Grown Rogue Reports Second Quarter 2025 Results

Executive Summary

• Grown Rogue International Inc. reported its Second Quarter 2025 financial results, showing a 4% year-over-year increase in Pro Forma Revenue to $8.01 million, driven by the inclusion of its New Jersey affiliate, ABCO.
• Pro Forma Adjusted EBITDA decreased 12% year-over-year to $1.82 million, while Reported IFRS Revenue dropped 28% to $5.56 million and Reported Adjusted EBITDA fell 75% to $0.53 million.
• The company highlighted significant pricing pressure in Oregon and Michigan, with Average Selling Prices (ASP) for A-grade flower down 25-26% year-over-year, though operational efficiencies improved cost per pound and yield metrics.

Key Details

• Pro Forma Financials (Including NJ Affiliate ABCO):
  • Pro Forma Revenue: $8.01 million (up 4% YoY).
  • Pro Forma Adjusted EBITDA: $1.82 million (down 12% YoY).
  • Pro Forma EBITDA Margin: 22.7%.
• Reported IFRS Financials:
  • Revenue: $5.56 million (down 28% YoY).
  • Adjusted EBITDA: $0.53 million (down 75% YoY).
  • Net Income: $1.42 million for Q2 2025 (vs. Net Loss of $7.57 million in Q2 2024).
• State-Level Performance (Q2 2025 vs Q2 2024):
  • Oregon: Revenue $3.08 million (down 16%); Adjusted EBITDA $0.80 million (down 30%); Margin 26.1%.
  • Michigan: Revenue $2.28 million (down 34%); Adjusted EBITDA $0.78 million (down 54%); Margin 34.2%.
  • New Jersey (ABCO Affiliate): Revenue $2.65 million; Adjusted EBITDA $1.29 million; Margin 48.6%.
• Operational Metrics (Oregon & Michigan):
  • Total Flower Harvested: Oregon 2,942 lbs (up 20%); Michigan 3,432 lbs (up 14%).
  • Cost per Pound Produced: Oregon $471 (down 16%); Michigan $369 (down 15%).
  • Yield (A/B Flower): Oregon 63 g/sf (up 8%); Michigan 72 g/sf (up 13%).
  • Average Selling Price (A-Grade): Oregon $617/g (down 25%); Michigan $817/g (down 26%).
• Balance Sheet Highlights (as of June 30, 2025):
  • Cash and Cash Equivalents: $9.25 million.
  • Total Assets: $48.08 million.
  • Total Liabilities: $19.18 million.
  • Share Capital: $48.02 million.
• Strategic Updates:
  • Construction underway for Phase 1 of the affiliate Illinois cultivation facility.
  • Evaluating Minnesota as a potential new market; pre-approval for cultivation license obtained.
  • Management is evaluating distressed acquisition opportunities in the industry.
  • Monitoring federal discussions on cannabis rescheduling.

Notable Quotes

• Obie Strickler, CEO: "We have seen pricing in Oregon and Michigan compress significantly over the last year... We believe price normalization is a natural and healthy part of any market... Even as pricing has come down, our teams continue to deliver profitability and attractive returns on capital."
• Josh Rosen, CSO: "We view this period of industry distress as a real opportunity — our flower-forward model is built to thrive in competitive, price-sensitive markets... Distressed and restructuring transactions tend to be slow and complex... but we'll be disappointed if this isn't a meaningful contributor to our growth over the next 18–24 months."
• Andrew Marchington, CFO: "Financially, we remain in a strong and flexible position – our core operations in Oregon and Michigan continue to generate healthy cash flow, and New Jersey is already contributing meaningfully while still early in its scale-up."