Trulieve Cannabis Corp. reported $74 million of free cash flow for the first half of 2026, pairing substantial cash generation with the company’s landmark move to the New York Stock Exchange and a restructuring that significantly changed the composition of its reported business. The Tallahassee, Florida-based medical-cannabis operator ended June with $325 million in cash, providing a sizable liquidity reserve as it expands in medical markets and adjusts to life as an NYSE-listed company.

For the second quarter, Trulieve generated $53 million of cash from operating activities and spent $21 million on capital expenditures, producing $32 million of free cash flow under the company’s non-GAAP definition. Across the first six months, operating cash flow was approximately $109 million and capital expenditures totaled about $35 million. First-half free cash flow consequently reached $74 million, compared with approximately $100 million in the corresponding period of 2025.

The year-over-year decline in free cash flow accompanied lower revenue and operating cash flow, but the absolute level remains notable for a cannabis operator navigating a capital-intensive production and retail model. Free cash flow gives Trulieve resources that can be directed toward store openings, cultivation capacity, debt obligations, strategic investments or share repurchases without requiring equivalent new external financing. The measure is not defined under generally accepted accounting principles and excludes some uses of cash, meaning it should be evaluated together with the company’s full cash-flow statement and balance sheet.

Second-quarter revenue totaled $271 million, down 10% from $302 million a year earlier and 6% from $287 million in the first quarter. Retail operations generated 94% of quarterly sales, or about $255 million. Gross profit was $162 million, compared with $183 million in the year-earlier period, while the gross margin held at 60%, one percentage point below the prior-year quarter and one point above the first quarter of 2026.

Those comparisons are complicated by Trulieve’s June 3 deconsolidation of Harvest, a group of operations serving markets that permit both medical and adult-use cannabis. Second-quarter reported results included Trulieve and Harvest through the deconsolidation date, followed by only Trulieve’s medical operations for the remainder of June. The company identified $222 million of second-quarter revenue as medical-only revenue, a figure that management said provides a more relevant baseline for the post-transaction company.

The restructuring placed Harvest’s mixed-use businesses under the control of an independent third-party investor. Harvest encompasses operations in Arizona, Connecticut, Maryland and Ohio, with 34 dispensaries and approximately 500,000 square feet of production capacity. Trulieve retains a 90% economic interest, but no longer consolidates Harvest’s financial results because it does not control the entity for accounting purposes. The continuing Trulieve group is centered on medical-only operations in Florida, Georgia, Pennsylvania and West Virginia, as well as conditional license positions in Alabama and Texas.

The transaction created a sharp divergence between Trulieve’s GAAP and adjusted earnings. The company reported a net loss attributable to common shareholders of $406 million, or $2.10 per diluted share, compared with a $14 million loss a year earlier. Trulieve attributed $407 million of the quarter’s impact to the Harvest deconsolidation and related equity investment. Operating expenses rose to $533 million from $130 million, largely reflecting transaction effects and other adjustments rather than the recurring cost structure alone.

After excluding nonrecurring charges, asset impairments, disposals, the unconsolidated entity, the deconsolidation transaction and discontinued operations, Trulieve reported adjusted net income of $20 million, or $0.11 per diluted share. The company had recorded an adjusted net loss of $8 million, or $0.04 per share, in the second quarter of 2025. Adjusted net income also totaled $20 million in the first quarter of 2026, leaving the first-half result at $41 million after rounding.

Adjusted earnings before interest, taxes, depreciation and amortization were $98 million, down from $111 million a year earlier and $100 million in the preceding quarter. The adjusted EBITDA margin was 36%, compared with 37% in the second quarter of 2025 and 35% in the first quarter. For the first half, adjusted EBITDA reached $198 million on revenue of $558 million, versus $220 million on $600 million of revenue a year earlier.

The operating data showed a business retaining considerable retail scale despite the reporting transition. Trulieve said it sold more than 12.9 million branded products through its branded retail network during the quarter. Customer traffic was comparable with the prior year, while units sold increased 1%. In medical-only markets, traffic rose 6% and units increased 8% from the first quarter. Its rewards program reached 1.1 million members, with customer retention of 69% across the broader retail platform and 78% in medical-only markets.

Trulieve operated 207 consolidated retail dispensaries and approximately 3.5 million square feet of cultivation and processing capacity at the time of its report. Florida remains the center of the medical-only business, with 170 dispensaries and five cultivation facilities. The company also operates 21 dispensaries in Pennsylvania, 10 in West Virginia and six in Georgia. It opened four Florida locations during the second quarter—in Belleview, Boca Raton, Lutz and Tallahassee—and subsequently added a dispensary in Marco Island.

The quarter’s central capital-markets development was the June 10 start of trading in Trulieve’s subordinate voting shares on the NYSE under the ticker TRLV. The company previously traded on the Canadian Securities Exchange under TRUL and on the OTCQX market under TCNNF. Trulieve characterized itself as the first U.S. cannabis company to secure a listing on a major U.S. exchange, a distinction that could broaden the pool of potential shareholders, improve trading liquidity and raise the company’s profile among institutional investors.

