Grown Rogue Reports Third Quarter 2025 Results
Executive Summary
- Grown Rogue International reported Q3 2025 pro‑forma revenue of $8.5 M (up 26% YoY) and pro‑forma Adjusted EBITDA of $1.7 M (up 25% YoY).
- IFRS‑reported revenue fell to $5.4 M (‑23% YoY) with Adjusted EBITDA of only $0.1 M (‑92% YoY), reflecting the exclusion of New Jersey affiliate results from GAAP numbers.
- The company added a $5 M bank loan (total debt $12 M, blended rate <8%) to fund growth initiatives, notably a new Minnesota cultivation project and continued expansion in New Jersey.
Key Details
- Pro‑forma Financials (Q3 2025 vs. Q3 2024)
- Revenue: $8.5 M vs. $6.7 M (+26%)
- Adjusted EBITDA: $1.7 M vs. $1.4 M (+25%)
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Pro‑forma EBITDA margin: 20.1% (down 2 bps)
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IFRS Financials
- Revenue: $5.4 M vs. $7.0 M (‑23%)
- Adjusted EBITDA: $0.1 M vs. $1.7 M (‑92%)
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Adjusted EBITDA margin: 2.6% vs. 23.8%
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State‑level Performance
- Oregon: Revenue $2.6 M (‑9% YoY); Adj. EBITDA $0.3 M (‑50% YoY); margin 11.6%.
- Michigan: Revenue $2.5 M (‑26% YoY); Adj. EBITDA $1.0 M (‑46% YoY); margin 39.7%.
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New Jersey (ABCO affiliate): Revenue $3.4 M (first full quarter); Adj. EBITDA $1.6 M; margin 46.6%.
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Operational KPIs
- Total flower harvested: 8,596 lb (up 23% YoY).
- Cost per pound produced fell to $348 in Oregon (‑18%) and $368 in Michigan (‑10%).
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Yield improvements across states; A‑grade flower ASPs down 28% YoY in Oregon but up 6% sequentially in Michigan.
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Financing
- Additional $5 M term loan drawn, raising total bank debt to $12 M at <8% blended rate.
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Loan and operating cash flow earmarked for Minnesota build‑out and broader growth initiatives.
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Strategic Initiatives
- New Minnesota cultivation license approved (up to 30,000 sf canopy); conditional use permit secured; lease negotiations ongoing.
- Continued product extensions: first cured resin vape cartridge in Oregon; redesigned pre‑packaged flower program in Michigan.
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Expansion of branded/packaged sales in New Jersey (≈80% of revenue) to drive margin improvement across all markets.
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Management Commentary
- CEO Obie Strickler highlighted “disciplined, low‑cost model” and the importance of branding/packaging for future growth.
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CFO Andrew Marchington noted that New Jersey results are currently reported under equity method; full consolidation expected in FY 2025 GAAP filing.
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Conference Call
- Date: Tuesday, Nov 11 2025, 5:00 p.m. ET (2:00 p.m. PT).
- Webcast registration link provided; replay available until Nov 18 2025.
Notable Quotes
“Our disciplined, flower‑forward, low‑cost model positions us to win as regulated cannabis continues to evolve.” – Obie Strickler, CEO
“We are prioritizing a new‑build opportunity in Minnesota… the existing balance sheet and internally generated cash flow are expected to provide sufficient capital to fund the first phase of the Minnesota project.” – Obie Strickler, CEO