Grown Rogue Reports Q1 2026 Financial Results

MEDFORD – Grown Rogue International Inc. delivered solid top-line gains in the opening months of 2026, underscoring its push into select markets while managing pressures in more established ones. The company, known for its focus on craft flower and operational discipline, released results that showed revenue climbing notably year over year.

Revenue reached $9.2 million in the first quarter, up about 28% from $7.2 million a year earlier. New Jersey carried most of the load, with revenue there nearly doubling to $3.4 million from $1.8 million. Oregon posted modest growth to $3 million, while Michigan revenue rose to $2.7 million on a reported basis after the state’s new wholesale excise tax took effect. Excluding that tax impact, Michigan sales slipped roughly 4%.

Gross profit came in at $4 million, compared with $3.4 million in the prior-year period, though the gross margin eased to 43.2% from 47%. Adjusted EBITDA rose to approximately $1.6 million, with the margin ticking up slightly to 17.1% from 16.6%. The company reported a GAAP net loss of $2.2 million, largely because of $1.5 million in non-cash fair value losses. That compared with net income of $0.7 million in the first quarter of 2025, which had included fair value gains of the same amount. Cash and equivalents stood at $13.7 million at the end of March, up from $9.8 million a year earlier.

Management pointed to strong sell-through of packaged, branded products in New Jersey, where nearly all revenue came from those items. Phase II construction is underway there, with the first additional flower room expected to add about 25% more capacity soon and further rooms coming online through the year. The company aims to roughly double its New Jersey flowering canopy by year-end.

In Oregon and Michigan, mature-market challenges persisted, including pricing pressure. The company has focused on cost control, yield improvements, and infrastructure upgrades. Michigan showed better yields, and similar efforts are rolling out in Oregon. Grown Rogue also launched in-house vape products using cured resin and full-spectrum formulations, aiming to boost wallet share and make better use of biomass.

On the expansion pipeline, construction continued at the company’s Fridley, Minnesota facility, with Phase I targeted to come online late in Q3 2026 and first revenue expected in Q1 2027. In Illinois, operations at a turnkey cultivation facility in Dwight are expected to commence this quarter, subject to regulatory approval, beginning with 5,000 square feet of flowering canopy.

Management raised its 2026 revenue guidance to a range of $34–$37 million, up from the prior range of $32–$35 million, citing greater comfort with Michigan performance following the wholesale tax implementation and continued confidence in expansion plans.

For a company of Grown Rogue’s size, the Q1 report reads as a disciplined execution story rather than a breakout moment. The New Jersey thesis is holding: branded flower selling through at volume in a competitive market is not a given, and the upcoming capacity expansion there will test whether quality can scale. Meanwhile, the company’s move into vapes and its Illinois and Minnesota buildouts are reasonable bets on extending a model that has worked at smaller scale. The risk, as always in multi-state Cannabis, is execution timing – regulatory delays and construction overruns can turn a clean growth narrative into a cash management story fast. Grown Rogue’s margin profile gives it some runway. How it uses that runway in the next two quarters will matter considerably.