Cresco Labs reported $173.3 million in revenue for the second quarter of 2026, an increase of 15% from the previous quarter and 6% compared with the same period last year.
The Chicago-based marijuana company generated $86.9 million in gross profit during the quarter ending June 30, representing a gross margin of 50.2%. Adjusted gross profit was $89.5 million, with an adjusted margin of 51.6%.
Cresco posted net income of $15.4 million, compared with a net loss of $17 million in the first quarter and a $13.9 million loss during the second quarter of 2025. The company recorded $13.4 million in operating income, although it had a pretax loss of $3.6 million before receiving an $19 million income tax benefit.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) reached $39.5 million, up from $32.9 million in the previous quarter but slightly below the $40.9 million reported a year earlier. The company’s adjusted EBITDA margin was 22.8%.
“Q2 delivered growth ahead of expectations, with revenue up 15% sequentially to $173 million and Adjusted EBITDA up 20% sequentially,” said CEO Charlie Bachtell.
Bachtell said the company completed its first full quarter operating nine recently acquired Pennsylvania dispensaries, increasing their gross profit dollars by 11% before rebranding any of the locations. He also said Cresco’s newest Sunnyside dispensaries in Ohio are among the state’s highest-performing recent openings, while its first branded products reached Kentucky medical marijuana patients in June.
Cresco generated $15.4 million in operating cash flow and $6.5 million in free cash flow during the quarter, reversing negative free cash flow of $13.2 million in the first quarter.
As of June 30, the company had $67.4 million in cash, cash equivalents and restricted cash. Cresco also reported approximately $311 million in senior secured term loan debt and $19 million in mortgage debt.
The company also announced that Chief Financial Officer Sharon Schuler is stepping down. Schuler will remain during the transition while Cresco searches for a permanent replacement. Mark Stortz, the company’s senior vice president and corporate controller, will serve as interim chief financial officer.
