Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Benchmark raised its price target on Green Thumb Industries (OTC:GTBIF) to $8.00 from $7.00 on Monday, while maintaining a Buy rating on the cannabis company’s stock. According to InvestingPro data, analysts maintain a Strong Buy consensus with price targets ranging from $7 to $20, suggesting significant potential upside from current levels.
Green Thumb reported second-quarter 2025 revenue of $293.3 million, representing a 4.7% year-over-year increase and exceeding the consensus estimate of $281 million. The company’s growth was primarily driven by strength in its Consumer Packaged Goods segment, while retail sales remained flat with a 4.1% comparable store sales decline. InvestingPro analysis shows the company maintains a healthy gross profit margin of 51.6% and has achieved a "GOOD" overall financial health score.
The company’s adjusted EBITDA reached $82.7 million, translating to a 28.2% margin, which aligned with the consensus expectation of $83 million but decreased from $93.8 million (33.5% margin) in the same period last year. This decline was attributed to price compression and higher operating costs related to new store openings and increased cash-based incentives.
Green Thumb maintained strong operating cash flow at $56 million and reported $177 million in cash on hand. The company also repurchased 5.6 million shares for $24 million during the quarter.
Management provided guidance for the third quarter, projecting revenue to be flat to down low-single digits if Minnesota’s adult-use launch does not occur in the quarter. The company also expects margins and adjusted EBITDA to remain below 30% in upcoming periods.
In other recent news, Green Thumb Industries reported its first-quarter earnings for 2025, with revenues coming in at $280 million. This figure was slightly below market expectations, which had anticipated revenues of $284 million. The company’s Adjusted EBITDA met consensus estimates at $85 million, reflecting a stable financial performance despite external challenges. Green Thumb also generated $74 million in operating cash flow, underscoring its focus on capital discipline and financial resilience amid pricing pressures and increased retail competition. Following these earnings results, Benchmark analysts revised their outlook for the company, reducing the price target from $10.00 to $7.00 but maintaining a Buy rating. This adjustment highlights the cautious optimism surrounding Green Thumb’s ability to navigate macroeconomic and regulatory uncertainties. These developments provide investors with insights into the company’s financial health and strategic priorities.
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