Grown Rogue Reports Q2 2025 Financial Results

MEDFORD – Grown Rogue International Inc., a flower-focused Cannabis producer known for its craft-driven approach and scaled operations, reported its second quarter 2025 financial results for the period ending June 30, 2025.

The company delivered a 4% increase in pro forma revenue to $8.01 million compared to the same quarter last year, driven by progress in its New Jersey affiliate, ABCO Garden State LLC. However, adjusted EBITDA fell 12% to $1.82 million, reflecting pricing challenges in Oregon and Michigan and investments in growth initiatives.

Grown Rogue’s pro forma metrics, which include the unconsolidated New Jersey affiliate, showed revenue growth of 4% year-over-year and 8% when excluding one-time contributions from the termination of a services agreement with Vireo in Q2 2024. Pro forma adjusted EBITDA, however, declined 12% to $1.82 million, or 2% on an apples-to-apples basis, as pricing pressures and increased overhead weighed on margins. Under International Financial Reporting Standards (IFRS), which exclude the New Jersey affiliate, revenue was $5.56 million, down 28% from the prior year, and adjusted EBITDA fell 75% to $0.53 million. The IFRS figures reflect the absence of Vireo-related revenue and the company’s focus on organic growth in newer markets.

In Oregon, Grown Rogue generated $3.08 million in revenue, a 16% decrease from the prior year, with adjusted EBITDA of $0.80 million, maintaining a 26.1% margin. The state faced a 25% year-over-year drop in average selling prices (ASPs) for A-grade flower, driven by a competitive market. Despite this, the company’s focus on cost efficiency and quality helped sustain profitability in its core market.

Michigan operations contributed $2.28 million in revenue, down 34% year-over-year, with adjusted EBITDA of $0.78 million and a 34.2% margin. Like Oregon, Michigan saw a 26% decline in ASPs for premium flower, yet the company’s operational discipline preserved healthy margins. These results highlight Grown Rogue’s ability to navigate price-sensitive environments through streamlined production.

The New Jersey affiliate, ABCO Garden State, delivered $2.65 million in revenue and $1.29 million in adjusted EBITDA, achieving a 48.6% margin in its second full quarter of sales. This performance underscores the company’s ability to replicate its cultivation model in a newer market with less price volatility, positioning New Jersey as a key growth driver.

Grown Rogue is advancing its organic growth strategy while remaining open to acquisitions. The Illinois facility’s Phase 1 construction is underway, and Minnesota’s potential as a new market is under evaluation. The company is also monitoring federal discussions on Cannabis rescheduling, which could reduce regulatory burdens but is not expected to alter its strategy significantly.

The company’s investments in corporate overhead and team capabilities aim to preserve its operational discipline as it scales. While these moves have pressured short-term margins, management believes they position Grown Rogue to seize emerging opportunities, particularly in distressed markets.

Grow Rogue’s results come out at a time when the U.S. Cannabis industry struggles with oversupply, price compression, and regulatory challenges. The company’s ability to maintain profitability in Oregon and Michigan, where wholesale prices have fallen sharply, signals resilience. Its success in New Jersey, a newer market with stronger pricing dynamics, suggests a scalable model that could drive future growth. However, the EBITDA decline highlights the challenges of balancing expansion with profitability in a competitive sector.

Generally, Grown Rogue’s Q2 performance reflects the broader dynamics. The company’s ability to sustain margins in Oregon and Michigan amid steep price declines demonstrates operational strength, while New Jersey’s high-margin contribution signals growth potential. Challenges remain, including the costs of scaling and the uncertainty of distressed asset deals. Yet, with a focus on craft-quality flower and disciplined execution, Grown Rogue appears well-positioned to weather industry turbulence and emerge as a consolidator in the years ahead. Investors will look to future quarters for evidence of margin recovery and successful expansion as the company builds on its flower-forward foundation.