The listing followed federal action in April 2026 that reclassified state-licensed medical marijuana to Schedule III and created a pathway for qualifying medical-marijuana businesses to register with the Drug Enforcement Administration. Trulieve said it registered its state-licensed medical facilities through the applicable DEA process. It also separated the mixed-use Harvest operations from its consolidated medical-only business to support the exchange listing.

Although the NYSE move marks a significant change in market access, it does not eliminate the industry’s regulatory complexities. Trulieve remains exposed to differences among state programs, the timing and interpretation of federal rules, licensing requirements and the risk that expected reforms do not proceed as anticipated. The company also retains a large economic interest in Harvest, leaving its value connected to mixed-use cannabis markets even though Harvest is no longer consolidated.

The balance sheet illustrates both the company’s cash resources and the financial consequences of the restructuring. Cash and cash equivalents increased to $325.4 million at June 30 from $255.5 million at the end of 2025. Total assets fell to approximately $2.08 billion from $2.70 billion, reflecting the removal of Harvest assets and other changes. Trulieve recorded a $152.5 million investment in Harvest, while intangible assets declined to $300.4 million from $798.4 million and goodwill decreased to $325.6 million from $483.9 million.

Trulieve reported approximately $289 million of debt at an average interest rate of 9.6%. Long-term borrowings consisted principally of about $89 million of notes payable and $196 million of private-placement notes, in addition to a small current portion. Its quarter-end cash position exceeded stated debt, although lease obligations, tax positions and other liabilities remain important elements of the overall capital structure.

The company has authorized a share repurchase program covering up to the lesser of $50 million or 8,495,038 subordinate voting shares. The authorization gives management another potential use for its cash but does not require repurchases. Deployment will depend on share valuation, operating needs, expansion spending, regulatory developments and other capital-allocation priorities. For an issuer that has only recently entered the NYSE, any repurchase activity would also be watched as an indicator of management’s assessment of the company’s valuation and liquidity.

Management reduced its 2026 operating cash-flow target to at least $225 million from $250 million because of the Harvest deconsolidation. At the same time, it increased its expected capital-expenditure ceiling to $95 million from $85 million to support investment in growth markets. The combination implies continued positive free cash generation if the operating target is achieved, although actual results will depend on working capital, tax payments, growth spending and the timing of regulatory approvals.

For the third quarter, Trulieve expects reported revenue to be comparable to the $222 million of medical-only revenue identified in the second quarter. That guidance signals a step down from the $271 million consolidated second-quarter figure because the latter still included Harvest through June 3. Investors evaluating sequential growth will therefore need to use the medical-only baseline rather than treat the expected decline in reported sales as entirely operational.

Georgia is one of Trulieve’s principal near-term expansion opportunities. The state broadened its medical program on July 1 by adding qualifying conditions and allowing additional product forms, including inhalable flower and vapor products. Trulieve also began shipping approved medical-cannabis products to licensed independent pharmacies, extending distribution beyond its own six Georgia dispensaries. The company has said it plans a seventh store in Dunwoody and operates under one of Georgia’s two Tier 1 production licenses.

Texas represents a potentially larger but less certain growth avenue. Trulieve received a conditional medical license in December 2025 and expects that a final award could arrive in 2026. The state’s population and developing medical program could support a significant operation, but revenue contributions depend on final licensing, facility development, patient enrollment and the pace at which regulators implement program expansion.

Pennsylvania offers a different kind of optionality. Trulieve already has a sizable medical presence there, operating 21 dispensaries and three production sites. The company said it sold wholesale products into 85% of the state’s dispensaries during the second quarter. Any eventual adoption of adult-use sales could enlarge the addressable market, though such a change would also raise questions about how those operations fit within the medical-only structure established for the NYSE listing.

Tax treatment remains another material variable. Trulieve said Schedule III treatment for state-licensed medical operations removed the application of Internal Revenue Code Section 280E to those operations on a forward basis. Section 280E has historically prevented cannabis businesses from deducting ordinary operating expenses because marijuana-related activity was treated as trafficking in a controlled substance. The company continues to challenge the application of 280E for tax years beginning in 2019.

At June 30, Trulieve reported an uncertain tax-position liability of $598 million, with $583 million related to that challenge. Its balance sheet also included $102 million associated with amended-return refund checks, potential tax underpayments if 280E applies and accrued interest. Management has said retroactive relief could produce a one-time gain, but the timing and ultimate resolution remain uncertain. The size of the position makes it a consequential factor when assessing reported liabilities and future cash obligations.

The second-quarter report therefore presents two parallel views of Trulieve. On a GAAP basis, the Harvest transaction produced a very large loss and reduced the consolidated asset and revenue base. On an adjusted and cash basis, the company remained profitable, maintained a 36% adjusted EBITDA margin and generated $74 million of first-half free cash flow. Neither view alone captures the full economics of the reorganized company.

The coming quarters will clarify the durable revenue, margin and cash-flow profile of Trulieve’s medical-only consolidated operations. They will also test whether the NYSE listing translates into deeper liquidity and broader institutional ownership, whether Georgia and Texas can become meaningful growth engines, and how management balances expansion against debt reduction and repurchases. For now, the first results released after the listing establish strong cash generation as the principal financial counterweight to lower reported sales and restructuring-driven accounting volatility.