Document

This management discussion and analysis (“MD&A”) of the financial condition and results of operations of Cresco Labs Inc. (the “Company,” “Cresco Labs,” “we,” or “our”) is dated November 7, 2025 and has been prepared for the three and nine months ended September 30, 2025 and 2024. It is supplemental to, and should be read in conjunction with, the Company’s audited Consolidated Financial Statements and accompanying notes as of and for the years ended December 31, 2024 and 2023, which were previously filed on SEDAR+ and EDGAR, and the Company's unaudited condensed interim consolidated financial statements and accompanying notes as of and for the three and nine months ended September 30, 2025 and 2024. The Company’s financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). Financial information presented in this MD&A is presented in United States (“U.S.”) dollars (“USD” or “$”) unless otherwise indicated.

The Company has provided certain supplemental non-GAAP financial measures in this MD&A. Where the Company has provided such non-GAAP financial measures, we have also provided a reconciliation to the most comparable GAAP financial measure. Please see the information under the heading “Non-GAAP Financial Measures” for additional information on the Company’s use of non-GAAP financial measures.

This MD&A contains certain “forward-looking statements” and certain “forward-looking information” as defined under applicable U.S. securities laws and Canadian securities laws. Please refer to the discussion of forward-looking statements and information set out under the heading “Cautionary Statement Regarding Forward-Looking Information,” located at the beginning of the Company’s Annual Information Form for the year ended December 31, 2024, filed on SEDAR+ and EDGAR. As a result of many factors, the Company’s actual results may differ materially from those anticipated in these forward-looking statements and information. Please refer to the discussion of risks and uncertainties set out under the heading “Risk Factors,” located within the Company’s Annual Information Form for the year ended December 31, 2024, filed on SEDAR+ and EDGAR.

Incorporated on July 6, 1990, in the Province of British Columbia, Cresco Labs (“the Company”) is licensed to grow, manufacture, and sell cannabis and cannabis-based products in several U.S. states. The Company’s headquarters is located at 600 W. Fulton Street, Suite 800, Chicago, IL 60661, and its registered office is at 666 Burrard Street, Suite 2500, Vancouver, BC V6C 2X8. As of September 30, 2025, the Company had approximately 2,900 employees.

Cresco Labs primarily engages in the cultivation of medical-grade cannabis, the production of cannabis-derived medical-grade products, and their distribution to consumers in legalized cannabis markets in the United States, whether for medical or adult-use. The Company strives to provide consumers with high-quality and consistent cannabis-based products, focusing on regulatory adherence while developing condition-specific cannabis strains and non-invasive delivery methods. These non-invasive delivery methods, which are alternatives to smoke inhalation, aim to deliver controlled-dosage medicinal cannabis relief to qualified patients and consumers in legalized cannabis markets in the United States.

As of November 7, 2025, the Company operates a total of seventy-one (71) dispensaries and thirteen (13) cultivation and production facilities across eight (8) states, where cannabis use, medical or both medical and adult-use, has been approved by state and local regulatory bodies. Of the states in which we operate, California, Illinois, Massachusetts, Michigan, New York, and Ohio have adult-use cannabis programs.


State	Adult-Use and Medical Dispensaries	Adult-Use Dispensaries	Medical Dispensaries	Cultivation and Production Facilities
California	—	—	—	1
Florida	—	—	30	1
Illinois	5	5	—	3
Massachusetts1	2	1	1	3
Michigan	—	—	—	1
New York	—	—	3	1
Ohio	6	—	—	1
Pennsylvania	—	—	18	2
Total	13	6	52	13

The Company operates its dispensaries under the brand, Sunnyside*®1. Our Sunnyside* dispensaries are home for a judgement-free cannabis shopping experience, where all are welcome to explore, discover, and purchase a wide array of high-quality products. The Company's portfolio of owned cannabis consumer-packaged goods includes Cresco®1, High Supply®2, Mindy’sTM, Good News®2, RemediTM, Wonder Wellness Co.®2, and FloraCal® Farms2. The Company distributes and markets these products both to third-party licensed retail cannabis stores across the U.S. and to the Company’s owned retail stores.

