Trulieve Cuts Cash-Flow Outlook as Revenue Falls
Adjusted EBITDA margin widened sequentially to 36.2% despite lower sales.
Trulieve Cannabis Corp. (TRLV), the cannabis retailer, swung to a second-quarter net loss of $406.0 million, or $2.10 a share, after recording a $403.3 million loss tied to the deconsolidation of Harvest. The company had earned $2.4 million, or $0.01 a share, in the first quarter.
The June 3 transaction removed Harvest’s mixed medical and adult-use operations from Trulieve’s consolidated results as the company pursued a New York Stock Exchange listing. Trulieve retained a 90% economic interest, while 34 dispensaries and 0.5 million square feet of production capacity left its reported operations.
Revenue fell 10% from a year earlier and 6% sequentially to $271.0 million, with the quarter including Harvest only through the deconsolidation date. Adjusted net income was $20.4 million, roughly even with the first quarter and up from an adjusted loss of $7.7 million a year earlier. Adjusted diluted earnings rose to $0.11 a share from $0.10 sequentially and an adjusted loss of $0.04 a share a year earlier.
Medical-only revenue increased 4% from the first quarter to $222.3 million, supported by a 6% rise in traffic and an 8% increase in units. Retail revenue totaled $255 million, representing 94% of overall sales, as total retail traffic held near the year-earlier level and units sold increased 1%.
Gross margin widened to 59.9% from 59.3% sequentially, while gross profit declined 5% to $162.3 million. Adjusted EBITDA fell 2% from the first quarter and 11% from a year earlier to $98.0 million. Adjusted selling, general and administrative expenses declined to $85.9 million, though they rose to 31.7% of revenue as the sales base contracted.
Trulieve now expects third-quarter reported revenue to be comparable with the second quarter’s medical-only revenue of about $222 million. The company lowered its 2026 operating-cash-flow target to at least $225 million from $250 million because of the Harvest deconsolidation and raised planned capital spending to as much as $95 million from $85 million for investments in growth markets.
Operating cash flow declined to $53.1 million from $55.7 million sequentially, while free cash flow fell to $32.1 million from $42.2 million as capital expenditures increased. Trulieve ended the quarter with $325.4 million in cash, up from $255.5 million at year-end despite disposing of $58.4 million through the Harvest transaction, and authorized the repurchase of up to the lesser of $50 million or 8,495,038 subordinate voting shares.