Company: JUSHF
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001628280-25-037797
Chunk: 4

Company: Jushi Holdings Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 2
Chunk 4
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 June 30, 2024. 

Wholesale revenue decreased $1,997. The decrease is primarily attributable to a decline of $1,518 in Virginia due to  limited availability of products available to third parties through our wholesale channel as we prioritized supplying our retail stores, and delays from the state mandated seed-to-sale inventory tracking system conversion which prevented shipments to certain customers close to the end of the quarter. Additionally, bulk cannabis flower sales declined $544 in Massachusetts.

25

Gross Profit

Gross profit was $28,924 compared to $32,566, a decrease of $3,642 or 11%. Gross profit margin decreased to 44% compared to 50%. The decreases in gross profit and gross profit margin were driven by continued competitive pricing pressure requiring higher discounting in our retail channel. In addition, higher production costs per unit from prior periods are being reflected in the current quarter’s cost of sales as products produced in prior quarters turn. These decreases were partially offset by higher gross profit and gross profit margin in Ohio as a result of new dispensary openings, as well as lower costs following the ramping up of our grower processor facility in 2024 to support the transition to adult-use. Jushi branded product sales as a percentage of total retail revenue were 56% across the Company’s five vertical markets compared to 56% in the prior year. 

Operating Expenses

Operating expenses were $25,322 compared to $24,162, an increase of $1,160 or 5%. The following table presents information on our operating expenses for the periods indicated:

Three Months Ended June 30,20252024$ Change% ChangeSalaries, wages and employee related expenses$14,591 $14,192 $399 3 %Depreciation and amortization expenses4,593 3,827 766 20 %Rent and related expenses3,034 2,961 73 2 %Professional fees and legal expenses1,855 1,606 249 16 %Share-based compensation expense374 347 27 8 %Gain on asset disposals and lease terminations(3,424)(2,626)(798)30 %Other expenses (1)4,299 3,855 444 12 %Total operating expenses$25,322 $24,162 $1,160 5 %

(1)     Other expenses are primarily comprised of marketing and selling expenses, insurance costs,