Green Thumb Indus Q3 2026 Earnings Call Transcript
Green Thumb Indus (OTC:GTBIF) reported third-quarter financial results on Wednesday. The transcript from the company’s third-quarter earnings call has been provided below.
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Summary
Green Thumb Indus reported third quarter 2026 revenue of $324 million, marking an 11% year-over-year increase, with normalized EBITDA at $89 million, equating to 28% of revenue.
The company continues to focus on federal regulatory changes, particularly the rescheduling of cannabis and tax clarity under Section 280E, with progress noted in DEA registration for medical licenses in Florida and Virginia.
Green Thumb Indus is expanding its retail footprint, opening new dispensaries in states like Florida, Nevada, and Pennsylvania, while planning further expansion in Texas and Virginia, where adult-use sales are expected to begin in July 2027.
The company authorized a $50 million share repurchase program and has returned over $200 million to shareholders since 2023, maintaining a strong balance sheet with $316 million in cash.
Management remains optimistic about the future growth of THC beverages and the broader cannabis market, despite current pricing pressures and competitive challenges in several markets.
Full Transcript
OPERATOR
Good day and thank you for standing by. Welcome to Green Thumb Indus third quarter 2026 earnings call. Please be advised that today’s conference is being recorded. I would now like to hand the conference over to your first speaker today, Ashley Dunn, Vice President, Communications. Please go ahead.
Ashley Dunn (Vice President, Communications)
Thank you, operator. Good afternoon and welcome to Green Thumb Indus third quarter 2026 earnings call. I’m here today with founder and CEO Ben Kovler, President Anthony Georgiadis, and Chief Financial Officer Matt Faulkner. Today’s discussions and responses to questions may include forward-looking statements which are subject to various risks and uncertainties that could cause our actual results to differ materially from these statements. These risks and uncertainties are detailed in the earnings press release issued today along with the reports filed with the United States Securities and Exchange Commission and Canadian securities regulators, including our recent annual report filed on Form 10-K. This report, along with today’s earnings release, can be found under the Investors section of our website. Green Thumb Indus assumes no obligation to update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this call.
Throughout the discussion, Green Thumb Indus will refer to non-GAAP financial measures, including EBITDA, normalized EBITDA and adjusted EBITDA. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures is included in our earnings press release and SEC and SEDAR+ filings. Please note that all financial information is provided in U.S. dollars unless otherwise indicated. Thanks, everyone. And now here’s Ben.
Ben Kovler (Founder, CEO and Chairman)
Thank you, Ashley. Good afternoon, everyone, and thank you for joining Green Thumb Indus third quarter 2026 earnings call. Let me start with the bigger picture before we get to the quarter. For more than a decade, Green Thumb Indus has operated in an industry defined by uncertainty. No federal framework, no roadmap, and no guarantee that the rules in place today will be the rules tomorrow. Navigating that uncertainty isn’t a side skill for us. It’s a core competency.
Our formula has not changed. We build brands people love, invest in our team, and protect the balance sheet. We delivered on all three again this quarter. On the last call we talked about the industry being on the cusp of meaningful federal change. And the honest update is today that process is ongoing. Medical cannabis is on Schedule 3, which is real progress, but the broader rescheduling decision is still pending. The federal landscape remains the single biggest wildcard in our industry. But here’s what we’ve learned. For years, we saw uplisting to a major U.S. exchange as the catalyst that would unlock value in this sector.
But we’ve seen that a listing alone doesn’t change how investors value the business. What institutions need is federal certainty, clarity on scheduling and clarity on taxes. That’s the real unlock, and that’s where we’re focusing our energy with policymakers and the investment community. Tax clarity is a big part of that. Section 280E no longer applies to our medical business, and Treasury and the IRS have made guidance on 280E one of their priorities for fiscal 2027. How soon that clarity arrives matters for us and for every operator trying to model its tax position. Separately, our DEA registration process is progressing, with certain medical licenses now registered in Florida and Virginia and others pending at the state level.
Massachusetts voters overwhelmingly chose to keep the state’s adult-use program in place, with over 75% voting no on Question 8. So while the industry is still in flux, we remain engaged across all kinds of regulatory scenarios. You can see that continued discipline in this quarter’s results. Third quarter revenue came in at $324 million, up 11% year over year. Normalized EBITDA was $89 million, or approximately 28% of revenue. That margin is in line with the third quarter of last year. Even with the pricing pressure we continue to see in several markets, cash flow from operations was $58 million, a solid step up from the second quarter. We ended the quarter with $316 million in cash on the balance sheet, and this gives us real flexibility on how we deploy that capital.
