Green Thumb Industries Inc. (GTBIF)

Price$7.68Cached quoteAs of 2026-09-06 18:31 UTC

AI: Undervalued

Price checkThe shares look undervalued if recent cash generation survives weaker profit on each sale.

Using roughly 223 million diluted shares, the observed quote implies an equity value near $1.75 billion. Cash approximately matched debt, so enterprise value—the market value of operations after netting cash and debt—was similar. Trailing free cash flow, cash left after running and investing in the business, was about $198 million, or roughly nine times enterprise value. The shares also traded near 19 times trailing diluted earnings. That supports Undervalued, provided tax treatment stabilizes and cash generation does not fall toward the weaker first-half pace.

Big pictureRevenue keeps growing, but price pressure and licensing costs have sharply reduced reported profits.

First-half revenue rose 6% to $606.9 million, helped by Minnesota adult-use sales and growth in several states. However, gross margin—the sales portion remaining after product costs—fell to 46% from 51%. Operating income declined 26% to $60.7 million, while operating cash fell 20% to $104.8 million. A $17 million arbitration settlement also lifted pretax income. Cannabis results depend heavily on state openings and local supply, so expansion gains can be offset by falling product prices.

Business strengthCash nearly covers debt, while buybacks give each remaining share a larger ownership claim.

At June 30, cash was $283.6 million against approximately $283.0 million of notes, while current assets exceeded current liabilities by $405.5 million. Green Thumb spent $77.7 million repurchasing 13.4 million shares during six months, at an average below the observed quote. Stock compensation was $21.1 million, partly offsetting that benefit. The cushion is not entirely hard value: assets included $601.5 million of goodwill, while $72 million of convertible notes and a 33% investment expose shareholders to related-party RYTHM execution.

What could change the storyTax relief could lift profits, while persistent licensing costs could erase the apparent bargain.

Bull case: medical rescheduling allows more costs to be deducted, helping reduce an exceptional 76.6% first-half tax rate while new states sustain mid-single-digit growth. Bear case: quarterly gross margin remains near 45%, the fixed RYTHM brand fee reaches $70 million yearly, and local price compression continues. The valuation looks cheap if annual free cash flow stays near $200 million. If it settles near the first-half annualized level of roughly $130 million, the multiple rises toward 13 times and the discount becomes much less persuasive.

AI: News

Second-quarter margin squeezeSales grew, but lower margins and weaker operating cash exposed pressure beneath the headline improvement.

On August 4, Green Thumb reported quarterly revenue of $306.7 million, up 4.6% from a year earlier, and net income of $4.9 million. Operating cash fell to $29.0 million from $56.4 million. Gross margin dropped to 45% from 50%, reflecting price compression and $15.8 million of RYTHM licensing fees. The shares closed 7.3% lower the following session; the timing suggests a reaction, but does not prove the results alone caused it.

RYTHM consolidation setA related-party restructuring will add RYTHM to Green Thumb’s accounts, increasing complexity and exposure.

An August 10 amendment removed ownership limits covering 9.7 million RYTHM warrants and $72 million of convertible notes. It takes effect October 10, when Green Thumb must consolidate RYTHM despite saying it does not intend to exercise the securities. Consolidation will add RYTHM’s assets, liabilities, revenue, and expenses while removing certain transactions between the companies, complicating comparisons. The chief executive chairs both companies. Shares rose 4.4% on the filing date, although attribution is uncertain.

Medical cannabis tax reliefFederal rescheduling may lower medical-cannabis taxes, but the benefit remains narrower than full reform.

On April 23, the Justice Department moved state-licensed medical cannabis and federally approved marijuana products to Schedule III, effective April 28. The change does not cover all adult-use sales. Green Thumb said it should prospectively reduce part of its uncertain tax provision, but Treasury guidance was still pending. Its second-quarter effective tax rate remained 78.5%, versus 96.7% a year earlier. Confirmed deductions could materially increase after-tax earnings and cash, while a narrow interpretation would limit the benefit.

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Revenue

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018
Revenue	$1.18B	$1.14B	$1.05B	$1.02B	$893.6M	$556.6M	$216.4M	$62.5M
Gross profit	$574.9M	$601.1M	$526.5M	$504.0M	$491.9M	$304.2M	$107.0M	$28.3M
Gross margin	48.91%	52.86%	49.93%	49.54%	55.05%	54.65%	49.45%	45.31%
Operating expenses	$437.2M	$376.7M	$341.9M	$382.9M	$277.1M	$198.1M	$134.7M	$54.7M
Operating income	$137.7M	$224.4M	$184.6M	$121.1M	$214.8M	$106.1M	−$27.7M	−$26.3M
Operating margin	11.72%	19.74%	17.51%	11.90%	24.04%	19.06%	−12.79%	−42.15%
EBITDA	$283.1M	$337.6M	$285.4M	$217.7M	$283.3M	$158.6M	$3.8M	−$21.2M
EBITDA margin	24.09%	29.69%	27.07%	21.40%	31.70%	28.50%	1.75%	−33.85%
Net income	$114.2M	$73.1M	$36.3M	$12.0M	$75.4M	$15.0M	−$59.1M	−$5.2M
Net profit margin	9.71%	6.43%	3.44%	1.18%	8.44%	2.69%	−27.31%	−8.39%
Basic EPSper basic share	$0.49	$0.31	$0.15	$0.05	$0.34	$0.07	-$0.31	-$0.04
Diluted EPSper diluted share	$0.48	$0.30	$0.15	$0.05	$0.33	$0.07	-$0.31	-$0.04

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 6 reported holders of GTBIF
Holder	Shares held
NANO CAP NEW MILLENNIUM GROWTH FUND L P	142.5K
THOMPSON INVESTMENT MANAGEMENT, INC.	95.31K
ALBERT D MASON INC	95.29K
Vermillion & White Wealth Management Group, LLC	28.18K
Ancora Advisors LLC	1.5K
Sterling Capital Management LLC	48

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys1$5.0K disclosed value

Sells (SEC code S)17$11.14M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 12, 2026Form 4	Kovler BenjaminCHAIRMAN & CEO	SellSuper Voting Shares	2.5K	$780.00	$1.95M	52.6K
May 12, 2026Form 4	Georgiadis AnthonyPRESIDENT	SellSuper Voting Shares	2.5K	$780.00	$1.95M	32.7K
Dec 30, 2025Form 4	Kravitz BretGENERAL COUNSEL AND SECRETARY	SellSubordinate Voting Shares	12.7K	$8.35	$105.7K	452.5K
Dec 29, 2025Form 4	Kravitz BretGENERAL COUNSEL AND SECRETARY	SellSubordinate Voting Shares	7.3K	$7.86	$57.7K	465.1K
Dec 28, 2025Form 4	Kovler BenjaminCHAIRMAN & CEO	SellSuper Voting Shares	2.5K	$798.80	$2.00M	55.1K

Review ownership filings at SEC.gov ↗

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Green Thumb Industries Inc. (GTBIF)

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