Grown Rogue International Reports Q4 and FY 2025 Results, Issues Strong Growth Outlook

Key Highlights for Investors

• Record Revenue Growth: Grown Rogue International Inc. reported preliminary, unaudited revenue of \$32.4 million for the full year 2025, marking a 22% increase from \$26.6 million in 2024. This growth was primarily driven by the company’s entry into the New Jersey market late in 2024.
• Adjusted EBITDA Surges: Adjusted EBITDA (non-GAAP) rose to \$5.4 million (16.5% margin) for 2025, a 42% increase from \$3.8 million in 2024, despite significant pricing pressures in Michigan and Oregon.
• Positive Net Income: GAAP net income reached \$3.2 million for 2025, which includes a non-cash gain of approximately \$5.9 million related to the fair value of derivative liabilities.
• Quarterly Snapshot: Q4 2025 revenue was \$8.8 million, with Adjusted EBITDA of \$1.2 million (13.4% margin). However, the quarter saw a GAAP net loss of (\$2.1) million, reflecting ongoing pricing headwinds in legacy markets and new investments.
• Transition to U.S. GAAP & Full Consolidation of New Jersey Operations: The company has transitioned its financial reporting from IFRS to U.S. GAAP and now consolidates its New Jersey operations, making the results more comparable to U.S. peers and providing enhanced transparency and guidance.

Operational and Strategic Developments

• New Jersey Expansion: The company’s affiliate, ABCO Garden State, ended its first year with full sell-through of packaged, branded products. The Phase II expansion is underway, expected to increase capacity by 25% in May 2026, with further incremental capacity buildouts through year-end to reach a total of 16,000 sq. ft. of flowering canopy.
• Oregon & Michigan: Both markets faced substantial pricing pressure in 2025, with production cost of dry-weight cannabis biomass in mature facilities remaining below \$225 per pound. Operational efficiencies and SOP improvements have helped maintain industry-leading cost controls.
• Minnesota Entry: Construction of a new 8,000 sq. ft. cultivation facility in Fridley (Phase I) is expected to come online late in Q3 2026, with revenue anticipated in Q1 2027.
• Illinois Market Entry: Post year-end, Grown Rogue announced definitive agreements to enter Illinois via a turnkey cultivation facility in Dwight, with initial online capacity of 5,000 sq. ft. targeted for Q4 2026.
• Financial Strength: The company closed two tranches under its senior secured credit facility in 2025, totaling \$12.0 million with a blended rate of 7.84%. Year-end cash and cash equivalents were \$11.4 million, up from \$4.9 million in 2024.
• Multi-Year Growth Framework: Management introduced new 3-5 year growth targets and provided annual guidance, including targets for revenue, profit, and return on incremental invested capital (ROIIC).

Financial and Operating Performance

• 2025 Segment Revenue Breakdown:
  • Oregon: \$11.1 million (down 8% YoY)
  • Michigan: \$10.0 million (down 22% YoY due to heavy pricing pressure)
  • New Jersey: \$11.3 million (up from \$0.3 million; first sales started Dec 2024; now fully consolidated)
  • Corporate/Other: \$0.0 million (down from \$1.3 million; consulting agreement terminated)
• Production Metrics: In 2025, the company produced approximately 8,600 lbs in Oregon, 13,000 lbs in Michigan, and 6,000 lbs in New Jersey.
• Pricing and Product Mix: Packaged, branded products account for 95%+ of revenue in New Jersey, while bulk sales dominate in Oregon and Michigan. Average selling prices for bulk flower varied from ~\$466/lb (Oregon Q4 2025) to ~\$1,193/lb (New Jersey Q4 2025).
• Cost Efficiency: Flower cost per pound produced in mature facilities remained below \$225, with notable improvements from infrastructure investments and SOP optimizations.

2026-2027 Guidance and Long-Term Objectives

• 2026 Guidance: Revenue expected in the range of \$32–\$35 million, with Adjusted EBITDA of \$6–\$8 million. Guidance excludes start-up expenses in Illinois and Minnesota.
• 2027 Guidance: Revenue is projected at \$50–\$58 million, with Adjusted EBITDA of \$14–\$18 million. 2027 guidance assumes further capacity expansions in New Jersey, Illinois, and Minnesota.
• Long-Term Targets (3–5 years):
  • Annual revenue growth of 25% CAGR
  • Adjusted EBITDA growth of 35% CAGR
  • ROIIC greater than 75%
• Capacity Expansion: By end of 2026, operations are expected in five states with ~58,000 sq. ft. of flowering canopy, a 55% increase from current capacity. Further expansion is planned for 2027, with total nameplate capacity anticipated at ~89,000 sq. ft.

Other Noteworthy and Potentially Price-Sensitive Items

• GAAP Reporting Conversion: Grown Rogue no longer qualifies as a “foreign private issuer” and now reports under U.S. GAAP and SEC requirements. This transition also brings full consolidation of New Jersey operations and will enhance transparency and comparability for U.S. investors.
• Market Risks: Shareholders should note ongoing pricing pressure in Oregon and Michigan, potential regulatory changes, and the capital requirements for expansion into new states.
• Tax and Lease Adjustments: The accounting conversion to GAAP brought more conservative treatments of lease and bad debt expense, impacting comparability with prior periods.
• Consulting Agreement Termination: The Vireo consulting agreement was terminated in September 2024; related service revenue is no longer present.
• Q1 2026 Outlook: Management expects revenue growth of more than 20% year-over-year, mainly from New Jersey, despite ongoing challenges in legacy markets.

Management Commentary

“2025 was focused on growth and investment for the future with our commitments in new markets and additions to our team, while staying grounded in what we do best: consistently delivering craft-quality flower, supported by a cost structure designed to compete through price normalization.” – Obie Strickler, CEO

“Our growth plan is focused on disciplined capital allocation and targeted returns… We believe our efforts position Grown Rogue to capitalize on what we see as a rich set of opportunities in the cannabis industry.” – Josh Rosen, Chief Strategy Officer

Conference Call Details

• Date: April 7, 2026
• Time: 5:00 p.m. ET (2:00 p.m. PT)
• Webcast and Replay: Available on the Grown Rogue Investor Relations website
• Contact: [email protected]

About Grown Rogue International

Grown Rogue International Inc. (CSE: GRIN | OTC: GRUSF) is a flower-forward cannabis company rooted in Oregon, with operations currently spanning Oregon, Michigan, and New Jersey, and expansion underway in Illinois and Minnesota. The company is known for high-quality, consistent indoor flower and a disciplined, scalable approach to operations.

Disclaimer

This article contains forward-looking statements based on management’s current estimates and expectations. Actual results may differ materially due to risks and uncertainties, including market conditions, regulatory delays, and other factors. Investors should not rely solely on this article for investment decisions. Please refer to Grown Rogue’s official filings and disclosures for full risk factors and further details.

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