The Company operates its business through its directly and indirectly owned subsidiaries that hold licenses and have entered into managed service agreements in the states in which they operate. For additional information on wholly-owned or effectively controlled subsidiaries and affiliates of Cresco Labs, refer to Note 2 “Summary of Significant Accounting Policies” under the heading “Basis of Consolidation” of the Company’s Unaudited Condensed Interim Consolidated Financial Statements for the three and nine months ended September 30, 2025 and 2024.

In accordance with the Canadian Securities Administrators Staff Notice 51-352 – Issuers with U.S. Marijuana-Related Activities (“Staff Notice 51-352”), information regarding the current U.S. federal regulatory environment is disclosed in the Company’s 2024 Annual MD&A filed on SEDAR+ and EDGAR under the heading “Federal Regulatory Environment,” which section is incorporated by reference herein. The Company will evaluate, monitor and reassess the disclosures contained herein, and incorporated by reference herein, and any related risks, on an ongoing basis and the same will be supplemented, amended, and communicated to investors in public filings, including in the event of government policy changes or the introduction of new or amended guidance, laws, or regulations regarding marijuana regulation.

The Company currently derives a substantial portion of its revenues from the cannabis industry in certain U.S. states, which industry is illegal under U.S. federal law. As of November 7, 2025, the Company believes its operations are in material compliance with all applicable local laws, regulations, and licensing requirements in the states in which we operate.

1The Sunnyside*® (inclusive of the stand-alone asterisk mark) and Cresco® brands maintain federal trademark registrations for websites pertaining to medical cannabis and cannabis educational services, as well as multiple state trademark registrations.

2 The High Supply®, Good News®, Wonder Wellness Co.®, and FloraCal® Farms brands maintain federal trademark registrations for apparel and multiple state trademark registrations.

For more information about risks related to the U.S. marijuana operations, refer to the discussion of risks and uncertainties set out under the heading “Risk Factors,” located within the Company’s Annual Information Form for the year ended December 31, 2024, filed on SEDAR+ and EDGAR. Additional information relating to the Company, including the Company’s Annual Information Form for the year ended December 31, 2024, is available on SEDAR+ at www.sedarplus.ca.

On October 31, 2025, the Company completed the sale of its Sonoma’s Finest cultivation facility, which was classified as held for sale as of September 30, 2025. The Company received $2.1 million in proceeds from the sale comprised of $0.4 million of cash on closing along with a $1.7 million seller note with an 8% interest rate payable over an 18-month period.

On August 20, 2025, the Company commenced an offer for a one-time stock award exchange program (the “Award Exchange Program”) to certain employee option holders (“Eligible Participants”) who held certain underwater stock options and remained employed by the Company through the completion of the Award Exchange Program. Eligible Participants with an outstanding stock option that had an exercise price equal to or greater than $2.25 or 6.62 times the closing price on the expiration date of the Award Exchange Program of September 17, 2025 or with an outstanding stock option expiring before September 30, 2030, had the option to exchange their existing options for new RSUs (“New RSUs”) with a three-year vesting period. Eligible Participants had until September 17, 2025 to elect to exchange their existing stock options. Pursuant to the Award Exchange Program, 15 eligible participants elected to exchange 8.9 million stock options for 8.9 million New RSUs. The Award Exchange Program was subject to a shareholder vote at the Company’s Annual General and Special Meeting of shareholders held on September 16, 2025. The Award Exchange Program was approved as of the meeting. On September 17, 2025, the Company granted 8.9 million New RSUs pursuant to the terms of the Option Exchange Program and the Plan. Incremental expense of $5.6 million will be recognized over the three-year vesting period of the New RSUs.

On August 13, 2025, the Company closed a refinancing of the Company’s senior secured credit facility (“Senior Secured Term Loan”). The new $325 million senior secured term loan bears an interest rate of 12.5% per annum and matures on August 13, 2030. It replaces the Company’s prior $360 million facility, reducing total debt, extending the maturity to 2030, and providing enhanced flexibility to prepay up to $125 million at a reduced premium. Proceeds from the new facility, together with cash on hand, were used to repay in full the existing term loan. The facility contains no equity or convertible features and includes customary financial and operational covenants.

