Vext Revenue Hits Record as Inventory Sell-Through Squeezes Margins

Vext Science, a cannabis retailer operating in Ohio and Arizona, reported record third-quarter revenue of $14.9 million on November 3, 2026, but a $4.9 million net loss and sharply lower adjusted earnings tempered the sales milestone. The quarterly earnings release covers the period ended September 30, 2026, and reports figures in U.S. dollars.

Revenue increased 23% from $12.1 million in the second quarter and 18% from $12.7 million in the third quarter of 2025. Adjusted EBITDA, Vext’s company-defined operating measure before interest and tax that also excludes depreciation, amortization and specified non-cash and non-recurring items, fell to $195,000 from $3.4 million in the second quarter. Its margin dropped to 1.3% from 28.3%, showing that additional sales came with much weaker adjusted profitability.

Cash generation moved in the opposite direction. Net cash provided by operating activities reached $2.4 million, double the second quarter, and Vext’s cash flow margin rose to 16% from 10% in both comparison periods. The company calculates that margin by dividing operating cash flow by revenue. The result was stronger cash generation alongside a much smaller adjusted earnings contribution from record sales.

Ohio Drives Growth

Ohio generated $10.9 million of revenue, which Vext reported as 37% higher than a year earlier. The Fairfield dispensary’s first full quarter supplied most of the sequential growth in Ohio retail sales, while company-grown flower lifted wholesale revenue. In Arizona, dispensary sales rose 7.6% from the second quarter, the first increase after five quarterly declines, as purchased flower lowered shelf prices. Vext also sold its last Arizona cultivation inventory during the quarter.

Chief Executive Eric Offenberger attributed the margin pressure to a deliberate production slowdown and the sale of inventory built in the first half of 2026. “Selling it through weighed on margin this quarter, as did the temporary closure of our Jackson dispensary and the Vapen hold in September,” he said.

The Jackson dispensary was closed from September 1 through September 17, 2026, at the Ohio Division of Cannabis Control’s request. Vext voluntarily quarantined Vapen-branded products on September 1, and the division placed them on administrative hold from September 2 until October 14, 2026, before releasing the hold based on testing data and analysis. Offenberger said some effects would carry into the fourth quarter as operations normalize after the hold and the Phoenix operation is scaled back.

Capital Shifts Toward Ohio

Vext’s property and financing decisions accompanied the operational changes. In August 2026, it acquired the Jackson cultivation and manufacturing property for $6.0 million, replacing a lease through a refinancing of existing loans at a fixed 8.64% rate. On October 1, 2026, it replaced $4.1 million of App Pharm seller notes originally due December 31, 2026, with unsecured notes maturing January 15, 2029. In October 2026, Vext listed its Phoenix manufacturing property for sale, began reducing Arizona manufacturing to packaging for its own dispensaries, and began closing its Kentucky CBD operation.

The expansion pipeline remains in Ohio. Construction is underway on the seventh dispensary in Columbus, targeted for the first quarter of 2027. Vext agreed on October 15, 2026, to buy the land for $1.0 million, with closing expected in November 2026. On October 28, 2026, the division issued a provisional dual-use license for an eighth dispensary in Amelia, which Vext expects to open by the end of the third quarter of 2027 subject to regulatory approvals.

Vext finished the quarter with record sales and stronger cash generation, but thinner adjusted earnings and unfinished operational changes. The central question is whether normalizing Ohio operations can rebuild adjusted profitability while Vext scales back Arizona manufacturing, closes its Kentucky CBD operation and pursues two more Ohio stores.