Trulieve Returns to Quarterly Profit as Revenue Declines

Trulieve Cannabis Corp. announced its third-quarter results on November 5, 2026, reporting $230.2 million in revenue and a return to a small GAAP profit despite lower sales, with wider gross margins and reduced expenses supporting operating results.

Revenue for the quarter ended September 30, 2026, fell from $288.2 million a year earlier and $271 million in the second quarter of 2026, declines of 20% and 15%, respectively. Retail sales supplied 95% of third-quarter revenue.

Gross profit decreased to $148.0 million from $169.9 million, but gross margin increased to 64% from 59% a year earlier and 60% in the prior quarter. The higher margin limited the decline in gross profit relative to the drop in sales.

Those comparisons carry an important qualification. The third quarter includes only Trulieve medical operations, while prior periods include consolidated Harvest mixed medical and adult-use operations. Second-quarter results reflect Harvest’s deconsolidation on June 3, 2026, so the percentage changes also reflect a changed reporting perimeter rather than operating performance alone.

Lower Costs Support a Slim Profit

Total expenses fell to $105.5 million from $127.6 million. Selling, general and administrative expense declined to $87.8 million from $99.0 million, while depreciation and amortization dropped to $17.7 million from $29.5 million. Those reductions kept income from operations nearly unchanged at $42.5 million, compared with $42.2 million a year earlier, despite the lower gross profit.

Below the operating line, Trulieve recorded $12.0 million of net interest expense and a $6.4 million equity share of Harvest’s net loss. Pretax income was $27.0 million against a $26.3 million tax provision. Net income attributable to common shareholders was $0.9 million, compared with losses of $26.8 million a year earlier and $406.0 million in the second quarter. The second-quarter reconciliation includes a $403.3 million loss on the Harvest deconsolidation, explaining the scale of that quarter’s bottom-line loss.

Trulieve reported adjusted EBITDA of $89.2 million, down from $102.7 million a year earlier, while the margin on that measure rose to 39% from 36%. Adjusted EBITDA is a company-defined earnings measure that excludes interest, taxes, depreciation and amortization and additional items including transaction costs, share-based compensation and Harvest-related losses.

Cash Generation Meets Higher Spending

Third-quarter operating cash flow was nearly unchanged at $74.4 million, versus $76.4 million a year earlier, while capital expenditures rose to $29.0 million from $16.6 million. Free cash flow, which Trulieve defines as operating cash flow less capital expenditures, was $45.4 million, down from $59.8 million but above the second quarter’s $32.1 million. The year-over-year decline therefore reflects higher capital spending alongside broadly stable operating cash generation.

For the first nine months of 2026, operating cash flow totaled $183.3 million and free cash flow reached $119.8 million, compared with $213.6 million and $160.2 million, respectively, in the prior-year period. Cash generation remained substantial but was lower across both measures.

Expansion Becomes the Next Test

Trulieve operates 208 retail dispensaries and 3.5 million square feet of cultivation and processing capacity in the United States. It opened dispensaries in Marco Island, Florida, and Dunwoody, Georgia, during the quarter. Trulieve reported a sevenfold increase in Georgia traffic following the state’s July 1, 2026, medical cannabis program expansion, alongside product launches including Modern Flower and Roll One.

The company also closed a perpetual, royalty-free license for Alien Labs and Connected branded products in Florida and Texas. The agreement covers genetics, trademarks and proprietary know-how and includes a right of first refusal for exclusive licensing rights in additional expansion markets.

Chief executive Kim Rivers pointed to Georgia and Texas in her growth assessment: “With meaningful growth expansion opportunities in Georgia and Texas, we are in the early stages of an accelerated growth cycle.”

The quarter establishes a clear operational test. Trulieve preserved operating income and improved margins on a smaller reporting base, but revenue, adjusted EBITDA and nine-month cash flow remained lower. Whether the expansion opportunities Rivers identified can restore sales growth without eroding those margins is the central question for subsequent results.