On March 10, 2025, the Company announced its management services agreement (“MSAs”) with a tier 3 cultivation license in Kentucky. The agreement entitles the Company to manage and operate a cultivation facility with up to 25,000 square feet of canopy, establishing the Company as one of only two operators of Kentucky’s coveted Tier 3 cultivation licenses. As of June 30, 2025, the Company has entered into three (3) MSAs with KSKYAPP, LLC, holder of a Kentucky cultivation license, BSRKYAPP, LLC, holder of a Kentucky dispensing license, and RSKYAPP, LLC, holder of a Kentucky processing license.

use cannabis sales. Revenue from the wholesale of cannabis products represents the remaining 35.8% and 34.5%, respectively, for the same periods. For the nine months ended September 30, 2025 and 2024, approximately 66.2% and 64.6%, respectively, of our revenue was derived from Company-owned retail dispensary locations. Retail revenue includes medical and adult-use cannabis sales. Revenue from the wholesale of cannabis products represents the remaining 33.8% and 35.4%, respectively, for the same periods.

•Other operating expenses: Include all costs associated with the facility itself, including insurance, community benefit fees, professional services related to licenses and compliance, uniforms, employee training programs, tracking and inventory management systems, product testing, business development, information technology, license renewal fees, and certain excise taxes.

In addition to market fluctuations, cannabis costs are affected by various state regulations that limit the sourcing and procurement of cannabis products. The changes in regulatory environments may create fluctuations in gross profit over comparative periods. Additionally, gross profit may include the cost of inventory required to be marked to fair value as part of purchase accounting in a business combination.

SG&A consist of employee salary and benefit costs, depreciation and amortization, professional and legal fees, advertising and marketing, office and retail operation costs, share-based compensation, certain excise taxes, technology, insurance, security, travel and entertainment, and rent expense. SG&A is a component of Total operating expenses as discussed in the “Selected Financial Information” section below.


	Three Months Ended September 30,				Nine Months Ended September 30,
($ in thousands)	2025		2024		2025		2024

Salaries and benefits	$	31,282	$	31,534	$	98,465	$	95,872
Depreciation and amortization	5,636		5,702		15,212		16,313
Professional and legal fees	3,163		4,835		11,094		13,947
Occupancy and facility expenses	6,958		7,131		20,862		21,806

Selling and marketing expense	2,861		3,157		7,996		7,465
Share-based compensation	1,891		2,202		5,998		8,670

Office and general expense	2,178		2,291		7,340		7,493







Other expense	5,198		7,923		15,091		18,656
Total SG&A	$	59,167	$	64,775	$	182,058	$	190,222

Other expense, net consists mainly of recurring gains (losses) on investments, foreign currency, loss on provision for loan receivables, gain (loss) on disposition of assets, as well as ad hoc expenses, such as gain (loss) on lease termination, and loss on debt extinguishment. These gains (losses) do not generally correlate to revenue. Other expense, net is added to Interest expense, net, to sum to Total other expense, net discussed in the “Selected Financial Information” section below.


	Three Months Ended September 30,				Nine Months Ended September 30,
($ in thousands)	2025		2024		2025		2024

Tax receivable agreement expense	$	—	$	3	$	194	$	(60,667)
Loss on debt extinguishment	(16,363)		—		(16,363)		—
Loss on disposal of assets	(1,422)		(182)		(2,227)		(658)
Gain (loss) on provision - loan receivable	27		(127)		(88)		(262)


Gain (loss) on foreign currency	227		(189)		(415)		230




Loss on investments held at fair value	(12)		(13)		(55)		(78)

Other income, net	4,181		503		5,073		2,778
Other expense, net	$	(13,362)	$	(5)	$	(13,881)	$	(58,657)

Interest expense, net consists mainly of interest on notes and loans payable, financing activities, leases, accretion of debt discount and amortization of deferred financing fees, and interest income. Interest expense, net is included in Total other expense, net discussed in the “Selected Financial Information” section below.


