Grown Rogue International Inc. Q2 FY26 Results

The second quarter reflected our continued focus on disciplined execution in our existing markets while expanding our platform to serve more customers across the US. 2026 has been a big year of growth for us as we work to complete the New Jersey expansion, ramp our newly activated production facility in Illinois, and finish construction and begin operations in Minnesota. These expansion activities are supported by our relentless focus on cultivation operations, initiatives to strengthen our brand and selectively expand our product portfolio, and continued efforts to build the team required to support our growth. From a financial standpoint, New Jersey continues to demonstrate the value of pairing quality flower with disciplined execution in a higher priced market, and that's with cultivation KPIs that still have room for substantial improvement. In Oregon and Michigan, our KPIs show continued strong performance in cultivation operations, and it's great to see modest pricing improvements rewarding our discipline in these hyper-competitive environments. I have been particularly pleased with our execution in Michigan after completing the technology improvements resulting in record yields and record-low costs. We are building a foundation of people and systems that can travel across markets without losing the quality and consistency that define Grown Rogue. Cultivation is the engine of our business and quality-adjusted yield, cost discipline and sell-through are the hallmarks of what converts strong performance into durable profitability. Oregon and Michigan keep us focused on those fundamentals, while New Jersey, Illinois and Minnesota give us opportunities to apply those capabilities at different points in the market cycle. There is still substantial work ahead, but we believe the operating platform taking shape today can give Grown Rogue a meaningfully different financial profile entering 2027.

Excluding the Michigan excise tax, second quarter results reflected 36% year-over-year revenue growth to $11.3 million and a 36% increase in Adjusted EBITDA to $2.1 million. It's worth noting that during the second quarter we recognized revenue related to Michigan wholesale excise tax of $402,000 with the corresponding accrued expense recorded as general and administrative expense. We ended the quarter with $11.5 million of cash and remain focused on working capital discipline and deploying capital against clearly defined return objectives. Based on our second quarter performance and current expectations for the balance of the year, we are updating our 2026 and 2027 guidance. Our outlook continues to recognize that Illinois and Minnesota will incur startup costs before generating meaningful revenue and that the New Jersey expansion will contribute more fully as its additional capacity ramps.

During the quarter, investors could begin to see the two principal components of our growth framework operating side by side. Minnesota represents a purpose-built new-market opportunity, while Illinois represents a capital-efficient turnaround of existing infrastructure. Both rely on the same underlying capabilities: disciplined underwriting, high-quality and high-performance cultivation, great people and repeatable operating systems.