Green Thumb Ended Its String of Profitable Quarters. Is the Stock a Buy?

One big edge that Green Thumb Industries (OTC: GTBIF) had until recently was that it was one of the few marijuana retailers to turn a profit. On Nov. 4, however, the Chicago-based company reported a third-quarter loss per share of $0.02, the first time since 2025's Q2 that it has lost money.

That's not the end of the world, though. The key is that Green Thumb continues to grow sales. It reported Q3 revenue of $324.4 million, up 11.3%, year over year, showing growing demand for its consumer brand portfolio.

Here are three reasons to buy Green Thumb Industries.

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The company's financial discipline

Green Thumb maintains a cash-generative operating profile and balance-sheet discipline. Operational cash flow remains solid at $58 million in Q3, following $76 million in Q1 and $29 million in Q2, enabling management to aggressively return capital to shareholders.

Over the first nine months of 2026, Green Thumb repurchased 13.4 million shares for $77.7 million, reducing outstanding share count from 206.6 million down to 197.5 million, and recently authorized a new $50 million share buyback program.

It is focusing on high-growth states

The primary reason for the Q3 net loss is the company's continued expansion. It opened six RISE dispensaries in the quarter: Port Charlotte and Port St. Lucie in Florida; Sparks in Nevada; and Hanover, West Mifflin, and Allentown in Pennsylvania.

The company is positioned to capture future growth as several major key states transition toward adult-use legalization or expanded access. Green Thumb holds a vertically integrated license in Virginia, where recreational retail launches in July 2027, and a conditional license under Texas' Compassionate Use Program, and continues to expand retail density in states such as New Jersey, Ohio, and Pennsylvania. Together, these expansion markets provide clear multiyear revenue runways.

It remains a stable bet in an unstable industry

Green Thumb is No. 2 in quarterly revenue among the top U.S. cannabis retailers, behind Curaleaf, which recently reported $353 million in Q3. Compared to Curaleaf and Trulieve, Green Thumb is well priced, with a price-to-sales ratio of 1.3. It also has a lower debt-to-earnings before interest, taxes, depreciation, and amortization (EBITDA) level than Curaleaf or Trulieve because it carries less debt.

In Q3, the company reported cash of $316 million and total debt of $277.3 million. Green Thumb is already benefiting from the rescheduling of cannabis to a Schedule III substance. It spent $28.1 million on income taxes in the quarter, nearly half the $49.1 million it spent in the same period a year ago.

Its operating cash flow was $58 million in the quarter, down from $74.1 million in the same quarter in 2025, but that's still superior to the $53 million Trulieve reported in Q2 and the $22 million that Curaleaf reported in the third quarter.

James Halley has no position in any of the stocks mentioned. The Motley Fool recommends Green Thumb Industries. The Motley Fool has a disclosure policy.