Revenue misses modestly as EBITDA falls and cash-flow targets are cut

The quarter came in slightly below the published revenue bar. Revenue was $271 million versus a published consensus of roughly $274 million, a narrow miss rather than a collapse. The comparison is also distorted because Harvest was consolidated through June 3 and medical-only operations were reported thereafter. (Financial Highlights; Pro Forma Financial Highlights)

Underlying profitability improved versus last year, but weakened sequentially. Adjusted net income held at $20 million and adjusted EPS rose to $0.11 from $0.10 in Q1, while gross margin improved sequentially to 60%. But adjusted EBITDA fell 11% year over year and 2% sequentially to $98 million, with margin down from 37% last year to 36%. The filing therefore shows a profitable medical-only base, not accelerating earnings momentum. (Financial Highlights; Reconciliation of Non-GAAP Financial Measures)

The $406 million GAAP loss is mostly a restructuring charge, not operating deterioration of that size. The loss includes a $403 million Harvest deconsolidation charge and a $3 million equity loss, while adjusted results exclude those items. The deconsolidation and NYSE listing were already announced events, so they add limited incremental surprise; the more important change is that future reported revenue will reflect the smaller medical-only business. (Income Statement; Harvest Deconsolidation; Listing Following Medical Marijuana Rescheduling)

The clearest negative signal is the lower cash-flow outlook. Management reduced its 2026 operating-cash-flow target from at least $250 million to at least $225 million because of the deconsolidation, while raising expected capital expenditure to as much as $95 million from $85 million. It also expects Q3 reported revenue to be comparable to Q2 medical-only revenue of $222 million—not the full $271 million reported in Q2. That resets the near-term revenue base lower even as Georgia expansion, pharmacy distribution, Texas, and tax relief remain future catalysts. (Financial Targets; Catalysts)

Net read: the filing is mildly worse than expected. The adjusted profit is respectable and gross margin is stable, but the modest revenue miss, lower EBITDA, sharply weaker cash generation, reduced annual cash-flow target, and lower post-deconsolidation revenue base outweigh the improvement in adjusted net income. The filing reshapes Trulieve into a smaller, medical-only reported business with cleaner federal compliance and potential tax benefits, but those benefits are not yet translating into growth.