Vext Science Stock Earnings Reports

Vext delivered a solid Q1 2026 with revenue of $12.2M (up 5% YoY), gross profit more than doubling to $5.5M (45.4% margin), and Adjusted EBITDA of $3.6M (29% margin). Cash from operations was positive at $1.6M despite temporary working-capital and Arizona cultivation drag. Ohio is the primary growth engine: Ohio revenue rose 34% to $8.2M driven by recent dispensary additions, improved cultivation yields, and continued retail expansion (sixth store in Fairfield expected 2Q26, seventh in Columbus later in 2026, and an eighth license progressing into early 2027). Management expects continued yield and margin improvements in Ohio and plans to focus capital allocation on Ohio retail and cultivation expansion. In Arizona, Vext completed the final Eloy harvest in early May and is exiting cultivation to pivot to a capital-light retail and sourcing model; management expects this will reduce operating costs and improve margins and cash flow as the year progresses. Wholesale revenue declined (~50% YoY) and Arizona revenue fell 24% YoY due to oversupply and price compression. Management reported completed tax returns increased the uncertain tax position (UTP) to $10.6M at March 31, 2026, noting potential future relief if retroactive 280E relief is enacted. Cash on hand was ~$5.5M. Management expects the Arizona headwinds to reverse through Q2/Q3 and continues to target operating-leverage-driven margin expansion and improved free cash flow in H2 2026. Capital expenditures for remaining Ohio stores were estimated at roughly $3.0–3.2M for the Columbus store and ~$2.0–2.5M for the eighth store, with traditional financing expected for owned assets.