Sequential Revenue Growth
Net sales of $47.3 million, up 15.4% sequentially from the second quarter of 2025.
Improved Gross Margins and Return to Profitability
Gross margins expanded to 27.2%, and the company returned to positive adjusted EBITDA of $1.3 million, a $3.7 million improvement from the same quarter last year.
Proprietary Brands Growth
Proprietary brands grew to 31.6% of cultivation and gardening revenue, compared to 23.8% a year ago, with brands like Char Coir growing over 30% year-over-year.
Cost Reduction Initiatives
Store operating expenses reduced by 27.8% and total operating expenses by 31.5% year-over-year.
Strong Balance Sheet
Ended the quarter with $48.3 million in cash and no debt.
Strategic Market Expansion
Expanded B2B reach and entered new markets like independent garden centers and international territories such as Costa Rica and the European Union.