Pricing pressure persists in several of our markets, but our results remain a credit to our brands and to our team. Hemp policy is another area we’re watching very closely. Under current federal law, intoxicating hemp products become illegal on December 11, and a number of states have already moved ahead with their own bans or restrictions. Our position is that unregulated, untaxed, and untested products don’t belong on store shelves. We’ve long viewed THC beverages as a distinct category from intoxicating hemp products, and we believe they should exist in a regulated market.
These products have demonstrated real consumer appeal. From major retailers to stadiums and entertainment venues, THC beverages are emerging as a viable fourth adult beverage category, right alongside beer, wine, and spirits. Leading retailers and wholesalers have played an important role in that progress, and their backing has given the category credibility. Even with the forthcoming changes to federal law, as consumers continue to reach for these beverages, we should establish a reasonable framework for its future.
Through all of this, our brands remain strong. At the end of the third quarter, RYTHM ranked number one nationally in branded flower and Dogwalkers ranked number one nationally in uninfused pre-rolls. Dogwalkers is also marking its 10-year anniversary this year, reflecting a decade of building brand equity with consumers. Cannabis is not a niche anymore. It’s competing for the same consumer as some of the biggest names in consumer packaged goods and beverage alcohol.
And these companies are paying attention. Many are starting to invest in alternatives to alcohol, in some cases alongside live entertainment partners, which signals where the consumer is going. Green Thumb Indus has the right brands, the cash flow, and the balance sheet to weather the regulatory uncertainty in the near and medium term. And that means we can be patient as we build these brands for the long run. On the capital allocation front, we continue to weigh three uses: growth capex as new state markets open up, M&A, and buybacks. In September, our board authorized a new $50 million share repurchase program. Since Q4 2023, we returned more than $200 million to shareholders, purchasing about 29.5 million shares, or roughly 13% of the company, at an average price of about $7 per share. Going forward, we’ll continue watching for opportunities and, when the time is right, choose whichever creates the most long-term value for our shareholders.
One balance sheet note before I wrap up: on October 10, 2026, we began consolidating RYTHM Inc. into Green Thumb Indus financial statements rather than using equity method accounting. This was triggered by the removal of the cap on converting our RYTHM notes and warrants, which requires consolidation under accounting rules. To be clear, we didn’t buy any shares or convert any of our derivative securities. Our current ownership has not changed and we currently have no plans to convert.
To close, regardless of federal policy, our business has real value that the market is not fully recognizing yet. Federal clarity should help unlock that, first by changing how investors view the industry, then through growth. But until then, we’ll keep growing the business, investing in our team, returning capital to shareholders when it makes sense, and moving decisively when opportunities come. Before I hand it over to Anthony, I want to thank our team, many of whom are listening right now.
We would not be where we are today without all of you. So thank you. With that, I’ll hand it over to Anthony.
Anthony Georgiadis (President)
Thanks, Ben. As you just heard, Q3 was a strong quarter for Green Thumb Indus. We delivered solid top-line growth, held operating margins, generated significant cash flow, and extended our leadership positions across our brand portfolio where we hold the number one market position in key markets including Illinois, Maryland, and New Jersey. Let me walk through what drove the results, starting with retail. Revenue grew 10% year over year, led by Minnesota where adult-use sales launched last September, with continued growth in Florida, Ohio, Virginia, and Illinois, the latter aided by M&A completed earlier this year.
Same-store sales across our base of 108 stores grew 3%, our first positive comp since the third quarter of 2024, and a strong improvement from the 1% decline we reported last quarter in Florida. Despite persistent competition and pricing pressure, we materially improved four-wall economics across the platform, led by the strength of our products and overall consumer value proposition, wider product assortment at retail, and continued operating discipline.
The net effect was strong sales that allowed for nice operating leverage through the P&L. In CPG, gross revenue grew 16% year over year, driven by Minnesota and continued growth in Illinois, New Jersey, New York, and Ohio, partially offset by price compression and competition in several markets. In addition to the revenue growth, we remain extremely encouraged by our underlying brand and portfolio product performance along with the progress we have made commercializing new, innovative products that should continue to provide momentum to the business.
