Trulieve Cannabis (NYSE:TRLV) reported second-quarter revenue of $271 million, while outlining plans to expand in Georgia and Texas following changes in medical cannabis regulations and the company’s June listing on the New York Stock Exchange.
The company said reported second-quarter results included the combined Trulieve and Harvest businesses through a June 3 deconsolidation transaction, followed by medical-only Trulieve operations for the remainder of June. Revenue from medical-only operations totaled $222 million, up 4% sequentially.
Second-Quarter Results and Cash Flow
Trulieve reported second-quarter gross profit of $162 million, representing a 60% gross margin. Medical-only operations generated gross profit of $140 million and a 63% margin. Adjusted EBITDA was $98 million, or 36% of revenue.
The company reported a net loss of $406 million, primarily reflecting a $407 million impact from the Harvest deconsolidation and equity investment. Excluding non-recurring items, Chief Financial Officer Jan Reese said net income would have been $20 million, or $0.11 per share.
Operating cash flow totaled $53 million during the quarter, while capital expenditures were $21 million and free cash flow was $32 million. Trulieve ended the quarter with $325 million in cash and $289 million in debt.
- Second-quarter revenue: $271 million
- Medical-only revenue: $222 million, up 4% sequentially
- Adjusted EBITDA: $98 million, or a 36% margin
- Operating cash flow: $53 million
- Free cash flow: $32 million
- Quarter-end cash: $325 million
The company adopted a share repurchase program in June authorizing purchases of up to the lesser of $50 million or about 8.5 million shares. No shares were repurchased during the second quarter.
Georgia Expansion Gains Momentum
Rivers said Georgia represents a significant near-term growth opportunity after the state expanded its medical marijuana program. Beginning July 1, Georgia removed a THC cap, added qualifying conditions including HIV, IBS and lupus, and permitted products including vapor products and inhalable flower.
Trulieve said traffic at its Georgia dispensaries tripled during the first two weeks of July, though it subsequently sold out of flower. The company expects flower to return in the coming weeks as cultivation capacity ramps through year-end and into 2027. It also plans to introduce new concentrate and vape products in August and September.
Trulieve currently operates six dispensaries in Georgia and expects to open a seventh location in Dunwoody this fall. The company said Georgia’s patient count surpassed 45,000, making it eligible to open an eighth dispensary as early as 2027. Patient enrollment has risen 38% so far this year, according to Rivers.
The company also began supplying medical marijuana products to licensed independent pharmacies in Georgia during June and is now shipping to nearly 20 pharmacies. Rivers said more than 125 independent pharmacies had previously expressed interest in carrying medical marijuana products.
During the question-and-answer session, Rivers said Trulieve is considering several approaches to pharmacy distribution, including traditional wholesale arrangements, store-within-a-store concepts, joint ventures and potential pharmacy acquisitions. As a Tier 1 license holder, the company can expand to as much as 100,000 square feet of canopy under its current Georgia license, she said.
Texas Buildout and Other Growth Investments
Trulieve also highlighted Texas as a potentially large medical cannabis market. The company received a conditional license for the Texas Compassionate Use Program in December and is working to convert it into a final license.
The company said it has completed initial production capacity in Texas and has developed a retail pipeline intended to cover all 11 regions in the state. Texas has more than 157,000 patients, up 16% this year, according to Trulieve. Rivers said that represents less than 0.5% of the state’s population, compared with roughly 4% penetration in established medical markets such as Florida and Pennsylvania.
Rivers said Trulieve intends to use its Florida operating model in Texas, emphasizing vertically integrated operations and branded products sold through branded retail locations. While Texas permits wholesale activity, she said the company expects to focus initially on its own branded retail strategy.
Beyond Georgia and Texas, Trulieve has opened eight new Florida dispensaries year to date and refreshed or remodeled 24 locations across its markets. The company is also evaluating acquisition opportunities, including tuck-in assets as well as larger single-state and multistate operations, Rivers said.
Outlook and Customer Trends
For the third quarter, Trulieve expects revenue from medical-only operations to be comparable with the $222 million reported for medical-only operations in the second quarter. Growth in Georgia and Pennsylvania is expected to offset customary summer pressure in Florida, with growth anticipated to accelerate toward year-end.
The company expects third-quarter medical-only gross margin to be comparable with the second-quarter level of 63%. For the full year, Trulieve reduced its operating cash flow outlook to at least $225 million from $250 million, citing the impact of the deconsolidation. It raised expected capital expenditures to $95 million from $85 million to support investments in growth markets.
In Florida, Trulieve sold 56% more flower per store than the state average across 169 stores, totaling 680,000 ounces during the quarter, according to Rivers. The company also sold 1.5 billion milligrams of oil, more than twice the amount of the next-largest competitor, she said.
Trulieve said customer traffic in medical-only markets increased 6% sequentially, while units sold rose 8%. Its customer retention rate held at 78%, and its rewards program surpassed 1.1 million members after adding 80,000 during the quarter. Rewards members accounted for 80% of second-quarter transactions and spent an average of 2.2 times more than non-members, the company said.
The company’s Florida mobile application has surpassed 200,000 downloads since launch and accounted for 30% of online orders during the second quarter. Trulieve plans to launch the app in Georgia later this year, followed by additional markets in 2027.
About Trulieve Cannabis (NYSE:TRLV)
Trulieve Cannabis Corp. is a vertically integrated cannabis company focused on the cultivation, processing, and retail sale of medical and adult-use cannabis products. The company offers a range of products that may include flower, pre-rolls, concentrates, edibles, vape products, and topicals through its dispensary network and branded product portfolio.
Trulieve’s operations have been centered primarily in the United States, with a strong presence in Florida and additional markets in other states where cannabis is legally regulated.