	Three Months Ended September 30,				Nine Months Ended September 30,
($ in thousands)	2025		2024		2025		2024

Interest expense – notes and loans payable	$	(10,354)	$	(9,711)	$	(30,288)	$	(28,922)
Interest expense – financing activities	(2,809)		(2,875)		(8,478)		(8,680)
Accretion of debt discount and amortization of deferred financing fees	(943)		(1,261)		(3,413)		(3,654)
Interest expense – leases	(731)		(786)		(2,215)		(2,374)
Interest (expense) income - deferred and contingent consideration	(428)		(1,167)		62		(1,520)
Interest income	699		771		2,385		2,265
Other interest (expense) income	(1)		13		(6)		(15)
Interest expense, net	$	(14,567)	$	(15,016)	$	(41,953)	$	(42,900)

The Company is classified for U.S. federal income tax purposes as a U.S. corporation under Section 7874 of the Internal Revenue Code (“IRC”). The Company is subject to income taxes in the jurisdictions in which it operates and, consequently, income tax expense is a function of the allocation of taxable income by jurisdiction and the various activities that impact the timing of taxable events. As the Company operates in the cannabis industry, the Company is subject to the limits of IRC Section 280E for U.S. federal income tax purposes as well as state income

The Company reports results of operations of its affiliates from the date that control commences, either through the purchase of the business, through a management agreement, or through other arrangements that grant such control. The following selected financial information includes only the results of operations after the Company established control of its affiliates. Accordingly, the information included below may not be representative of the results of operations if such affiliates had included their results of operations for the entire reporting period. For discussion of our fiscal 2024 results of operations and comparison with fiscal 2023 results of operations, please refer to “Management’s Discussion and Analysis of Financial Conditions and Results of Operations” filed on SEDAR+ and EDGAR on March 14, 2025.


($ in thousands)	2025						2024								2023
	Q3		Q2		Q1		Q4		Q3		Q2		Q1		Q4
Revenues, net	$	164,913	$	163,624	$	165,757	$	175,909	$	179,783	$	184,356	$	184,295	$	188,237
Income from operations	17,828		16,141		13,589		19,406		26,343		32,380		29,163		27,099
Net (loss) income attributable to Cresco Labs Inc.	(17,054)		(16,334)		(14,432)		(4,372)		(10,541)		(54,332)		(5,193)		2,635
Basic and Diluted EPS	$	(0.05)	$	(0.05)	$	(0.04)	$	(0.01)	$	(0.03)	$	(0.16)	$	(0.02)	$	0.01


	Three Months Ended September 30,
($ in thousands)	2025		2024		$ Change		% Change
Revenues, net	$	164,913	$	179,783	$	(14,870)	(8.3)	%
Cost of goods sold	85,553		86,345		(792)		(0.9)	%
Gross profit	79,360		93,438		(14,078)		(15.1)	%
Selling, general, and administrative	59,167		64,775		(5,608)		(8.7)	%
Impairment loss	2,365		2,320		45		1.9	%
Total operating expenses	61,532		67,095		(5,563)		(8.3)	%
Total other expense, net	(27,929)		(15,021)		(12,908)		85.9	%
Income tax expense	(11,867)		(19,016)		7,149		(37.6)	%
Net loss1	$	(21,968)	$	(7,694)	$	(14,274)	185.5	%
1Net loss includes amounts attributable to non-controlling interests.

Revenue for the three months ended September 30, 2025, decreased $14.9 million, or 8.3%, compared to the three months ended September 30, 2024. The decrease in revenue was primarily driven by price compression and increased competition in the Illinois, Florida, and Pennsylvania markets compared to the prior year period. The decrease was partially offset by retail growth in Ohio due to legalizing adult-use of cannabis compared to the prior year period.