On capital deployment, we continue to grow our retail footprint, opening six new RISE dispensaries in the quarter—two in Florida via Port Charlotte and Port St. Lucie, one in Sparks, Nevada, and three in Pennsylvania in Hanover, West Mifflin, and Allentown. Subsequent to quarter end, we opened three more stores in Florida, bringing our total Florida footprint to 27 dispensaries and our national portfolio to more than 130 stores. Capex was 20 million for the quarter, and we continue to anticipate full-year 2026 capex of approximately 80 million excluding real estate purchases.
Operating cash flow continues to fund our organic growth initiatives. Looking ahead, Virginia and Texas are our two most important state-level catalysts. In Virginia, adult-use sales are scheduled to begin July 1, 2027. We are one of only five licensed operators in the state with six RISE dispensaries and two cultivation facilities. Applying lessons from our recent adult-use launches in Minnesota, Maryland, and Ohio, we are preparing every part of the business for a step change in demand. Virginia has nearly 9 million residents and borders North Carolina, Kentucky, and Tennessee.
Whereas legal access remains limited in Texas, we continue to make progress under our conditional license in the Compassionate Use Program. We recently purchased a facility that will act as our primary wholesale hub and actively have our real estate team hard at work identifying potential retail sites. While we intend to enter this market in a meaningful way, clarity on hemp and federal policy will help influence the pace of our capex dollars and team investment.
On the macro front, the environment is largely unchanged from last quarter, with federal regulatory uncertainty, price compression, and a stretched consumer remaining near-term headwinds. We’re confident that our team, brands, operating discipline, and balance sheet position us to navigate these headwinds, and we continue to invest selectively where returns are most attractive. As we noted last quarter, our investments in the team weigh on near-term margins, but we view them as among the highest-return investments we make.
With that, I’ll turn the call over to Matt.
Matt Faulkner (Chief Financial Officer)
Thanks, Anthony, and hello everyone. From a top-line perspective, revenue increased 11% year over year, driven primarily by adult-use retail sales in Minnesota and continued growth in existing markets, partially offset by price compression and increased competition in select markets. On a sequential basis, revenue grew approximately 6% from the second quarter. Looking forward, we expect fourth-quarter sequential revenue to be flat to down slightly due to the pricing environment.
As Ben mentioned, our fourth-quarter results will include Rythm on a consolidated basis beginning October 10th. Gross profit for the third quarter was $147 million, or 45% of revenue, compared to $144 million, or 49% of revenue, year over year. The decrease in gross margin was driven by $15.8 million of brand licensing fees incurred in the current period. On a normalized basis, margin saw a slight improvement over last year. Turning to opex, selling, general and administrative expenses for the third quarter were $122 million, or 38% of revenue, compared to $107 million, or 37% of revenue, for the third quarter last year. The increase in total expenses was primarily attributable to overall compensation and benefit costs along with increased costs associated with the opening, acquiring, and operation of retail stores. SG&A excluding depreciation, amortization, one-time transaction costs, and stock-based compensation, which we refer to as normalized operating costs, approximated $88 million compared to $75 million in the third quarter of last year.
This increase was mainly driven by the 22 incremental retail stores. Our normalized EBITDA of $89.4 million, or 27.6%, was up from $80.2 million, or 27.5%, last year. On the bottom line, we reported a GAAP net loss of $4.8 million, or $0.02 per basic and diluted share. This compares to net income of $23.3 million, or $0.10 per share, in the prior year. The prior-year period included a $42 million gain on sale of intellectual property. Income tax expense was $28 million compared to $49 million in the prior year, primarily reflecting the end of 280E for portions of our business following the reclassification of state-legal and medical cannabis to Schedule 3 on taxes.
More broadly, timing matters—the delay of full rescheduling and 280E relief could mean the continuation of significant tax liabilities. Clarity on 280E would be meaningful not only for Green Thumb Indus but for the entire industry. We remain committed to maintaining financial flexibility so we can invest opportunistically in growth while managing risk. With that, I’ll turn the call over to the operator for questions.
OPERATOR
Thank you. We will now begin the question-and-answer session. If you have dialed in and would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star one again. If you are called upon to ask your question and are listening by a loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question.
And your first question comes from the line of Aaron Gray with Alliance Global Partners. Your line is now open.
Aaron Gray (Analyst)
Hi, good evening. Congrats on the quarter and thank you very much for the questions. So first question for me—just early days post yesterday’s election, but curious, given the change in governorship in Texas, has an impact on your outlook for a more favorable market and how aggressive you might be in the medical market as you await your final license there? Thanks.
