MariMed Defies Cannabis Slump with Q1 Growth and Strategic Wins

NORWOOD, Mass. – May 13, 2026 – While many cannabis operators grapple with market saturation and falling prices, MariMed Inc. today announced first-quarter financial results that demonstrate steady growth and strengthening profitability. The multi-state operator reported a year-over-year revenue increase and a significant jump in adjusted EBITDA, signaling that its focus on brand strength and disciplined financial management is paying dividends in a turbulent industry.

For the quarter ending March 31, 2026, MariMed posted revenues of $39.5 million, a modest but meaningful increase from $37.9 million in the same period last year. More impressively, the company's Non-GAAP Adjusted EBITDA—a key metric for operational profitability—rose to $3.6 million, up from $2.5 million in Q1 2025. This boosted its Adjusted EBITDA margin to 9%, a notable improvement from 7% a year prior. Furthermore, the company successfully narrowed its GAAP Net Loss to $(3.8) million from $(5.5) million, indicating a clear path toward profitability.

These results arrive as the broader cannabis sector navigates significant headwinds. Intense competition and oversupply in mature markets have led to what MariMed's CEO, Jon Levine, described as an environment where "many operators continue to face pricing compression and limited growth." Against this backdrop, MariMed's performance highlights a successful strategy of differentiation and operational control.

Navigating a Turbulent Market

MariMed's ability to grow its top and bottom lines stands in contrast to the mixed results seen across the industry. While some large MSOs like Curaleaf and Green Thumb Industries also reported revenue growth in the first quarter, others have felt the sting of market pressures more acutely. Trulieve, for instance, saw a 4% year-over-year revenue decline, attributing it to sustained pricing pressure. MariMed's results suggest its strategy is providing a buffer against these sector-wide challenges.

"In an industry environment where many operators continue to face pricing compression and limited growth, MariMed continues to strengthen profitability, expand branded distribution, and reinforce the market positioning of our core brands through disciplined operational execution," Levine stated in the earnings release.

The company’s growth was balanced between its retail and wholesale channels. Retail product sales climbed to $21.7 million from $20.7 million year-over-year, while wholesale product sales grew to $17.5 million from $16.8 million, demonstrating the effectiveness of its multi-pronged sales strategy.

The Power of the Brand

A cornerstone of MariMed's success is its 'Expand the Brand' strategy, a concerted effort to increase the market penetration of its award-winning product portfolio. The company has focused on making its brands, including the popular Betty's Eddies, Bubby’s Baked, and Vibations, household names among cannabis consumers. This focus on brand equity appears to be a key differentiator in a market where products can otherwise become commoditized.

Execution of this strategy has been swift and strategic. The company recently launched wholesale operations in Missouri and secured a licensing agreement to bring its edibles to New York's burgeoning market in 2026. These moves follow expansions in vertically integrated operations in Ohio and Maryland, designed to capture growth from new adult-use sales.

This brand-first approach is yielding tangible results. According to market data, Betty's Eddies holds the top spot for edibles in its active markets. The company's disciplined expansion has grown its wholesale distribution network to over 1,000 dispensaries nationwide. In a particularly innovative and capital-efficient move, MariMed recently launched a hemp-derived THC version of its Vibations drink mix in Rhode Island, allowing it to enter new retail channels like liquor stores without the significant investment required for new cannabis licenses or facilities.

A Strategic Financial Overhaul

Beyond its operational achievements, MariMed executed a critical financial maneuver in the first quarter that significantly de-risked its balance sheet. On March 2, the company announced a restructuring agreement for its $14.725 million Series B Convertible Preferred Stock. This deal successfully eliminated a mandatory conversion obligation that was due in late February 2026 and would have required a cash payment of approximately $14.2 million.

In place of this near-term liability, MariMed issued a combination of new long-term promissory notes and new convertible preferred stock. This restructuring extended the weighted-average maturity of the obligation to 4.6 years, effectively pushing a major financial deadline into the distant future. This proactive move not only prevented a significant cash outlay but also enhanced the company's liquidity profile, providing greater flexibility to invest in growth opportunities.

Poised for a Post-Rescheduling Landscape

MariMed's solid operational performance and fortified balance sheet position it advantageously to capitalize on what CEO Jon Levine calls a "transformative period for our industry." The most significant transformation is the recent "historic rescheduling announcement" from the U.S. Department of Justice and the Drug Enforcement Administration.

In a landmark decision that took effect in April 2026, the DEA officially moved state-licensed medical cannabis from Schedule I to Schedule III of the Controlled Substances Act. While recreational cannabis remains a Schedule I substance, this change is a seismic shift for medical operators. The primary benefit is the elimination of the punitive Internal Revenue Code Section 280E, which has long prohibited cannabis businesses from deducting ordinary business expenses like rent, payroll, and marketing.

For decades, 280E has resulted in sky-high effective tax rates for cannabis companies, sometimes exceeding 70%, severely restricting cash flow and profitability. With its removal for medical cannabis operations, companies like MariMed are expected to see a dramatic reduction in their federal tax burden. This newfound financial freedom will unlock significant cash flow that can be reinvested into brand building, market expansion, and innovation.

By shoring up its finances and demonstrating consistent operational growth, MariMed has created a stable platform from which to leverage the profound financial benefits of this regulatory evolution. The combination of a strong brand portfolio, expanding distribution, and a much healthier financial outlook positions the company to not only weather the current market's challenges but to thrive as the industry enters a new, more favorable era.