Gross profit decreased by $14.1 million, or 15.1%, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. The decrease in gross profit was primarily driven by lower sales in Illinois, Pennsylvania, and Florida offset by increased sales in Ohio. As a percentage of revenue, gross profit was 48.1% and 52.0% for the three months ended September 30, 2025 and September 30, 2024, respectively. The decrease in gross profit as a percentage of revenue was driven by lower sales from higher margin states from increased competition, and price compression.

Total operating expenses for the three months ended September 30, 2025, decreased $5.6 million, or 8.3% compared to the three months ended September 30, 2024. The decrease was primarily attributable to a reduction in SG&A which was driven by to a reduction in professional and legal fees and other expenses.

Total other expense, net for the three months ended September 30, 2025, increased $12.9 million, or 85.9%, compared to the three months ended September 30, 2024. The increase was primarily attributable to a $16.4 million loss on debt extinguishment recognized during the third quarter of 2025 as a result of the company retiring its Senior Loan, partially offset by a gain recognized on a fair value adjustment of an intangible asset.


	Nine Months Ended September 30,
($ in thousands)	2025		2024		$ Change		% Change
Revenues, net	$	494,294	$	548,434	$	(54,140)	(9.9)	%
Costs of goods sold	253,047		268,006		(14,959)		(5.6)	%
Gross profit	241,247		280,428		(39,181)		(14.0)	%
Selling, general, and administrative	182,058		190,222		(8,164)		(4.3)	%
Impairment loss	11,630		2,320		9,310		401.3	%
Total operating expenses	193,688		192,542		1,146		0.6	%
Total other expense, net	(55,834)		(101,557)		45,723		(45.0)	%
Income tax expense	(42,820)		(47,257)		4,437		(9.4)	%
Net loss1	$	(51,095)	$	(60,928)	$	9,833	(16.1)	%
1Net loss includes amounts attributable to non-controlling interests.

Revenue for the nine months ended September 30, 2025, decreased $54.1 million, or 9.9%, compared to the nine months ended September 30, 2024. The decrease in revenue was primarily driven by increased competition, price compression, and price discounting in the Illinois, Pennsylvania, and Florida markets. This decrease was partially offset by retail growth in Ohio due to legalizing adult-use of cannabis.

Gross profit decreased by $39.2 million, or 14.0%, for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024. The decrease in gross profit was primarily driven by lower sales in Illinois, Pennsylvania, and Florida offset by offset by increased sales in Ohio. As a percentage of revenue, gross profit was 48.8% and 51.1% for the nine months ended September 30, 2025 and September 30, 2024, respectively. The decrease in gross profit as a percentage of revenue was driven by lower sales from higher margin states from increased competition, and price compression.

Total operating expenses for the nine months ended September 30, 2025, increased $1.1 million, or 0.6%, compared to the nine months ended September 30, 2024. The increase was primarily attributable to $11.6 million of impairment charges recorded during the nine months ended September 30, 2025 related to the Company’s plans to sell its Cub City and Sonoma’s Finest cultivation facilities in California. The increase was partially offset by a reduction in SG&A of $8.2 million, due to a decrease in share based compensation and professional and legal fees.

Total other expense, net for the nine months ended September 30, 2025, decreased $45.7 million, or 45.0%, compared to the nine months ended September 30, 2024. The decrease was primarily attributable to an elevated tax receivable agreement expense in 2024 related to the Company’s IRC Section 280E position, offset by a $16.4 million loss on debt extinguishment recognized during the third quarter of 2025 as a result of the Company retiring its Senior Loan.

Net loss for the nine months ended September 30, 2025, decreased $9.8 million compared to the nine months ended September 30, 2024. The decrease in net loss was primarily driven by the decrease in other expense, net discussed above. Partially offset by the reduction in gross profit discussed above.

