Company: JUSHF
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001628280-25-023749
Chunk: 3

Company: Jushi Holdings Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 2
Chunk 3
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 dispensaries in seven states as of March 31, 2025, as compared to thirty-five operating dispensaries in seven states on March 31, 2024.

Wholesale revenue decreased $1,088. The decrease is primarily attributable to a decline of $1,263 in Massachusetts due to lower bulk sales, as well as limited availability of products for third parties through our wholesale channel as we prioritized supplying our own retail stores.

Gross Profit

Gross profit was $25,775 compared to $32,330, a decrease of $6,555 or 20%. Gross profit margin decreased to 40% compared to 49%. The decrease in gross profit and gross profit margin was driven by competitive pricing pressure requiring higher discounting in our retail channel which resulted in lower sales dollars. 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. Jushi branded product sales as a percentage of total retail revenue were 56% across the Company’s five vertical markets compared to 54% in the prior year. 

24

Operating Expenses

Operating expenses were $27,646 compared to $28,211, a decrease of $565 or 2%. The following table presents information on our operating expenses for the periods indicated:

Three Months Ended March 31,20252024$ Change% ChangeSalaries, wages and employee related expenses$14,149 $14,147 $2 — %Depreciation and amortization expense4,597 3,278 1,319 40 %Rent and related expenses3,197 2,914 283 10 %Professional fees and legal expenses1,925 2,575 (650)(25)%Share-based compensation expense (forfeiture)(307)1,524 (1,831)(120)%Other expenses (1)4,085 3,773 312 8 %Total operating expenses$27,646 $28,211 $(565)(2)%

(1)     Other expenses are primarily comprised of marketing and selling expenses, insurance costs, administrative and licensing fees, software and technology costs, travel, entertainment and conferences and other.

Lower share-based compensation expense reflects higher forfeitures as well as lower value of share-based compensation granted. Depreciation and amortization expense increased due primarily to the amortization of our business licenses which commenced during the second quarter of 2024, as we concluded that our