MariMed (OTCMKTS:MRMD) reported record second-quarter revenue of $41.9 million, up about 6% sequentially and roughly 6% from a year earlier, as growth in both wholesale and retail operations offset continued pricing pressure across cannabis markets.
Chief Executive Officer Jon Levine said the company also generated positive operating cash flow and posted a sequential increase in adjusted EBITDA. He attributed the performance to operational discipline, product innovation, customer experience and capital allocation amid what he described as a highly competitive industry environment marked by price compression.
Wholesale and Retail Growth
Chief Commercial Officer Ryan Crandall said wholesale revenue rose 6% sequentially, supported by the company’s branded product portfolio. MariMed’s branded portfolio grew 70 basis points faster than the broader industry across its core markets, according to industry data sources cited by the company.
Distribution at third-party retailers increased by 100 basis points sequentially to 85% of available storefronts across MariMed’s core markets on a trailing 12-month basis, Crandall said.
Betty’s Eddies remained the top edible brand across MariMed’s wholesale markets and became Maine’s third best-selling edible brand after entering the state late last year, according to Crandall. Vibations THC drink mixes, InHouse gummies and Bubby’s Baked goods maintained top-10 market-share positions in their categories across core markets.
In Illinois, wholesale revenue increased 4% sequentially. Crandall highlighted progress for the Nature’s Heritage brand, saying its vape, pre-roll and concentrate products each improved their market-share rankings by at least 10 positions during the quarter. Maryland wholesale revenue rose 13% sequentially as production returned to normal following manufacturing issues discussed during the prior earnings call.
Retail revenue increased 7% sequentially, driven by the Thrive Dispensary network. MariMed said transactions across the network rose 7%, while membership in its Thrive Perks loyalty program increased 14% from the beginning of the year.
Illinois retail revenue also rose 7% sequentially, with contributions from all five of the company’s dispensaries in the state. Crandall said the company’s Illinois strategy has focused on loyalty programs, promotions, pricing and customer experience. He also cited Tennessee’s hemp ban and new regulations involving increased purchase allotments for in-state and out-of-state customers as favorable factors for stores in southern Illinois.
Delaware retail revenue climbed 32% sequentially, reflecting seasonal tourism and local execution during one of the state’s busiest periods, according to the company.
Margins and Market Pressures
Chief Financial Officer Mario Pinho said non-GAAP adjusted gross margin was about 40% in the quarter, nearly unchanged from 40.1% in the first quarter but below 41.8% in the year-earlier period. The year-over-year decline reflected more competition and increased promotional activity in Massachusetts and Illinois, where an expanding base of licensed operators has pressured both retail pricing and wholesale prices.
Operating expenses totaled $15.2 million, or approximately 36% of revenue, compared with 36.5% in the first quarter and 35% a year earlier. The quarter included a write-off tied to a wholesale partner that filed for bankruptcy, which Pinho described as an isolated event. Excluding that item, the company said it held operating expenses flat sequentially.
Adjusted EBITDA rose about 10% sequentially to $3.9 million from $3.6 million in the first quarter, though it was below $4.8 million in the prior-year quarter. Adjusted EBITDA margin was 9.4%, compared with 9.1% in the first quarter and 12.1% a year earlier. On a GAAP basis, MariMed reported a net loss of $3.6 million, improving from a $3.8 million loss in the first quarter.
The company ended the quarter with $8.4 million in cash and cash equivalents, up from $7.9 million at the end of the first quarter, and reported $33.6 million in operating working capital.
Expansion Plans and Massachusetts Conditions
Levine said construction of a new Thrive dispensary in Columbus, Ohio, remains on schedule, with the location expected to begin contributing revenue later this year. He also said a recent increase in Massachusetts dispensary ownership limits has created potential opportunities in the company’s home state, though MariMed will evaluate them carefully.
The company expects its brands to enter New York during the first half of 2027 through a planned launch. Levine said MariMed is also discussing additional capital-light brand licensing opportunities in other states.
In Massachusetts, retail revenue increased 4% sequentially, but executives said the market remains challenging because of saturation and continued price competition. Pinho noted that Massachusetts has one of the nation’s highest dispensary-per-capita ratios, creating elevated promotional activity and basket compression, particularly at the company’s Quincy and Middleborough locations. Crandall said the market appears more stable than it had been previously, but remains difficult.
Regulatory Outlook
Levine said MariMed is monitoring potential federal cannabis reforms, including further rescheduling developments, potential Section 280E tax relief and banking reform. He said the company expects incremental clarity by the end of the year.
During the question-and-answer session, Levine said MariMed has applied for U.S. Drug Enforcement Administration registration in all states where it holds medical licenses and expects its first DEA inspection within weeks.
Pinho said the company expects improved cultivation utilization, manufacturing efficiencies, greater scale in licensed markets and the planned Ohio dispensary opening to support margins in the second half of the year. He said MariMed’s focus remains on turning revenue growth into higher margins, stronger cash generation and improved shareholder returns.
About MariMed (OTCMKTS:MRMD)
MariMed Inc is a multi‐state cannabis company focused on the development, ownership and operation of regulated facilities for the medical and adult‐use cannabis markets. Headquartered in New Bedford, Massachusetts, the company cultivates, processes and dispenses cannabis through an integrated business model that encompasses cultivation, formulation, manufacturing and retail operations. MariMed operates under its own licensed brands and through strategic partnerships to expand its presence across the United States.
The company’s product portfolio includes branded flower, pre‐rolls, vaporizer cartridges, tinctures, edibles and topicals designed to meet a range of consumer and patient needs.
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