Anthony Georgiadis (President)
Yeah, Aaron, this is Anthony. I’ll take that one—really good question. You know what, I’ll tell you, dust is still settling. We’re still kind of digesting yesterday’s results. But heading into yesterday, the things that we were watching closely was hemp as well as rescheduling overall. You know, what we’ve been doing in parallel is working to operationalize the business. In my prepared remarks, I talked about the facility that we just recently purchased outside of the Fort Worth area.
And, you know, at the same time, the results of last night certainly could have an impact on the TCUP program. I think we’re all surprised by the clean sweep. So, you know, it’s unclear at this point. I’d say we’ve got some work to do to kind of figure out if there is going to be an impact on the program itself. We hope, if so, it will be to the positive extent. But I’ll just say, look, we’re looking forward to kind of helping the new administration get this program really off the ground in a meaningful way and look to be a valuable partner to them in doing so.
Aaron Gray (Analyst)
Okay, great. Appreciate that color. Second question for me—I know we’ve asked this a couple times. I wanted to ask again, just given where we are with your healthy cash position and balance sheet, how are you thinking today in terms of prioritizing capital allocation between capex, M&A, and shareholder returns?
Ben Kovler (Founder, CEO and Chairman)
Yeah, I’ll take it, Aaron, thanks. Good question, and something we talk about and think about all the time. In a lot of uncertainty, we tend to be a little more cautious. So M&A deals have to look a lot better. We have to understand the tax picture of what’s going on out there even more clearly. And as things pop up in the business, that becomes a great place where we understand the markets and we understand what’s going on. So whether it’s Virginia, Texas, Florida, other places, we can feel very confident putting our capital there.
So we feel fortunate with the balance sheet we have. We’re in no rush to do anything too intense. And we like the returns where we’re putting the capital, we like the business we’re building. And as soon as we can have some clarity on things to happen, we’re ready to really pounce into where there’s an opportunity. You look—just zooming out at the country—you’re at 30 to 40 billion dollars base, maybe use hemp as a bigger hire at 50 billion. You know, we’re 2 to 5% of the industry, and the leaders in any industry of this kind of size, with this kind of consumer reach and these sorts of brands, should be far larger. And so that’s the future we see, and, you know, the exact path and when and how remains to be seen and how the multiples work and what happens in the industry.
But the brands are working and a lot of consumers are coming online. Hemp policy might go our way, and that puts us in a pretty optimal spot.
Aaron Gray (Analyst)
Okay, great. Appreciate that color. I’ll jump back in the queue.
OPERATOR
Sure. Thanks, Aaron. Your next question comes from the line of Kenric Tyghe with Canaccord Genuity. Your line is now open.
Kenric Tyghe (Analyst)
Thank you and good evening. Just encouraged by your comments on Virginia and obviously understand how well positioned you are in the state in sort of absolute relative terms. But could you speak to just how short biomass at launch that market is going to be, and what are your thoughts on the evolution of supply until we’re in a more balanced market in Virginia? Certainly a number of your peers have been calling out a multi-year biomass shortage for the broader market.
Anthony Georgiadis (President)
Sure. This is Anthony, I’ll take that question as well. So look, it’s really hard to predict. Obviously with the five incumbents there is some capacity in the state. I think that all of us have excess capacity that either has yet to be turned on or will be turned on shortly. But look, the rate of capital deployment in the state is really kind of to be determined. We experienced this kind of similar issue in Minnesota and I’ll tell you that it certainly had an impact on the market whereby it just slowed down the rate of conversion from either hemp or the illegal market into the state-regulated side.
So it might just prolong the inevitable consumer acceptance within the state due to the product shortage. I’ll say for us, Green Thumb Indus really just focused on what we can control. You know, we’ve made pretty substantial investments into the state that really predate this year. You know, we expected kind of adult use to really come to the state probably a little bit sooner than next summer. And so those are investments that we’ve made. And we’re excited to turn on the facilities and see what the team can do. But it is a question that we’re asking ourselves.
We’re going to try to play our part and do what we can, but our guess is that it could take anywhere from 12 to 24 to maybe 36 months before there’s enough capacity in the state to absorb the potential demand that we anticipate. Yeah, I think it, you know, you really have to bifurcate the business. So on the retail side, there have been a number of stores that continue to open up and operationalize in the state. So that has certainly put pressure on our retail business. At the same time, that’s really where our wholesale business starts to play a larger role within the market. And that’s what we’ve seen as we’re heading into the early part of next year.
