Cresco Labs Reports Q2 2026 Financial Results

CHICAGO – Cresco Labs Inc. released its second-quarter 2026 financial results, offering a clear look at how the multistate operator performed through the end of June. The company, known for its branded products and Sunnyside retail stores, reported progress in several markets while noting a leadership change at the finance desk.

Revenue reached $173 million for the quarter ended June 30. That marked a 15% increase from the prior quarter. Gross profit came in at $87 million, with adjusted gross profit at $89 million and an adjusted gross margin of 51.6%. SG&A expenses totaled $63 million, or 36.5% of revenue; on an adjusted basis the figure was $55 million, or 32% of revenue. The gap largely reflected one-time costs tied to mergers and acquisitions, uplisting preparation and federal reform efforts.

Adjusted EBITDA stood at $40 million, producing a 22.8% margin. The company recorded net income of $15 million for the period. Cresco Labs also said it retained the top market-share position in several large state markets, citing data from Hoodie Analytics.

In the accompanying statement, management pointed to operational steps that supported the sequential improvement. In Pennsylvania, the company completed its first full quarter running nine acquired dispensaries and lifted their gross-profit dollars by 11% before any rebranding. Newer Sunnyside stores in Ohio ranked among the stronger new openings in that state. In Kentucky, the first branded products reached patients in June as the operation moved from construction into sales.

The same release addressed broader policy developments. Management described the recent federal rescheduling of medical Cannabis as the first concrete federal reform for the sector and noted that the removal of Internal Revenue Code Section 280E improves net-income and balance-sheet dynamics while creating a clearer route toward U.S. exchange listings.

On the balance sheet, Cresco Labs held $67 million in cash, cash equivalents and restricted cash as of June 30. The company carried a senior secured term loan, net of discounts and issuance costs, of $311 million and a mortgage loan of $19 million. Fully diluted shares stood at roughly 507 million.

Separately, the company announced that CFO Sharon Schuler has decided to step down. She will remain available during the transition. Mark Stortz, currently senior vice president and corporate controller, will serve as interim CFO while the board searches for a permanent replacement.

The sequential revenue and Adjusted EBITDA advances stand out against the prior quarter’s softer print, reflecting measurable contribution from the Pennsylvania dispensary integrations and early traction in Ohio and Kentucky. The swing to net income, paired with management’s direct reference to 280E relief, supplies a clearer view of operating leverage once federal tax treatment improves. At the same time, the elevated SG&A gap driven by one-time costs, the still-substantial term-loan balance, and the interim CFO arrangement introduce variables that investors will track against cash generation and any further market expansion.