Green Thumb Indus Sub Vtg

Good day and thank you for standing by. Welcome to Green Thumb Industries Q226 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would like to now hand the conference over to your first speaker today, Andy Grossman, EVP Capital Markets. Please go ahead.

Thank you, Angelina. Good afternoon and welcome to Green Thumbs' second quarter 2026 earnings call. I'm here today with founder and CEO Ben Kovler, President Anthony Georgiadis, and Chief Financial Officer Matt Faulkner. Today's discussions and responses to questions may include forward-looking statements. These risks and uncertainties are detailed in the earnings press release issued today, along with reports filed with the United States Securities and Exchange Commission and Canadian securities regulators, including our most recent annual report filed on Form 10-K. This report, along with today's earnings release, can be found under the Investors section of our website. Green Thumb assumes no obligation to update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this call. Throughout the discussion, Green Thumb will refer to non-GAAP financial measures, including EBITDA, normalized EBITDA, and adjusted EBITDA. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures is included in our earnings press release and SEC and CEDAR Plus filings. Please note that all financial information is provided in U.S. dollars unless otherwise indicated. Thanks everyone and now here's Ben.

Thanks Andy. Good afternoon everyone and thank you for joining Green Thumb's second quarter 2026 earnings call. Before we get into the numbers, I want to take a step back. We're nearly 12 years into the Green Thumb story, building the company from scratch with no roadmap, no playbook, no guarantee of anything, yet quarter after quarter, year after year, We show up and build brands Americans love. We take care of our team, manage the balance sheet, and do the work. That's the Green Thumb story. Simple, but not easy. We built the company to stand on its own without waiting for federal reform. That discipline is paying off. Medical cannabis is now on Schedule 3 of the Controlled Substances Act. The first domino has fallen. The DEA's broader rescheduling hearing wrapped in mid-July and we expect a decision on the rest of cannabis later this year. This is, in fact, real progress. The direction is clear, even if the timing isn't. When the next domino falls, Green Thumb will be ready with the brands, the balance sheet, and the team to meet the moment. That work is already underway, as we shared on our last call. We've registered some of our state-licensed medical cannabis operations with the DEA, and site inspections have begun. This is important because this makes these operations federally legal. We're also preparing to uplist Green Thumb on a U.S. exchange as the path opens. We anticipate listing the business in full, not in part, and we have open dialogues with both major exchanges. But we didn't get to where we were going by waiting, and we won't start waiting now. The state-level environment is more dynamic than it's been, including changes in Virginia and Texas. But here's the bottom line. DreamThumb is in a strong position. Our business generates cash, and we carry a strong balance sheet, which means we engage the capital markets on our terms. And as the environment changes, we won't be reacting to it. We'll be moving on it from a position of strength. And that strength starts with the results. So let's turn to the quarters. Second quarter revenue came in at $307 million, up 5% year-over-year. Normalized EBITDA was $84 million, or approximately 28% of revenue. Cash flow from operations was $29 million. There's real momentum here, and we're proud of the stability we've built despite ongoing price compression and competition. Our results demonstrate this as we see early signs of potential price stabilization in some markets. We ended the quarter with $284 million in cash on the balance sheet, and that's over a dollar a share. But beyond the numbers, the bigger story this year has been state-level regulatory progress. Positive developments in Virginia and Texas get us excited about future growth. Together, these two states represent broader access for roughly 12% of the country's population. And in both, we already have a head start. Anthony will walk through some of those highlights, but the takeaway is simple. Careful planning and a deep understanding of each market's dynamics means we are ready. That same discipline shapes our current approach to growth through tuck-in deals and steadily expanding retail footprint. We're keeping a close eye on hemp policy with the federal ban set to take effect on November 12th of this year, but you never know. Interestingly, Ohio offers a preview of what could happen across the country. Following the state's own ban on intoxicating hemp, Ohio's regulated market has grown more than 10% based on state-level data. Consumers are moving into the regulated market and we expect hemp demand to keep shifting into cannabis as the ban takes hold. In other words, if the ban takes place, it favors operators with scale, brands, and shelf space already in place. This backdrop matters for one of the fastest growing categories, THC beverages. In our view, beverages are a distinct category from intoxicating hemp products, and we think regulators and industry participants are starting to see the same thing. We remain big believers in the category, and we are optimistic that this transition will eventually carve out a lasting place for THC beverages in the mainstream market. They're already showing up at major events and venues across the country, including Lollapalooza and the United Center, and at retailers like Circle K, Target, and Total Wine. We're paying close attention to the consumer trends, particularly through our investment in Rhythm Inc. And on that note, there's a potential change coming to how Rhythm Inc. appears in Green Thumb's financials, in our results. On August 10th, Rhythm shareholders will vote on a proposal that, if approved, would result in Green Thumb consolidating Rhythm into our financial statements as early as October 10th, 2026. Presenting the combined economics in one place rather than under the equity method that we use today. Nothing will change economically, but our reported results will look different once they include Rhythm. You can find more information on this potential change for Rhythm Inc. in the proxy file by Rhythm with the SEC on July 9th, 2026 on sec.gov and available on the Rhythm website. We believe Green Thumb has created significant value that the market is not currently reflecting. Structural issues in this industry are real, but we never let the things we can't control define the things we can. We are building this company for the next decade or decades, not the next quarter or year. That conviction is why we allocate capital towards repurchasing shares at these levels. During the quarter, we bought back the equivalent of about 8 million shares at an average price of just over $6. And since Q4 2023, we've repurchased approximately 29.5 million shares at an average price of $7 per share, which represents more than $200 million returned to shareholders in a tax-efficient manner. That's roughly 13% of the shares outstanding, so each remaining share represents a 13% bigger portion of the business. So, we'll continue to do exactly what we said we would do, grow the business, take care of our team, return capital to shareholders when it makes sense, and pounce when the opportunity presents itself. all while the environment catches up to the value we've created and continue to build. We are deeply committed to creating long-term value for all of our stakeholders and that will always be the Green Thumb story. With that, I'll turn the call over to Anthony.