Cresco Labs Q1 2026 Earnings Highlights
Cresco Labs generated $151 million in revenue during the first quarter of 2026, establishing a baseline for future growth following exits from California and adjustments to Michigan excise taxes. The company reported $77 million in adjusted gross profit and $33 million in adjusted EBITDA, aligning with internal expectations and reflecting operational efficiencies built over the past two years.
Financial statements and management’s discussion and analysis for the quarter ended March 31, 2026, appear on SEDAR and EDGAR. All figures are in U.S. dollars and represent unaudited interim results subject to final reviews.
Strategic Footprint Expansion
Executives emphasized building leadership in high-potential markets. In Pennsylvania, the company secured an agreement for nine additional dispensaries, operating them under a management services agreement post-quarter. This expands the footprint to 27 Sunnyside stores, enhancing scale in the second-largest medical market.
“This is a well-structured transaction that builds on our leading position… further preparing us for a likely adult use catalyst,” stated Charles Bachtell, CEO and Co-Founder.
In Ohio, two new Sunnyside dispensaries opened in Bridgeport and Aberdeen, bringing the total to eight stores focused on border markets. Kentucky achieved its first harvest in April, with branded products expected in Q2, though contributions remain modest this year amid program ramp-up. In Texas, Cresco Labs won one of 15 merit-based licenses, positioning for long-term growth.
Operational Excellence Drives Performance
Wholesale operations maintain top positions in Illinois, Pennsylvania, Massachusetts, and Ohio, supported by consistent cultivation and strong brands. Sunnyside dispensaries outperform state averages by over 30% in revenue per store, driven by optimal site selection and execution.
Cultivation teams boosted yields and quality within existing facilities, evident in Florida where market share held steady despite competition. Average flower potency rose significantly year-over-year, with new harvests entering the market.
Bachtell praised the team: “They continue to be incredibly focused and intentional in how they make decisions across wholesale, retail, and capital allocation.”
Rescheduling Momentum
Progress on rescheduling cannabis from Schedule I to III promises benefits, including 280E tax relief for medical operations. “It’s a win for all patients nationwide and will usher in a new era of healthcare,” Bachtell noted, anticipating improved profitability and capital access industry-wide.
Performance is poised to accelerate through 2026 and into 2027 as growth initiatives scale. Participants included CEO Charles Bachtell, CFO Sharon Schuler, President Greg Butler, and SVP T.J. Cole.
