Q2 2026 Grown Rogue International Inc Earnings Call Transcript
Key Points
- Grown Rogue International Inc (GRUSF) reported another solid quarter with record yields in Michigan, achieving 90 grams per square foot of flower and a cost of $277 per pound, setting a new standard for the company.
- The company successfully transitioned to 100% packaged flower sales in New Jersey, and even purchased bulk products on the open market to meet the high demand for its brands, indicating strong market traction.
- Grown Rogue International Inc (GRUSF) is making significant progress on its expansion projects, with New Jersey on track to reach full 16,000 square foot capacity by year-end, Illinois expecting its first harvest in September, and Minnesota nearing the finish line for Phase 1.
- The company demonstrated capital allocation discipline by bidding for Forefront Massachusetts operations but walking away when the bidding became too rich, showing a focus on value over scale.
- Grown Rogue International Inc (GRUSF) raised its guidance for the year, driven by production volumes in Michigan, pricing stability in Oregon, and ongoing confidence in the New Jersey market.
- The company's innovative approach in New Jersey, such as converting shake into 'Yeti Ready to Roll' products and selling it at $1,000 per pound versus $250 for extraction, showcases creative revenue generation.
- Grown Rogue International Inc (GRUSF) faces ongoing challenges in New Jersey, where yields and costs have not yet reached the excellence seen in Michigan and Oregon, requiring further work to improve efficiency.
- The company is dealing with regulatory uncertainties in Minnesota, which could delay the timeline for bringing plants into the building and achieving first harvest by the end of the year.
- Grown Rogue International Inc (GRUSF) is navigating a challenging pricing environment in Michigan, including a wholesale tax implemented earlier in the year, which could pressure margins.
- The company's expansion into new markets like Illinois and Minnesota involves higher facility and labor costs compared to Oregon and Michigan, potentially impacting overall cost structures.
- Grown Rogue International Inc (GRUSF) experienced a leadership change in its New Jersey cultivation department, which may have contributed to the current yield and cost gaps in that market.
- The company's ASP in New Jersey was artificially impacted by the inclusion of lower-priced 'Yeti Ready to Roll' products, requiring adjustments to reporting metrics to reflect true flower pricing.
As a reminder, during the course of this conference call, Grown Rogue management may make forward-looking statements based on current expectations, estimates, and assumptions. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied.
These risks are described in the Risk Factors section of the company's filings and other public disclosure materials. Any forward-looking statements made on this call speak only as of today, and Groner-Rogues undertakes no obligation to update or revise them in the future except as required by law. During today's call, we will also refer to certain non-GAAP financial measures, including EBITDA and adjusted EBITDA.
These measures do not have standardized meanings under GAAP and may not be comparable to similarly titled measures used by other companies. Grown Rogue believes these measures provide useful supplemental information to investors, but they should not be considered a substitute for GAAP results. Our reconciliation to the most directly comparable GAAP masters is
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
