Grown Rogue Reports Q3 2026 Financial Results

MEDFORD – Grown Rogue International Inc. reported higher quarterly revenue and stronger operating cash flow, buoyed by sales growth in New Jersey and tighter cultivation efficiency across its legacy facilities. Yet the craft Cannabis producer swung to a substantial net loss after writing down an underperforming asset in Illinois and absorbing expansion expenses across multiple states.

Revenue rose 29% from a year earlier to $11 million, up from $8.5 million in the comparable period of 2025. Gross profit increased 50% to $5.5 million, while adjusted operating earnings reached $2.6 million, up from $1.5 million a year earlier.

Despite those operational gains, the company posted a net loss of $8.9 million, reversing net income of $1.6 million in the prior year quarter. The quarterly deficit included a $5 million impairment tied to the Rogue EBC facility acquisition in Illinois. During an investor call, CEO Obie Strickler noted that management redirected capital toward a separate site in Dwight, Illinois, offering a faster and less costly route to market.

Meanwhile, cash and cash equivalents climbed to $16.6 million at the end of September from $11.5 million in June, reflecting the consolidation of Grown Rogue New York. That majority owned subsidiary secured $10 million in preferred equity and a $5 million loan commitment from a financial partner to acquire PharmaCann assets in New York, including a Hamptonburgh cultivation facility and four Verilife dispensaries.

Regional results underscored the sharp divide between emerging and saturated Cannabis markets. New Jersey generated $4.9 million in revenue and $2.4 million in adjusted operating earnings, rising 44% and 65% from a year earlier as yields improved.

In October, Grown Rogue exercised an option to raise its stake in subsidiary ABCO Garden State to 70%. Conversely, steep price competition pressured wholesale returns in Oregon and Michigan, even as indoor yields rose to 85 and 93 grams per square foot and costs dropped to $284 and $255 per pound. In Minnesota, cultivation began at the Fridley facility ahead of a late November harvest and January 2027 sales.

Management reaffirmed its full year 2026 revenue forecast of $38 million to $41 million and projected 50% revenue growth alongside roughly double the adjusted operating earnings in 2027, excluding New York.

For observers of the North American Cannabis sector, Grown Rogue illustrates a broader strategic reality among midsize MSOs. Long term durability increasingly favors disciplined growers capable of exporting low cost cultivation methods from oversupplied Western and Midwestern states into supply constrained Eastern markets, provided they pace capital spending carefully through regulatory approvals.