MRMD Q4 FY2025 earnings call

• Ownership of strongest and most accessible brands is an enduring advantage. Expand the Brand Roadmap has three pillars: capturing market share in existing markets, investing in new markets, and strengthening balance sheet.
• Made progress in all pillars in 2025, including strong wholesale performance, expanding into new markets via licensing, and restructuring convertible stock. Thrive retail stores play integral role in growth plan, with plans for a new store in Ohio.
• Fourth quarter initiatives: centralizing retail buying, improving assortments, unifying Thrive brand, launching new website, expanding store hours, and focusing on loyalty program.

Full-year revenue in 2025 was $160 million, a 1% increase over 2024. Wholesale revenue grew in core markets. In Massachusetts, wholesale revenue was flat year over year, with products in 83% of dispensaries. Maryland wholesale sales grew 3%, retail revenue increased. Illinois wholesale revenue increased 39%, retail sales flat sequentially and down 26% for the year. Delaware wholesale revenue increased 37% after adult use sales began, retail revenue tracked as expected. Wholesale represents 44% of total revenue, up from 40% in 2024.

• Primary growth drivers in 2026 include continued wholesale penetration, full-year contributions from Delaware's adult use market, and revenue from new Ohio dispensary. Aim to move up distribution timeline in Pennsylvania and New York. Growth strategies don't depend on federal reform. Creative M&A remains an active avenue. New initiatives in 2026 include personalizing loyalty program, launching Thrive Retail app, and increasing internalization of Merrimed-produced brands in stores.

Q: Follow up on Illinois retail revenue, price compression, etc.

A: Still see price compression in Illinois but market stabilizing.

Q: Details on Illinois and Massachusetts total revenue.

A: Can follow up offline.

Q: Expectations for store growth in Delaware.

A: Closely working with new stores, bullish on supplying new stores.

Q: Ohio store opening timeline, Upper Marlboro growth.

A: Ohio store to open this year, Upper Marlboro growth sustainable.

Q: M&A strategy, control of assets in New York and Pennsylvania.

A: Actively in M&A, no control on paper now but may negotiate later.

Q: Pennsylvania and New York growth in 2026.

A: New York operation hoped to be up and running by end of year, Pennsylvania approval out of control.

Q: Penetration in core markets for growth.

A: Tremendous opportunity to go wider and deeper with customers.

Q: Refi impact on interest expense.

A: Approximately 800,000 annual increase in interest expense