Earnings before interest, taxes, depreciation, and amortization (“EBITDA”) and Adjusted EBITDA (defined below) are non-GAAP financial measures and do not have standardized definitions under GAAP and may not be comparable to similar measures presented by other issuers. The Company has provided the non-GAAP financial measures, which are not calculated or presented in accordance with GAAP, as supplemental information and in addition to the financial measures that are calculated and presented in accordance with GAAP. These supplemental non-GAAP financial measures are presented because management has evaluated the financial results both including and excluding the adjusted items and believe that the supplemental non-GAAP financial measures presented provide additional perspectives and insights when analyzing the core operating performance of the business. This provides useful information for investors, allowing them to gain a clearer understanding of the Company’s operating performance and make more informed investment decisions. These supplemental non-GAAP financial measures should not be considered superior to, as a substitute for, or as an alternative to and should only be considered in conjunction with, the GAAP financial measures presented herein. Accordingly, the Company has included below reconciliations of the supplemental non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP.


	Three Months Ended September 30,								Nine Months Ended September 30,
($ in thousands)	2025		2024		$ Change		% Change2		2025		2024		$ Change		% Change
Net loss1	$	(21,968)	$	(7,694)	$	(14,274)	185.5	%	$	(51,095)	$	(60,928)	$	9,833	(16.1)	%
Depreciation and amortization	12,858		14,932		(2,074)		(13.9)	%	37,953		45,192		(7,239)		(16.0)	%
Interest expense, net	14,567		15,016		(449)		(3.0)	%	41,953		42,900		(947)		(2.2)	%
Income tax expense	11,867		19,016		(7,149)		(37.6)	%	42,820		47,257		(4,437)		(9.4)	%
EBITDA (non-GAAP)	$	17,324	$	41,270	$	(23,946)	(58.0)	%	$	71,631	$	74,421	$	(2,790)	(3.7)	%
Other expense, net	13,362		5		13,357		nm		13,881		58,657		(44,776)		(76.3)	%
Fair value mark-up for acquired inventory	—		123		(123)		100.0	%	—		123		(123)		100.0	%
Adjustments for acquisition and other non-core costs	4,443		4,759		(316)		(6.6)	%	12,192		12,358		(166)		(1.3)	%
Impairment loss	2,365		2,320		45		1.9	%	11,630		2,320		9,310		401.3	%
Share-based compensation	2,311		2,791		(480)		(17.2)	%	7,580		10,459		(2,879)		(27.5)	%
Adjusted EBITDA (non-GAAP)	$	39,805	$	51,268	$	(11,463)	(22.4)	%	$	116,914	$	158,338	$	(41,424)	(26.2)	%

Adjusted EBITDA, a non-GAAP financial measure, is defined as Net loss, excluding depreciation and amortization; interest expense, net; income taxes; Other expense, net; adjustments for acquisition and other non-core costs; and shares-based compensation. Non-core costs include non-operating costs, such as costs related to acquisitions and restructuring, unique legal expenses, and other expenses that are mostly one-time in nature. Adjusted EBITDA was $39.8 million for the three months ended September 30, 2025, compared to $51.3 million for the three months ended September 30, 2024. The decrease in adjusted EBITDA of $11.5 million is primarily due to a decrease in gross profit. Adjusted EBITDA was $116.9 million for the nine months ended September 30, 2025, compared to $158.3 million for the nine months ended September 30, 2024. The decrease in adjusted EBITDA of $41.4 million is primarily driven by a decrease in gross profit.

Our primary sources of liquidity are cash and cash equivalents from the operations of our business, debt, and equity offerings. Our principal uses of cash include working capital related items, capital expenditures, debt, and tax related payments. Additionally, we may use cash for acquisitions and other investing or financing activities.

As of September 30, 2025, the Company held $45.4 million in Cash and cash equivalents and $36.5 million in Restricted cash, included in both Restricted cash and Other non-current assets on the Unaudited Condensed Interim Consolidated Balance Sheets, compared to $137.6 million in Cash and Cash equivalents, and $6.7 million in Restricted cash at December 31, 2024.

