Trulieve Cannabis Corp. unveiled its 2025 financial results. The company announced a full-year revenue of $1.2 billion. This marks a significant financial snapshot. Retail sales drove 94% of this total. Trulieve also reported record cash flow generation. However, a substantial tax overhang remains a key concern.
Full Year 2025 Financial Performance
The company achieved a robust 60% gross margin. GAAP gross profit reached $711 million for the full year. Trulieve reported a GAAP net loss of $116 million. This figure excludes certain charges and impairments. Adjusted net loss narrowed to $27 million. Furthermore, Trulieve’s adjusted EBITDA hit a record $427 million. This represents a 36% margin on revenue.
Fourth Quarter 2025 Highlights
In the fourth quarter, Trulieve generated $293 million in revenue. Retail sales accounted for 93% of this amount. The company maintained a 60% gross margin in Q4. GAAP gross profit for the quarter was $175 million. The GAAP net loss for Q4 stood at $43 million. Adjusted EBITDA was $105 million, also at a 36% margin.
Strong Cash Flow and Financial Management
Trulieve demonstrated strong cash generation capabilities. Record cash flow from operations reached $273 million for the full year. Free cash flow also hit a record at $229 million. The company ended 2025 with $256 million in cash reserves. Trulieve also took steps to manage its debt. It redeemed $368 million in senior secured notes due in 2026. Additionally, the company closed a $140 million private placement of notes due in 2030. Total debt stood at $232 million with a 9.4% interest rate.
Operational Achievements and Expansion
Operationally, Trulieve sold a record 50.1 million branded product units in 2025. This represented a 5% increase year-over-year. The company’s customer rewards program grew significantly. It now boasts 915,000 members. Trulieve expanded its retail footprint. It finished 2025 with 233 to 234 dispensaries nationwide. The company also secured conditional approval for a dispensing license in Texas.
The Persistent Tax Overhang
A major factor impacting Trulieve’s profitability is the tax situation. The company faces a significant tax overhang due to Section 280E of the Internal Revenue Code. Trulieve carries an uncertain tax position liability of $668 million. Management indicated that without the burden of 280E, net income for both Q4 and the full year 2025 would have been positive. This tax issue continues to be a critical point for investors and future earnings.
Looking Ahead
CEO Kim Rivers expressed confidence, noting the company finished the year strong. She highlighted winning the Texas license and repositioning debt. Rivers anticipates momentum into 2026. She cited the potential rescheduling of cannabis as a positive factor. The company plans to prioritize expanded access, customer loyalty, and branded products. Trulieve’s strategy focuses on strong operations and cash generation. The evolving cannabis industry news adds to the ongoing trends affecting the sector.
Trulieve’s 2025 performance shows a strong operational core. Revenue remains steady with robust margins and cash flow. However, the resolution of its tax liabilities remains a key factor for future financial health and investor outlook. The cannabis market continues to trend toward reform, which could impact companies like Trulieve. Examining specific cannabis strains or product lines is outside the scope of this financial report. This news is significant for the cannabis industry.
