MariMed Steps Away from Missouri Operations

NORWOOD – In a sharp turn from expansion plans, MariMed Inc. announced it is shutting down its Missouri operations, ending a yearlong effort to build a foothold in the state’s burgeoning recreational market and opting instead to channel investments into states where it already holds solid ground.

The decision, detailed in a company statement, marks a retreat from a market where MariMed had managed a cultivation and processing facility on behalf of another licensed operator under a services agreement. The company had been pursuing regulatory approval to transfer that license into its own portfolio. That pursuit is now off the table.

“Our brands performed well in the select stores where they were available in Missouri, but we concluded that reaching scale would have required significant resources we believe are better utilized in our core markets, where MariMed has established strong retail and wholesale positions,” CEO Jon Levine said in the release.

MariMed entered Missouri with ambitions tied to the state’s legalization and sales of adult-use Cannabis in 2023. The market has since expanded, with more than 200 dispensaries now operating and monthly sales topping $120 million. Yet growth has come with familiar headwinds: wholesale prices have softened modestly, from over $2,000 per pound in 2023 to about $1,900 by late 2025, according to industry trackers. Operators like MariMed, which rely on vertical integration [controlling cultivation, processing, and retail] have faced squeezed margins as supply outpaces demand.

In its most recent quarterly earnings in August, MariMed flagged Missouri as a drag on performance. Revenue from the state contributed less than expected, amid broader industry pressures including market saturation and stalled federal reforms that limit banking and tax relief for Cannabis businesses. The company’s overall revenue dipped 2% year-over-year to $39.6 million in Q2 2025, though it posted a surprise profit thanks to cost controls.

By exiting, MariMed anticipates a lift to its financial metrics. The move should enhance gross margins and adjusted EBITDA, metrics that have hovered in the low teens for the company, by freeing up capital for debt reduction and expansion.

The company now operates 13 retail dispensaries and six cultivation and processing sites across Delaware, Illinois, Maryland, Massachusetts, Ohio and Pennsylvania – states where it claims a combined 15% wholesale market share in some segments. Recent moves include licensing agreement in Pennsylvania and bolstering its edibles, which generated $10 million in sales last quarter.

Looking ahead, MariMed isn’t closing the door entirely on Missouri. Levine indicated openness to licensing deals with vertically integrated partners there, provided they align with the company’s push to become a consumer-packaged goods leader in Cannabis. Such arrangements could allow brand distribution without the capital-intensive burden of full operations.

For MariMed, this calculated withdrawal underscores a maturing playbook in the U.S. Cannabis sector: prioritize profitability over footprint. As one industry observer put it in a recent earnings recap, “In a business where cash is king, sometimes the boldest strategy is knowing when to fold a hand.”

On a large scale, MariMed’s pivot reflects a wider recalibration among mid-tier MSOs. With recreational markets in 24 states now generating steady tax revenue but inconsistent operator returns, expect more firms to double down on regional strongholds rather than chase every opportunity. For investors eyeing the space, it’s a reminder that execution in a few markets often trumps overextension in many. MariMed’s next earnings will offer the test of whether this trim sharpens the bottom line or merely stems a bleed.