In a quarter where most big U.S. cannabis companies flatlined, one actually grew: Green Thumb Industries Inc. (OTCQX:GTBIF).

The Chicago-based company reported $280 million in revenue for the quarter, a 1% increase over Q1 2024. According to a new report from Zuanic & Associates, no other operator in its peer group achieved positive growth during the same period. That makes GTI a notable outlier in a sector where revenue declines and flatlining were the norm.

Brand Strength And Sales Strategy

A key factor behind Green Thumb's performance is its strong portfolio of in-house brands, which account for roughly 90% of the company's retail sales. Wholesale also played a significant role, contributing 29% of total revenue, an indicator of manufacturing scale and brand traction beyond GTI's own stores.

Profitability And Cash Flow

Green Thumb reported an adjusted EBITDA margin of 30.5% and a gross margin of 51.3% in Q1. The company's SG&A expenses totaled 70% of gross profit, reflecting tight cost control.

Operating cash flow came in at $43 million, the highest among the Tier 1 operators covered in the report. Zuanic highlighted GTI's cash conversion rate (51% of EBITDA) as a key sign of financial health.

Conservative Tax Positioning

While some industry players are adjusting their 280E tax provisions in anticipation of possible reform, Green Thumb continues to account for the full liability. Zuanic frames this as a conservative approach that may prove prudent if legislative changes are delayed or fail to materialize.

Strong Balance Sheet

Green Thumb also leads in balance sheet discipline. Net debt to EBITDA is just 0.1x. Including deferred tax liabilities, the ratio rises to only 0.2x. The company reported $210 million in cash as of quarter-end.

Analyst Take

Zuanic reiterated an Overweight rating on GTI, citing growth, brand strength, operational efficiency and a conservative financial strategy as key differentiators.

Read the full report on Zuanic’s website.

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