Marimed Inc

Thank you for standing by. At this time, I would like to welcome everyone to the Meramed fiscal year and fourth quarter 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. I would now like to turn the conference over to Andrew Pacheco, General Manager for Merrimed in Massachusetts. Sir, the floor is yours.

Hello and good morning, everyone. I'm Andrew Pacheco, General Manager for Massachusetts at Merrimed. I'm honored to kick off today's 2025 fiscal year and fourth quarter earnings call. My team at our New Bedford cultivation and processing facility is responsible for the manufacturing of our great brands that is distributed throughout the state. I'm privileged to see firsthand the expertise, collaboration, and dedication our employees contribute on a daily basis. They take the company's mission to improve lives every day very seriously. You're going to hear during this call about our performance in Massachusetts in 2025, relative to the rest of the market. And I think it's our team's commitment to our success that's a huge part of what differentiates us and our performance in Massachusetts. Joining the call today are John Levine, our chief executive officer, Ryan Crandall, our chief commercial officer, and Mario Pino, our chief financial officer. This call will be archived on our investor relations website and contains forward-looking statements. Actual events or results may differ materially from these forward-looking statements and are subject to various risks and uncertainties. These risks are discussed in the Risk Factors section of our 10-K and 10-Qs available on our website. Any forward-looking statements reflect management's expectations as of today and we assume no obligation to update them unless required by law. Additionally, we will refer to certain non-GAAP financial measures which are reconciled in our earnings release. I will now turn the call over to John for his overview.

Thank you, Andy. Good morning, everyone, and thank you for joining us. Last night, we reported full-year revenue of $160 million for 2025, a 1% increase over 2024. 2025 also marked the sixth consecutive year we generated positive adjusted EBITDA. The cannabis industry continues to evolve rapidly. As we have consistently said, we believe an enduring advantage in this environment will come from owning the strongest and most accessible brands. That conviction continues to guide our Expand the Brand Roadmap. which is built around three strategic pillars. First, capturing meaningful market share in our existing markets. Second, investing thoughtfully to bring our best performing brands into new markets. And third, of further strengthening our balance sheet to support long-term growth initiatives. We made progress across all three pillars in 2025. and have continued advancing them into early 2026. With respect to the first pillar, owning a meaningful share in each of our existing markets, our proven wholesale capabilities delivered another strong year as wholesale revenue grew in each of our core markets. Our integrated expertise across cultivation, manufacturing, distribution, and marketing in addition to the quality of our products, has enabled several of our brands to secure leading market positions. Notably, for the fourth quarter, Betty's Eddie's was the number one selling edible across the markets where it's available. In the beverage category, which includes hundreds of ready-to-drink options, our Vibations Powder Drink Mix ranked fourth. Turning to the second pillar, expanding into new markets, in 2025, we laid the groundwork to bring our brands to Pennsylvania and New York and launched Betty's Eddies in Maine through a new licensing agreement. Expanding through licensing is a clear validation of our brand's strengths. We're very confident about the revenue potential for our brands in Pennsylvania. especially with adult sales likely to come in the next year or two. We've watched our product thrive in the neighboring states of Maryland and Delaware. We're already learning a lot about the Pennsylvania market through the managed services partnership we entered into in 2025. In fact, we helped significantly grow our partners' revenue during the short period in which we've managed their business in Pennsylvania. We've established a licensing agreement with the same partner last year, and they've submitted our products and packaging for state approval. Turning to New York, construction is underway on the processing kitchen we're building with our partner. That project is on schedule. In Maine, our new licensing partner began distributing Betty's Eddies during the fourth quarter of 2025, and we're tracking with our expectations, achieving positive results with exceptional sell-through at the accounts opened today. Collectively, adding these three states provide a strategic foothold for Merrimet across the Northeast and Mid-Atlantic. Licensing allows us to pursue growth and expand brand distribution in a capital-efficient manner and will continue to pursue other agreements as part of expand our brand strategy. This brings me to our third pillar, continuing to strengthen our balance sheet. We have always maintained a strong balance sheet and we intend to continue fortifying it to support our future growth initiatives. Last week, we successfully completed the restructuring of the convertible stock held by our Series D shareholder. The agreement extended the maturity of the preferred shares, further enhancing our financial flexibility to support our growth initiatives. We are pleased to execute the agreement with favorable market terms for the company. along with reductions in operating expense that Mario will discuss, our objective to provide the stability and flexibility required to execute our growth plan. We recognize that implementing all the initiatives I've outlined only get us part of the way to our goal of value creation we seek and our investors deserve. To help us achieve that goal, a creative M&A remains an active and imperative avenue for the company. Our Thrive retail stores also play an integral role in our growth plan. First, they serve as premium showcases for our brands. Second, they enable us to cultivate direct consumer relationships through our Thrive loyalty program. Third, and perhaps the most important, retail will continue to generate the majority of our revenue and operating cash flow. In Ohio, we intend to leverage our second retail license with a new Thrive store to be located in the Columbus area. We anticipate it opening this year. In summary, in 2025, we maintained or strengthened our brand leadership across core markets and expanded our geographic reach. We intend to build on our momentum in 2026 while continuing to reinforce our financial foundation. Our primary growth drivers this year will include continued wholesale penetration and full year contributions from Delaware's expanding adult use market in our main licensing partnership. An anticipated revenue generated by our new Ohio dispensary. At the same time, we will do everything in our control to move up the timeline for distribution of our brands in Pennsylvania and New York. While we remain optimistic about the potential for federal reform and Schedule III finally getting over the finish line, our growth strategies do not depend on it. It depends on disciplined capital allocation and the execution capabilities of the strongest team in cannabis, and we are fortunate to have both. I want to thank our employees for their dedication, hard work, and unwavering commitment. Their contributions are the foundation of our success. I'll now turn the call over to Ryan to provide details around our fourth quarter performance.