Cresco Labs Posts First Profit, CFO Departs Amid Schedule III Transition

Cresco Labs reported second-quarter 2026 revenue of $173 million and net income of $15 million on August 6, 2026 — against net losses in both the prior quarter and the year-ago quarter — and separately announced that Chief Financial Officer Sharon Schuler is stepping down. Adjusted EBITDA came in at $40 million, a 22.8% margin on revenue. Both figures beat the prior quarter: Q1 2026 revenue was $151 million with a net loss of $17 million.

The Chicago-based multistate operator attributed the swing to net income partly to an income tax benefit of $19 million, a direct consequence of the federal government’s move to reschedule state-licensed medical marijuana to Schedule III. That change removes the Section 280E tax penalty that had blocked cannabis companies from deducting ordinary business expenses. “Removing 280E strengthens net income and balance sheets, and opens a path to U.S. exchange listings and broader capital markets access,” the company said in its earnings release.

Schuler will support the company through the transition. Mark Stortz, Senior Vice President and Corporate Controller, steps in as interim CFO while the board conducts a search.

Schedule III Tax Relief Drives the Bottom Line

The quarter’s $19 million income tax benefit stands out against Q1 2026, when Cresco recorded a $14 million tax expense, and Q2 2025, when it paid $17 million. The reversal reflects the Justice Department’s April 23, 2026 order placing FDA-approved and state-licensed medical marijuana products in Schedule III, effective immediately. MyCannabis covered the December 2025 executive order that set the rescheduling in motion.

Cresco’s revenue grew 15% sequentially, driven by retail expansion. In Pennsylvania, the company completed its first quarter operating nine acquired dispensaries and improved their gross profit dollars by 11% before rebranding them. In Ohio, new Sunnyside locations rank among the state’s highest-performing openings. Kentucky delivered first branded product sales to patients in June 2026.

What the Numbers Show

• Revenue: $173 million, up 15% from $151 million in Q1 2026 and up 6% from $164 million in Q2 2025
• Net income (loss): $15 million, vs. $(17) million in Q1 2026 and $(14) million in Q2 2025
• Adjusted EBITDA: $40 million, a 22.8% margin, vs. $33 million (21.7%) in Q1 2026
• Cash and equivalents: $67 million as of June 30, 2026, down from $91 million at December 31, 2025
• Debt: $311 million senior secured term loan plus a $19 million mortgage loan

The company’s SG&A expenses rose to $63 million, or 36.5% of revenue, from $54 million in Q1. Cresco attributed the increase to one-time costs tied to M&A activity, preparation for a potential U.S. exchange uplisting, and federal reform work. Adjusted SG&A, which strips those items, was $55 million, or 32.0% of revenue.

CFO Transition at a Pivotal Moment

Schuler’s departure lands as Cresco positions itself for the post-280E environment. The company has been open about its intent to pursue a U.S. exchange listing, a move Schedule III makes viable for plant-touching businesses. Her successor will inherit a balance sheet carrying $330 million in debt and a cash position that shrank by $24 million over the first half of 2026, partly due to acquisition spending and capital expenditures.

The interim appointment of Stortz, the company’s corporate controller, keeps financial leadership internal during the search. Cresco’s peers are navigating the same transition: Green Thumb Industries reported Q2 revenue growth of 5% on August 4, 2026, also citing Schedule III tax relief, and Verano Holdings posted its third consecutive quarter of revenue growth a day later, on August 5.

Cresco’s full financial statements are expected to be filed on SEDAR+ and EDGAR on or about August 6, 2026. The company hosted an earnings webcast at 8:30 a.m. Eastern Time on August 6, 2026, with an archived replay available on its investor website for one year.