by growth in Ohio. Turning now to our strategic objectives for 2026, we have made meaningful progress in these four areas: 1) expanding access to cannabis, 2) investing in growth initiatives, 3) growing our loyal customer base and 4) elevating our branded product portfolio.

I'll begin with expanding access to cannabis, which is a critical part of our mission. State licensed medical marijuana has been reclassified to Schedule 3, representing a major win for patients, caregivers and physicians. Acknowledging the medical value of cannabis reduces stigma, eases barriers to research and sets the stage for further reform. We remain supportive of broader rescheduling and expect a final order this year.

We expect momentum to continue with Safe Banking, updated FinCEN guidance and Treasury guidance on 280E tax treatment, including potential retroactive application for state licensed medical marijuana operators. These measures can expand access to banking and service providers, reducing friction and cost in day to day operations. While cannabis reform continues to come to fruition, we are ramping investments in meaningful growth opportunities in both Georgia and Texas.

Following recent program changes in Georgia and federal reclassification of state licensed medical marijuana, Trulieve Cannabis has significant growth potential in both the independent pharmacy channel and our own dispensaries. Independent pharmacies in Georgia are eligible to register with the state and with the DEA to dispense approved medical marijuana products to registered patients. In June, we began supplying licensed pharmacies with medical marijuana products and are now shipping to almost 20 pharmacies.

We believe this market opportunity will expand over time as more than 125 independent pharmacies have previously expressed interest in carrying medical marijuana products. Our team is meeting with pharmacy owners across Georgia to discuss medical cannabis and share information on how to apply for state and DEA licenses. Alongside pharmacy distribution, the Georgia program has six licensed operators for cultivation and retail. As one of only two tier one license holders, Trulieve Cannabis opened the first medical dispensary in April 2023.

At that time, the program was limited to low THC products for patients with severe and end stage qualifying conditions. In May, the governor signed a new law that expands the program. As of July 1, Georgia's medical marijuana program removes the THC cap, includes new qualifying conditions such as HIV, IBS and lupus, and allows for new products such as vapes and inhalable flower. In the first two weeks of July, traffic at our dispensaries tripled due to high demand.

We sold out of flower. However, we expect to have flower back in stock in the coming weeks. Cultivation capacity is ongoing and will ramp in stages throughout the end of the year and into 2027. While flower production is ramping, we have a variety of new concentrate and vape products rolling out in August and September.

Today we have six open dispensaries and are on track to open our seventh store in Dunwoody this fall. The program allows us to open additional dispensaries as the patient count increases. Patient enrollment in Georgia is accelerating with growth up 38% this year and surpassed 45,000 this week, triggering eligibility for an eighth dispensary, which could open as soon as early 2027. While Georgia presents a meaningful growth opportunity, Texas has tremendous near term growth potential.

S. Historically, the Texas Compassionate Use Program, or TCUP medical marijuana program, was limited in scope and size. The program had only three licensed operators and strict rules that made it very difficult for any of the three operators to achieve scale, such as requiring all products to be removed from each dispensary and warehoused every night. Last September, a new law passed that revamped the program, making several critical improvements.

Qualifying conditions were expanded to include chronic pain, Crohn's disease, traumatic brain injuries and terminal illnesses. Initial patient consultations with physicians can be conducted via telehealth, providing a convenient way for patients to speak with a physician to determine which products and dosing may be appropriate. In addition, rules were updated to allow products to remain in dispensaries without warehousing overnight. Permissible products were expanded to include new form factors such as vapes, lotions and patches.

Finally, the number of operators is increasing from 3 to 15 with the award of 12 new licenses. In December, Trulieve Cannabis was awarded a conditional license for the TCUP medical marijuana program. We are working to convert the conditional award to a final license. The TCUP program allows each license holder to build vertically integrated operations with unlimited production capacity on a continuous site to support unlimited retail as long as the operator has one retail location in each of the 11 regions across Texas.

Construction of initial production capacity is complete and we have a robust retail pipeline of stores covering all regions. We plan to scale our production capacity and retail network modularly as the patient count increases over time. 5% of the population in Texas. 5 times the current market size.

The setup in Texas strongly favors Trulieve Cannabis's approach to market penetration through scaled operations to sell branded products through branded retail. Our proven track record of developing vertically integrated medical markets such as Florida, combined with our strong balance sheet, provide us with meaningful competitive advantages in Texas. We believe the Texas market can grow more quickly than Florida did, and we look forward to contributing to the success of the TCUP program.

Alongside expansion in Georgia and Texas, we are investing in our retail network with both new locations and store refresher remodels to support patient growth while maintaining brand standards. Year to date we have opened eight new dispensaries in Florida and refreshed or remodeled 24 locations across our markets. On top of investments in organic growth, we are actively evaluating acquisition opportunities in new and existing markets ranging from tuck in assets to large single and multi state operations. We evaluate potential targets using stringent criteria including price, strategic fit, quality of assets and market framework.

In addition, we are investing in technology.