Vext Science reported second-quarter 2026 results that highlighted margin expansion despite a decline in revenue, as the cannabis operator navigated competitive pricing pressures in key markets.
The company posted revenue of $12.1 million in Q2 2026, a 10% decrease from $13.4 million in the same period a year earlier, though the figure was roughly flat compared with the prior quarter. Gross profit increased to $6.7 million from $4.9 million in Q2 2025, lifting the gross margin to 55% from 36%. Excluding fair-value adjustments, gross margin stood at 44%, up from about 39% a year ago. The net loss narrowed to $300,000 from $1.5 million in the year-ago quarter, while adjusted EBITDA rose 22% sequentially to $3.4 million, with an adjusted EBITDA margin of 28%.
Operating cash flow totaled $1.2 million, translating to a 10% cash-flow margin, while cash at quarter-end was approximately $4.5 million. Net working capital improved to negative $900,000 from negative $11.7 million at the end of 2025, though an uncertain tax position increased to $11.7 million from $8.1 million at year-end 2025. The company’s market capitalization stood at $50.21 million, with trailing twelve-month EBITDA of $9.99 million and a loss per share of $0.06.
Wholesale revenue declined to $1.4 million from $2.6 million a year earlier. The company missed consensus estimates, which had projected revenue of $14.32 million and a loss of $0.01 per share. Vext’s shares were last trading at $0.28, up 14.3% from the prior close, and within a 52-week range of $0.19 to $0.40.
In Ohio, where statewide sales grew about 28% in the first half of 2026, Vext operates six dispensaries and has a seventh under construction in Columbus, slated to open in Q1 2027. Cultivation yields surpassed 100 grams per plant for the first time, and the company built $2 million in inventory due to product approval delays and improved yields. A 25,000-square-foot wholesale facility in Ohio remains underutilized.
Arizona presented greater challenges, with statewide sales down about 6% in the first five months of 2026. Wholesale flower prices fell below production costs, with Eloy facility costs reported at roughly $700 per pound versus market sourcing below $400 and occasionally near $250. The Eloy cultivation property was classified as held for sale at $7.8 million, and operations were consolidated around two Phoenix-area dispensaries and a light manufacturing footprint.
Post-quarter, Vext extended the maturity of its East West Bank note by six months to January 2028. The company also completed a $17 million financing agreement with Wright-Patt Credit Union, using proceeds to refinance $10.5 million of existing WPCU debt, acquire a Jackson, Ohio cultivation and manufacturing facility for $6 million, and fund further expansion in Ohio.
