Green Thumb Beats on Record Revenue, Circle K Stores Remain in Question

Revenue for the quarter exceeded analyst expectations.

Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF) posted positive results that beat analysts’ expectations, with record revenue showing the demand for cannabis even as profits shrink industrywide.

The owner of RISE Dispensaries on Wednesday afternoon reported its financial results for the third quarter ended Sept. 30.

Green Thumb reported third-quarter revenue of $261.2 million, up 2.7% sequentially and up 11.8% from the prior-year period. This beat the Yahoo Finance average analyst estimate of $257.3 million.

The company posted net income of $9.8 million, versus $20.2 million during the same time last year. The reduction in net income of $10.4 million was due primarily to favorable fair value adjustments to the company’s warrant liability, it said.

“We are proud to report record revenue and adjusted operating EBITDA for the quarter against a backdrop of higher inflation and greater economic uncertainty,” chairman and CEO Ben Kovler said. “As we near the end of 2022, we are optimistic about the future of the U.S. cannabis market and proud of Green Thumb’s leadership position in the industry.”

News that the company would start selling medical marijuana out of stores attached to Florida Circle K gas stations next year proved to be a highlight of the quarter.

However, while the agency hasn’t outright rejected the idea, the state’s Department of Health told Green Market Report that the project “has not been approved by the state.”

GTI also saw a board shakeup, in which company’s general counsel and corporate secretary, Beth Burk, resigned on Oct. 4 along with three of its four independent board members. All three directors were part of the company’s audit committee.

The company said the resignations were not related to financial performance, statements, or financial controls, but were over a “disagreement as to the company’s policies and practices related to personal misconduct.”

Green Thumb has been mostly mum on the issue.

GTI noted that rising revenue results were primarily driven by growing retail sales in Illinois and New Jersey, which legalized adult-use cannabis, as well as the addition of 12 new retail locations since the third quarter of last year.

The company also posted a positive GAAP net income for the ninth consecutive quarter of $10 million or $0.04 per diluted share.

Adjusted operating EBITDA was $84.5 million, or 32.3% of revenue, versus $81.2 million, 34.7% of revenue, for the third quarter last year.

Cash flow from operations was $48 million net of income tax payments of $31 million for the quarter.

The company’s assets were worth $318.6 million, including cash and cash equivalents of $147.3 million. Its total debt outstanding was $255.5 million.

“Looking ahead, our focus remains on execution, maintaining a strong balance sheet, and making strategic investments in markets that will generate strong returns for our stakeholders over time,” Kovler said.

Adam Jackson

Adam Jackson writes about the cannabis industry for the Green Market Report. He previously covered the Missouri Statehouse for the Columbia Missourian and has written for the Missouri Independent. He most recently covered retail, restaurants and other consumer companies for Bloomberg Business News. You can find him on Twitter at @adam_sjackson and email him at

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