What we have not seen is the full impact from the outdoor harvests that have taken place recently, with that product continuing to be converted into mostly the MIP categories that we see. And for us, look, it’s all about a few simple things. Number one, we focus on our brands, we focus on the quality of our flower, because that really is still the tip of our spear from a competition standpoint. And so at this point, we’re pretty excited about being able to supply these new stores with our brand, start to build that business in a meaningful manner, and really expand our reach across the state where, up to this point, we’ve been kind of limited to the eight stores that we currently operate. So we’re excited about the future there. But I do think that the business will shift and become more wholesale-focused than retail-focused as it has been in the last 12 months.
OPERATOR
Next question comes from the line of Brenna Cunnington with ATB Cormar Capital Market. Your line is now open.
Brenna Cunnington (Analyst)
Hi. Thanks for taking our questions and congrats on the results. So looking into Q2 and 2027, just given the layering of seasonality with organic growth in certain states being offset by pricing pressures and some hemp operators starting to flood market, how should we be thinking about margin going forward, specifically Q4 into 2027?
Matt Faulkner (Chief Financial Officer)
Sure, I can take that. This is Matt. So, with the pricing pressures, there’s some pockets of stabilization, but there’s still plenty of pockets of erosion that’s out there. So it’s hard to predict what it’s going to look like going forward. We do expect some continued compression that is going to happen in the coming quarters, but one of the tailwinds that could be there is hemp, and what role hemp is going to play or not play in the bigger picture.
And we’re just not sure how that’s going to play out at this point in time.
Brenna Cunnington (Analyst)
Okay, understood. And then the pace of GTI’s retail expansion, it’s seen quite an uptick in the past year. Could you just provide some color on what we should be thinking for retail expansion near term and which states might be focused?
Anthony Georgiadis (President)
Yeah, Brenna, this is Anthony. So, yeah, look, we have some nice momentum here. We have a number of stores in Florida opening up between now and the end of the year, anywhere between three and five. And as we look ahead to next year, the states where we anticipate opening up additional stores: Florida for sure—I would say 10 plus there. Ohio, we have a select few number of stores that we still would like to operationalize, so one or two there. And then really Texas.
And Texas is the big unknown at this point. I will tell you that we are putting the wheels in motion and getting the team ready to really step on the gas there if we need to. So that’s really the unknown that’s difficult to predict just given the nascency of that market itself. But those are really the places where we’re focusing our retail efforts as we look ahead to the next, call it, 12 to 16 months.
Brenna Cunnington (Analyst)
Perfect. Thanks so much. I’ll jump back in the queue.
OPERATOR
Your next question comes from the line of Pablo Zuanic with Zuanic and Associates. Your line is now open.
Pablo Zuanic (Analyst)
Thank you and good afternoon, everyone. Ben, based on the election yesterday, does that have any impact on the rescheduling of rec, in your opinion? Obviously, there’s no change in president; same DOJ, same DEA. Someone would think there’s no impact, right? I mean, Judge Julius aside, if you have a view on that. And then the second question is more important. I know you said that listing is not enough. You need federal certainty on taxes especially. But I could make the argument that even though you say that rescheduling is not enough, Trulieve is benefiting from the Arab listing and NYSE—more investors, institutions are owning the stock. It’s going into various S&P indexes and so on. So how long do you wait before you just decide to bifurcate the business and up-list the medical business?
Thank you.
Ben Kovler (Founder, CEO and Chairman)
Thanks, Pablo. Good questions. First one first, the short answer is no view. The judge is doing his thing. The stays have gotten shorter and it’s due tomorrow, I believe, and we would think, like everybody else—the consensus essentially—that his recommendation will come out and the Department of Justice and Blanche will act quickly and promptly. But I don’t have any special insight on that. Obviously, we believe it should be rescheduled. In terms of the second question, remind me what the second question was.
Pablo Zuanic (Analyst)
Up listing.
Ben Kovler (Founder, CEO and Chairman)
The up listing. Timing. I mean, look, it’s not a, how long will we wait before bifurcating the business—which is what you said at the end—which is a shorter answer, which is we’re not interested in bifurcating the business. It creates a number of complications in terms of how we run the business, in terms of people, audit. So we’re not sitting in the wings waiting to do that at the moment, though obviously we’ve evaluated it. We spent a lot of time and energy on understanding what that would be.
But at the same time, we need the clarity to have the right story and the right momentum into it for a listing and figuring out the buyers. This industry has no buyers. There’s no institutional investors circling. Nobody’s asking any interesting questions, nobody’s really calling. And you’ve seen that happen with the multiple. And if listing and just the medical business produced the double multiple of where we are, that would be a catalyst to reevaluate the first part of what I said.
