MariMed (OTCMKTS:MRMD) reported record third-quarter 2026 revenue as higher wholesale shipments and increased retail traffic offset continued pricing pressure in its cannabis markets. Profitability improved from the preceding quarter, though adjusted earnings and net income declined from a year earlier.
Revenue rose 8.5% year over year and 5.5% sequentially to $44.2 million, the company’s highest quarterly total. Adjusted EBITDA was $4.7 million, up 18% from the second quarter but down 9% from the prior-year period.
“We are moving significantly more product, and that is offsetting lower prices,” Chief Financial Officer Mario Pinho said on the earnings call.
Wholesale and Retail Both Grow
Wholesale revenue increased 8% year over year to $19.5 million. Sequentially, it rose 5.2%, with higher shipment volume adding $1.4 million, according to Pinho. He said the company lost ground on pricing even as volume increased.
Chief Commercial Officer Ryan Crandall said MariMed sold products into 721 locations during the quarter, up 7% sequentially and 13% from a year earlier. The company increased its portfolio’s market share by 150 basis points across its core markets, he said.
Chief Executive Officer Jon Levine said Betty’s Eddies remained the top edible brand in Massachusetts, Maryland, Illinois and Delaware. In Maine, where MariMed operates through a licensing partner, the brand rose to the No. 2 edible position from No. 3 in the second quarter, he said.
Retail revenue rose 8% year over year to $24.5 million, marking a fourth consecutive quarter of annual growth. Store transactions increased 7% from a year earlier, while average order value rose 1%, Crandall said.
Delaware was MariMed’s strongest growth market, with retail sales up 26% year over year and 13% sequentially. Illinois retail sales increased 11% year over year, with the Metropolis store contributing the most to that growth, Crandall said. Membership in the company’s Thrive Perks loyalty program increased 31% through the first nine months of the year.
Margin Pressure and Cash Flow
Adjusted gross margin was 40%, unchanged from the second quarter but down from 41.4% a year earlier. Pinho attributed the annual decline to wholesale price compression, particularly in Massachusetts, and higher input costs.
GAAP operating expenses were $15.9 million, or 36% of revenue, compared with 38% in the preceding quarter. Pinho said expenses rose $130,000 sequentially while revenue increased $2.3 million, demonstrating improved operating leverage.
MariMed reported a net loss of $3.5 million, compared with a $2.9 million loss a year earlier. Operating income fell to $1.2 million from $1.6 million. Pinho said the entire increase in the company’s year-to-date net loss was related to the impact of Section 280E, the federal tax provision that restricts deductions for cannabis businesses.
Third-quarter operating cash flow rose to $3.5 million from $2.7 million a year earlier, while capital expenditures were $245,000. MariMed ended the quarter with $10.4 million in cash and $81.2 million in total debt, including finance leases.
New York Plans and Regulatory Outlook
MariMed expects to launch its brands in New York in the first half of 2027 through a licensing partnership. Levine said the build-out of a processing kitchen with its partner remains on schedule. Crandall confirmed that the agreement covers the company’s full portfolio, not just Betty’s Eddies.
Pinho said licensing remains small, accounting for well under 1% of consolidated revenue, but is the company’s highest-margin channel. Maine licensing revenue grew 43% sequentially, he said.
Levine said shareholders authorized the board to implement a reverse stock split if certain conditions are met. He said the company would consider a split and a potential uplisting to a major U.S. exchange if a significant event, such as rescheduling or banking reform, occurred.
Asked about fourth-quarter conditions, Pinho declined to provide guidance. He cited brand strength, holiday marketing and potential benefits from tighter hemp regulation in Illinois as possible tailwinds, while identifying price compression and higher production costs as risks. Crandall said the effect of any hemp restrictions remains uncertain.
Levine said MariMed continues to evaluate expansion opportunities, including in Maryland, but faces restrictions on license transfers there. On acquisitions more broadly, he said the company is seeking opportunities that can generate cash flow and profitability quickly and remains disciplined on valuations.
About MariMed (OTCMKTS:MRMD)
MariMed, Inc. is a U.S.-based cannabis company that develops, operates and manages licensed cannabis cultivation, processing and dispensary facilities. The company serves both medical and adult-use markets, where permitted by state law, and focuses on producing and distributing cannabis flower, concentrates, edibles, tinctures and other cannabis-infused products. MariMed markets products under brands that have included Betty’s Eddies, Nature’s Heritage, InHouse and Kalm Fusion. Its products are sold through the company’s retail operations and third-party dispensaries in its operating markets.
