Company: JUSHF
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001628280-25-048797
Chunk: 77

Company: Jushi Holdings Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 8
Chunk 77
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 and adult-use dispensaries in Ohio. These dispensaries were acquired by us in February 2025. Furthermore, we consolidated a third dispensary which opened in February 2025, and a fourth dispensary which opened in April 2025 as a result of our gaining control through the management services agreements previously entered into. The third and fourth dispensaries were acquired by us in June 2025 and August 2025, respectively. The addition of the fifth dispensary opened in September 2025 and is operating under a management services agreement pending regulatory approvals of ownership transfer to the Company.

These increases were partially offset by: 

•A decline in sales in Illinois of $4,434 - the number of units sold decreased by approximately 10% and the average price per unit declined due to continued competition; 

•A decline in sales in Massachusetts of $3,042 - the number of units sold decreased by approximately 8% and the average price per unit declined due to continued competition and price compression; and

•A decline in sales in Nevada of $2,050 - the number of units sold decreased by approximately 3% driven in part by the closure of one dispensary in May 2025, and the average price per unit declined as we increased our use of promotions due to continued competition.

Additionally, while retail revenue in Pennsylvania remained relatively flat, the number of units sold increased by approximately 13% driven in part by the opening of one new dispensary in February 2025. However, the average price per unit declined due to increased competition and price compression.

Wholesale revenue decreased $2,350. The decrease is primarily attributable to a decline of $2,818 in Virginia due to limited availability of products for third parties through our wholesale channel as we prioritized supplying our own retail stores during the first half of 2025, and a decline of $1,286 in Massachusetts due to lower bulk cannabis flower sales. These decreases were partially offset by an increase of $1,213 in Ohio due to the transition to adult-use during the third quarter of 2024, as well as increased production capacity.

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Gross Profit

Gross profit was $85,363 compared to $92,895, a decrease of $7,532 or 8%. Gross profit margin decreased to 44% compared to 48%. The decrease in gross profit and gross profit margin was 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