But we haven’t really seen that. You’ve seen four or five times, six times EBITDA multiples on these businesses. So we’re interested in maximizing value for shareholders, figuring out what that means and how to do it. And that’ll be really the number one objective—finding the right buyers for the company given its earnings profile, cash flow and future growth. And we think the future growth in these brands for the American consumer is massive. We got a teeny taste of it in the hemp where we could play without the handcuffs on, and we know it works. Take a look at what’s going on at Total Wine.
Take a look at what’s happening at some of the nation’s venues, what’s happening to alcohol sales. And we know THC has a real spot and we’re positioning ourselves to take advantage of that when that happens—when, what we list, and when—TBD. And we also have obviously the significant strategic investment in Rhythm, Rhythm Inc., RYM listed on the NASDAQ, owns the brands and has a lot of optionality about how to play. So, standing on the quicksand of the industry with the constant change, looking at our cash, watching what’s out there, but not feeling in a rush that we need to do much, and especially not that split to return back to the adult use. Medical works great if you have a medical business and that’s what you have. But for what we have and how we run it provides a lot of disruption for what we understand today.
Pablo Zuanic (Analyst)
Thank you. That’s very good color and already clear. But, I mean, not to push back, but you don’t think that Trulieve has a strategic advantage over you right now by being able to list on the NYSE? And the longer that it takes to get rescheduled the bigger advantage for them, or do you disagree with that view?
Ben Kovler (Founder, CEO and Chairman)
It’s a different business. I mean, a lot of respect for what she’s built, a lot of respect for what’s happening in Florida and Georgia and Texas. But that is a different business than what we have. And the multiple, as I look at it, I think we’re trading roughly 4 to 5 and she’s roughly 5 to 6. Another operator in the space has a much bigger multiple. That is puzzling in a different kind of way. But again, if a medical business traded at 15 times EBITDA on the New York Stock Exchange, we’d be thinking about this very differently.
We obviously are very flexible and we can move very fast. We’ve met with all the exchanges. We’re having all the conversations. We understand what’s needed. It’s a big leap on the audit to have two separate companies when you have one company. So you can’t take that as just a, hey, we would deconsolidate and then we go. You can’t run it in the same way if you’re going to run it compliantly. And so that’s a complicated venture. If your business is what ours is, if it’s 90% one thing, it’s a little bit easier.
Pablo Zuanic (Analyst)
Thank you. That’s great color. Thank you.
OPERATOR
Thank you again. If you would like to ask a question, please press Star one on your telephone keypad. Your next question comes from the line of Bill Kirk with Roth Capital. Your line is now open.
Nick (Analyst)
Hey, this is Nick on for Bill. Thanks for taking the questions. First for me, just on the beverage side, have you seen any pantry loading or heightened sales or marketing activity ahead of the potential hemp ban? And has there been any notable changes in behavior at the retailer or distributor level yet? Thank you.
Ben Kovler (Founder, CEO and Chairman)
Yeah, hey, Nick, it’s Ben. I’ll take it. Short answer is yes, a lot. Tons. The American consumer does not understand that this product is going away. And as they do, shelves are empty, distributors are hesitant to restock because it’s going to be out. Retailers want to sell a lot of it. And it’s a pretty interesting situation. You’re seeing a category that’s 10 plus percent of sales in a Liquor store going away. And so there’s been a lot of chatter online of pantry stocking. We’ve got promotions going for large quantity purchases within rules and within regulations for people to pantry load or garage load. This is a product that has a real place in people’s lives and so moving consumers to the dispensary in the immediate, you know, the short term will be part of it. And yes, we’ve seen retailers act. We’ve seen distributors act for sure.
Anthony Georgiadis (President)
Sure. This is Anthony. I’ll take that. You know, look, we’re going to have to see, you know, we know that adult use has been historically held up in the state. The governor is certainly supportive. I think it’s a little preliminary to start kind of, you know, thinking about kind of immediate next steps. We’re going to have to digest as a group, huddle up with some of the other operators in the state and kind of work together to figure out if there’s a path here for adult use in the market.
OPERATOR
That concludes the question and answer session. I will now turn the call back over to Mr. Ben Kovler, chairman and CEO, for closing remarks.
Ben Kovler (Founder, CEO and Chairman)
Thanks everybody for joining us. We’ll be back to you with the year end results early in 2027 and it should be a pretty interesting 120 days till then. So thank you,
OPERATOR
Ladies and gentlemen. That concludes today’s call. Thank you all for joining. You may now disconnect.
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