Jushi Holdings Inc ((TSE:JUSH)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Jushi Holdings Inc. revealed a mixed sentiment among stakeholders. The company celebrated notable achievements in revenue growth and strategic expansions, yet faced challenges in wholesale revenue and cash flow. Improvements in net losses and gross profit margin were highlighted, though competitive pressures impacted year-over-year comparisons.
Top Line Growth
Jushi Holdings reported a revenue of $65 million for Q2 2025, marking an increase from $63.8 million last quarter and $64.6 million in Q2 2024. This growth was primarily driven by a $2.6 million sequential increase and a $2.4 million year-over-year rise in retail revenue.
Gross Profit Improvement
The company achieved a gross profit of $28.9 million, which accounted for 44% of revenue in Q2 2025. This is an improvement from the previous quarter’s gross profit of $25.8 million, or 40% of revenue, indicating early signs of margin enhancement.
Net Loss Reduction
Jushi Holdings successfully reduced its net loss to $12.3 million in Q2 2025, down from $17 million in the previous quarter. This sequential improvement reflects the company’s efforts to manage its financial performance effectively.
Retail Expansion Success
The expansion of retail operations in Ohio, with the opening of five new stores, has been a significant growth driver for Jushi Holdings. The company is on track to open an additional 10 stores by early 2026, further strengthening its retail footprint.
Strategic Investments in Grower-Processor Operations
Jushi Holdings is making strategic investments in its grower-processor operations in Pennsylvania and Virginia. These investments are expected to increase the canopy by 35% to 45% in Pennsylvania and 50% in Virginia by 2026, promising high returns.
Brand and Product Portfolio Expansion
The launch of 602 new product SKUs in Q2 2025 has expanded Jushi’s offerings in the higher-quality market, enhancing its brand and product portfolio.
Wholesale Revenue Decline
Wholesale revenue experienced a decline of $1.4 million sequentially and $2 million year-over-year. This was attributed to limited product availability and delays in state-mandated system conversions.
Gross Profit Margin Decline Year-Over-Year
Despite improvements in gross profit margin sequentially, there was a decline from 50% in Q2 2024 to 44% in Q2 2025. This was mainly due to competitive pricing pressures in the market.
Cash Flow Challenges
The company faced cash flow challenges, with $1.9 million used in operations during Q2 2025, compared to cash provided by operations of $7.5 million in Q1 2025 and $5.5 million in Q2 2024.
Forward-Looking Guidance
Jushi Holdings provided forward-looking guidance during the earnings call, highlighting a focus on strategic growth. The company plans to open 10 new stores by early 2026 and is investing in capital projects to expand cultivation capabilities, anticipating high returns. Despite a challenging regulatory and market environment, Jushi is managing its debt strategically and reported a cash position of $25.2 million.
In summary, Jushi Holdings Inc.’s earnings call presented a mixed sentiment, with achievements in revenue growth and strategic expansions countered by challenges in wholesale revenue and cash flow. The company is making strides in improving net losses and gross profit margins, while navigating competitive pressures. Looking ahead, Jushi remains committed to strategic growth and expansion, positioning itself for future success.