The Company is generally able to access private and/or public financing through, but not limited to, institutional lenders, such as the agreement for the Senior Secured Term Loan of $325.0 million, which closed on August 13, 2025, that bears an interest rate of 12.5% and matures on August 13, 2030. This refinancing, along with existing cash on hand, was used to repay the Company’s prior facility of $360.0 million, reducing total debt. JDRC Ellenville, LLC (“Ellenville”), an indirect subsidiary of the Company, entered into a $25.3 million loan on September 26, 2023, secured by real estate and improvements thereto. In addition, the Company has received and has access to private loans through individual investors and private and public equity raises. As of September 30, 2025, the Company was in compliance with all covenants.

The Company expects cash on hand and cash flows from operations, along with the private and/or public financing options discussed above, will be adequate to meet capital requirements and operational needs for the next twelve months. We cannot guarantee this will be the case, or that our assumptions regarding revenues and expenses underlying this belief will be accurate. If, in the future, we require more liquidity than contemplated, we may need to raise additional funds through debt and/or equity offerings. Adequate funds may not be available when needed or may not be available on terms favorable to us. If additional funds are raised by issuing equity securities, dilution to existing shareholders may result. If we raise additional funds by obtaining loans from third parties, the terms of those financing arrangements may include negative covenants or other restrictions on our business that could impair our operational flexibility and would also require us to fund additional interest expense. If funding is insufficient at any time in the future, we may be unable to develop or enhance our products or services, take advantage of business opportunities, or respond to competitive pressures, any of which could have a material adverse effect on our business, financial condition, and results of operations.

Net cash provided by operating activities was $45.5 million for the nine months ended September 30, 2025, a decrease of $57.5 million compared to $103.0 million of net cash provided by operating activities during the nine months ended September 30, 2024. The $57.5 million decrease was primarily attributable to a reduction in our income taxes payable related to our updated position on 280E, an increase in interest payments due to an accelerated payment on interest in the third quarter of 2025, as well as improvements in working capital management, including a net benefit from improved collections of accounts receivables, partially offset by inventory buildup in certain states.

Net cash used in investing activities was $27.5 million for the nine months ended September 30, 2025, an increase of $5.2 million compared to $22.2 million during the nine months ended September 30, 2024. The increase in net cash used in investing activities was primarily driven by an increase in capital expenditures, partially offset by a decrease in operating license intangibles expenditures, acquisition related considerations, and receipts from loans receivables.

Net cash used in financing activities was $80.3 million for the nine months ended September 30, 2025, an increase of $50.9 million compared to $29.4 million for the nine months ended September 30, 2024. The increase was primarily driven by the refinancing of our Senior Loan, offset by the proceeds from our Senior Secured Term Loan as well as a decrease in distributions to non-controlling interest redeemable unit holders and other members due to our updated tax position on 280E.


($ in thousands)	< 1 Year		1 to 3 Years		3 to 5 Years		> 5 Years		Total
Accounts payable & Accrued liabilities	$	60,949	$	—	$	—	$	—	$	60,949
Deferred and contingent consideration, short-term	3,901		—		—		—		3,901
Operating leases liabilities	30,478		60,128		71,543		103,306		265,455
Finance lease liabilities	5,121		10,372		9,593		10,026		35,112
Deferred and contingent consideration, long-term	—		5,772		—		—		5,772
Short-term borrowings and Long-term notes and loans payable	20,822		29,345		364,457		85,685		500,309
Tax receivable agreement liability	6,508		10,748		11,301		50,592		79,149
Other long-term liabilities	—		1,000		—		—		1,000
Total obligations as of September 30, 2025	$	127,779	$	117,365	$	456,894	$	249,609	$	951,647

The Company is exposed in varying degrees to a variety of financial instrument related risks. The Board of Directors and Company management mitigate these risks by assessing, monitoring, and approving the Company’s risk management processes. See Note 14 “Financial Instruments and Financial Risk Management” in the Unaudited Condensed Interim Consolidated Financial Statements for the Company’s disclosures on financial instruments and financial risk management.


Securities						Number of Shares (in thousands)

Super Voting Shares						500
Subordinate Voting Shares1						340,487
Proportionate Voting Shares2						16,634

Special Subordinate Voting Shares3						2
Redeemable Units4						87,299