Vext Q2 Revenue Holds at $12.1M as Ohio Retail Absorbs Arizona Exit

Vext Science closed the books on the quarter its two-state strategy was built around. The company reported revenue of $12.1 million for the period ended June 30, 2026, essentially flat against the first quarter, as growth at its Ohio dispensaries absorbed the planned shutdown of its Arizona cultivation operation. Adjusted EBITDA reached $3.4 million, up 22% from the first quarter, and the net loss narrowed 79% year-over-year to $315,000.

The results, released August 20, 2026, mark the first full look at the pivot Vext laid out in March: stop growing cannabis in Arizona, where wholesale flower sells below the cost of producing it, and push that capital into Ohio retail, where the company is building toward the state’s eight-dispensary ownership cap. The quarter contained both ends of that trade. The final harvest came off the Eloy, Arizona facility in May, and the Fairfield dispensary, Vext’s sixth in Ohio, opened in June.

CEO Eric Offenberger framed the quarter as the plan executing on schedule. “The last Eloy harvest came off in May, Fairfield opened in June, and the bottom line moved to essentially breakeven,” he said in the earnings announcement. “We took capital out of Arizona cultivation because the returns no longer cleared our hurdle, and we are redeploying it to Ohio retail, where incremental invested capital earns the highest return available to us.”

Operating cash flow came in at $1.2 million, down from $1.6 million in the first quarter, a decline Offenberger attributed to timing rather than trend: the company deliberately built inventory in Ohio ahead of expected second-half growth from Fairfield and its existing store base.

The Numbers Behind the Pivot

• Sales: $12.1 million in Q2 2026, versus $12.2 million in Q1 2026 and $13.4 million in Q2 2025
• Adjusted EBITDA: $3.4 million, a 28.3% margin, up from $2.8 million and 23.1% in Q1 2026
• Net loss: $315,000, versus $1.5 million in Q2 2025
• Retail revenue: $10.7 million, essentially unchanged from $10.8 million a year earlier
• Wholesale revenue: $1.4 million, down from $2.6 million in Q2 2025 as Arizona cultivation wound down
• Operating cash flow: $1.2 million, a 10% cash flow margin

The year-over-year revenue decline lives almost entirely in that wholesale line. Retail, the business Vext is betting on, held steady through the transition.

One caveat attaches to the sequential comparison. Vext restated its first-quarter Adjusted EBITDA downward to $2.8 million from the $3.6 million originally reported, after refining its reconciliation to correct the sign treatment of a fair-value change in debt. The revision touches only the non-IFRS measures; reported revenue, gross profit, and net loss are unchanged. The “second consecutive quarter” of Adjusted EBITDA growth the company touts is measured against that restated figure.

How the Two-State Strategy Got Here

The Q2 results cap a sequence Vext has been telegraphing for months. On March 3, 2026, the company secured a provisional dual-use license from the Ohio Division of Cannabis Control for a second Columbus dispensary, its seventh in the state, under the regulator’s 10(B) program that lets Tier I cultivators develop additional storefronts. Weeks later, on March 30, 2026, Vext announced the Eloy exit, citing statewide oversupply and a roughly 9% decline in Arizona cannabis sales during 2025, and said equipment from the facility would move to Ohio, saving approximately $2 million in capital spending on a planned expansion of its Jackson cultivation site.

First-quarter results in May 2026 showed the strategy working before the wind-down even finished: Ohio revenue rose 34% year-over-year to $8.2 million across five stores. The Fairfield opening followed on June 1, 2026, a roughly 3,825-square-foot store off Route 4 in a northern Cincinnati suburb, adjacent to Jungle Jim’s International Market.

The pricing lever did the rest. After Vext sharpened prices in May, its Central Phoenix store posted its highest monthly customer count since October 2023, and its Columbus dispensary hit first-half volume highs. Ohio cultivation yields improved to approximately 101 grams per plant, which matters because Vext stocks its own Ohio shelves: better yields lower shelf costs and fund the retail price position. In Arizona, the Phoenix dispensaries now buy from third-party producers for less than it cost the company to grow.

The Balance Sheet Moves That Followed

Two financing events landed after quarter-end. On August 14, 2026, Vext extended the maturity of its second East West Bank promissory note by six months, to January 15, 2028, on the condition that net proceeds from the Eloy sale go toward partially repaying that facility by January 20, 2027. The Eloy property is now being marketed for sale; the company reports its secured debt represents approximately 50% of the appraised value of its owned real estate.

On August 19, 2026, the company closed approximately $17.0 million in real estate financing with Wright-Patt Credit Union: an $11.0 million term loan with a 10-year term (8.64% fixed for five years, then resetting at the 5-year U.S. Treasury rate plus 4.25%) and a $6.0 million term loan with a 7-year term at 8.64% fixed for its term, both secured by the Jackson, Ohio cultivation and manufacturing facility. The proceeds refinanced about $10.3 million of existing credit union debt, bought the roughly 50-acre Jackson property outright for $6.0 million, and funded continued Ohio expansion. Vext now owns 100% of the entity holding the site of its Ohio cultivation and manufacturing operations.

What Vext Has Scheduled Next

The company’s stated milestones now run on public dates. The Columbus dispensary, its seventh, is expected to open by Q1 2027 under a provisional license granted in March 2026, with total capital costs projected at approximately $3.3 million including land and construction. Vext says it remains on track to reach Ohio’s eight-store cap in 2027; an eighth location has been identified under the 10(B) program and awaits provisional permits. The Eloy sale carries its own clock through the East West Bank extension condition, with partial repayment due by January 20, 2027.

Hanging over the tax line is a federal development Vext has flagged for two consecutive quarters. The company carries an $11.7 million uncertain tax position liability, up from $8.1 million at the end of 2025, tied to the deductibility of certain costs under the federal cannabis tax penalty. The Drug Enforcement Administration’s final order moving certain state-licensed marijuana products to Schedule III includes a non-binding recommendation on retroactive tax treatment that, if implemented, could materially reduce that liability. No implementing guidance has been issued, and Vext has recognized no benefit from it in the June 30, 2026 statements. For a company generating $3.4 million in quarterly Adjusted EBITDA, the resolution of an $11.7 million tax question is the largest single swing item on its books.