OTC:GTBIF
Green Thumb Industries Inc.
A vertically integrated cannabis manufacturer expanding its footprint across key US states with robust cash flow generation.
Key Metrics
Investment Thesis
Bull Case
Investors may favor GTBIF due to its consistent double-digit revenue growth trajectory and improving profitability margins as operational leverage kicks in. The company's strategic acquisition activity and heavy reinvestment suggest long-term expansion potential in an industry with significant remaining growth headroom. Strong free cash flow generation supports dividend potential or further share buybacks if policy conditions stabilize.
Bear Case
The high concentration of operations in a single, federally illegal industry exposes shareholders to existential regulatory risks that could instantly render assets worthless. Elevated accounts payable and accrued expenses relative to current assets suggest working capital management challenges typical of cash-constrained industries. Persistent heavy capital expenditures without corresponding immediate profit acceleration may deter value-oriented investors concerned about return on invested capital.
About Green Thumb Industries Inc.
Green Thumb Industries Inc. (GTBIF) is a leading producer of cannabis-infused products operating primarily in New York and Florida markets. The company leverages its vertically integrated model to manufacture flower, concentrates, edibles, and topicals for retail dispensaries. With revenue reaching $1.18 billion in 2025, the firm demonstrates strong scaling capabilities within the legalized US cannabis sector.
Analysis
Management Discussion
The company reported net income of $114.2 million in 2025, representing a substantial increase from $73.1 million the prior year driven by revenue growth to $1.18 billion. Operating cash flow of nearly $295 million provides ample liquidity to fund its $130 million in capital investments and acquisitions while maintaining a healthy balance sheet with $274 million in cash equivalents.
Industry Overview
The US cannabis industry is a high-growth sector driven by the ongoing legalization process across multiple states, creating substantial opportunities for compliant manufacturers and distributors. Market dynamics are characterized by rapid consolidation as larger players acquire smaller operators to achieve economies of scale and market dominance. Success in this sector increasingly depends on regulatory compliance, product quality differentiation, and efficient supply chain management.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $1.02B | $1.05B | $1.14B | $1.18B |
| Cost of Revenue | $513.4M | $528.1M | $536.0M | $600.4M |
| Gross Profit | $504.0M | $526.5M | $601.1M | $574.9M |
| Operating Expenses | $382.9M | $341.9M | $376.7M | $437.2M |
| Operating Income | $121.1M | $184.6M | $224.4M | $137.7M |
| G&A | $294.4M | $341.9M | $376.7M | $437.2M |
| Stock-Based Comp | $27.1M | $28.2M | $33.3M | $44.9M |
| D&A | $96.7M | $100.8M | $113.2M | $145.4M |
| Depreciation | $37.0M | $49.9M | $62.8M | $95.5M |
| Amortization | $59.7M | $50.8M | $50.4M | $49.9M |
| Other OpEx | $88.5M | $0 | $0 | $0 |
| Non-Operating Income | $-12.6M | $-28.6M | $-24.3M | $125.7M |
| Interest Expense | $21.2M | $19.1M | — | — |
| Interest Income | $4.1M | $6.7M | $9.1M | $11.4M |
| Pre-Tax Income | $108.4M | $156.0M | $200.1M | $263.4M |
| Income Tax | $94.8M | $118.6M | $126.3M | $147.3M |
| Continuing Ops | $13.7M | $37.4M | $73.9M | $116.1M |
| Discontinued Ops | $-1.7M | $-1.2M | $-768.0K | $-1.9M |
| Net Income | $12.0M | $36.3M | $73.1M | $114.2M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $12.0M | $36.3M | $73.1M | $114.2M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $351.4M | $342.8M | $403.9M | $577.2M |
| Cash & Equivalents | — | — | — | $274.3M |
| Accounts Receivable | $31.0M | $43.0M | $52.8M | $51.3M |
| Inventory | $115.7M | $113.0M | $147.2M | $158.3M |
| Other Current Assets | $204.7M | $186.8M | $203.9M | $93.3M |
| Long-Term Assets | $2.08B | $2.15B | $2.13B | $2.21B |
| PP&E (Net) | $557.9M | $687.1M | $716.0M | $690.9M |
| Intangibles | $589.5M | $538.7M | $488.3M | $436.7M |
| Goodwill | $589.7M | $589.7M | $589.7M | $592.2M |
| Operating Leases | $242.4M | $238.4M | $246.3M | $239.7M |
| LT Investments | $74.2M | $64.4M | $43.6M | $32.7M |
| Other LT Assets | $28.6M | $29.1M | $49.3M | $220.8M |
| Total Assets | $2.43B | $2.49B | $2.54B | $2.79B |
| Current Liabilities | $146.6M | $126.0M | $165.0M | $177.3M |
| Accounts Payable | $18.4M | $24.5M | $24.8M | $24.6M |
| Current Leases | $10.9M | $12.3M | $14.3M | $18.4M |
| Taxes Payable | $4.4M | $10.7M | $2.3M | $0 |
| Other Current Liab | $25.9M | $19.0M | $37.4M | $45.9M |
| Long-Term Liabilities | $621.5M | $660.8M | $583.0M | $702.1M |
| LT Operating Leases | $249.3M | $249.5M | $261.4M | $255.1M |
| Other LT Liab | $372.2M | $411.3M | $321.5M | $447.0M |
| Total Liabilities | $768.1M | $786.8M | $747.9M | $879.4M |
| Shareholders' Equity | $1.67B | $1.70B | $1.79B | $1.91B |
| Total L&E | $2.43B | $2.49B | $2.54B | $2.79B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $12.0M | $36.3M | $73.1M | $114.2M |
| Non-Cash Adjustments | $133.4M | $165.7M | $109.5M | $206.2M |
| Working Capital Changes | $13.2M | $23.0M | $12.6M | $-25.4M |
| Cash from Operations | $158.6M | $225.0M | $195.2M | $294.9M |
| Capital Expenditures | $179.5M | $220.0M | $80.2M | $81.1M |
| Cash from Investing | $-219.9M | $-227.9M | $-89.5M | $-130.4M |
| Cash from Financing | $8.6M | $-13.1M | $-95.6M | $-50.9M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $-52.7M | $-16.0M | $10.1M | $113.6M |
| Beginning Cash | $230.4M | $177.7M | $161.6M | $171.7M |
| Ending Cash | $177.7M | $161.6M | $171.7M | $274.3M |
Frequently Asked Questions
How does Green Thumb Industries Inc. make money?
The company generates revenue through four primary streams: cannabis flower and pre-rolls, concentrates and vapes, edibles and tinctures, and topicals including lotions and balms, all sold exclusively to retail dispensary partners in regulated markets.
What are the main risks for GTBIF?
Regulatory uncertainty remains a primary risk as the company operates only in states where cannabis is legally permitted, facing potential legislative changes at federal or state levels. Intense price competition among numerous players could compress gross margins given the low barrier to entry in some regions. High capital expenditure requirements of over $80 million annually pose liquidity risks if market growth slows.
What is GTBIF's competitive advantage?
Green Thumb benefits from a vertically integrated supply chain that controls cultivation, processing, and distribution, ensuring quality consistency and cost efficiency. Its significant capital expenditures in 2025 indicate active capacity expansion to meet growing demand. Strong brand recognition and established relationships with major dispensary chains provide market stability.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.