| Segment reporting |
Segment reporting The Company operates through two distinct reportable segments: (i) Domestic Operations and (ii) International Operations. This segmentation reflects the point at which the Company’s business units no longer share similar economic characteristics and differ significantly in key areas, including: (a) the nature of cultivation and manufacturing processes; (b) the class of customer for products and services; (c) distribution methods and (d) the regulatory environments in which they operate. In addition, this segmentation reflects the manner in which the Company’s CODM, its CEO, allocates resources and evaluates performance as well as the manner in which the Company’s internal financial reporting is structured. The Company’s reportable segments generate revenues from the cultivation, production and distribution of cannabis products. The Company’s Domestic Operations are vertically integrated in the majority of the states in which the Company operates and derives the majority of its revenues from retail sales. In contrast, the Company’s International Operations is organized on a country-level basis, has centralized cultivation facilities in Portugal and Canada and derives the majority of its revenue from wholesale sales. The Company’s CODM assesses the performance of and allocates resources to each reportable segment using Adjusted EBITDA3 as the primary measure of profitability. The CODM also reviews significant segment expenses within these measures, which consist primarily of Cost of goods sold and Total operating expenses. The accounting policies for each reportable segment are consistent with those described in Note 3 — Significant accounting policies. There are no intersegment sales or transfers between the Company’s reportable segments. Corporate overhead costs are primarily incurred within the Domestic Operations segment and are not allocated to the International Operations segment, consistent with how the CODM evaluates segment performance. The following table presents Adjusted EBITDA by reportable segment as of December 31, 2025, 2024 and 2023, and the reconciliation of such non-GAAP financial measure to the most directly comparable GAAP measure, being income (loss) from continuing operations for the applicable periods: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Years Ended December 31, | | | Domestic | | International(1) | | Total | | | 2025 | | 2024 | | 2023 | | 2025 | | 2024 | | 2023 | | 2025 | | 2024 | | 2023 | Loss before Benefit (provision) for income taxes | | $ | (73,554) | | | $ | (90,970) | | | $ | (101,097) | | | $ | (4,660) | | | $ | (22,388) | | | $ | (28,374) | | | $ | (78,214) | | | $ | (113,358) | | | $ | (129,471) | | Total other expense (income), net | | 107,653 | | | 140,357 | | | 169,959 | | | (3,989) | | | (2,256) | | | (471) | | | 103,664 | | | 138,101 | | | 169,488 | | | | | | | | | | | | | | | | | | | | | Depreciation and amortization(2) | | 171,772 | | | 203,076 | | | 173,581 | | | 24,834 | | | 28,384 | | | 22,012 | | | 196,606 | | | 231,460 | | | 195,593 | | Other adjustments (3) | | 45,513 | | | 44,899 | | | 63,047 | | | 7,105 | | | 2,183 | | | 1,502 | | | 52,618 | | | 47,082 | | | 64,549 | | Adjusted EBITDA | | $ | 251,384 | | | $ | 297,362 | | | $ | 305,490 | | | $ | 23,290 | | | $ | 5,923 | | | $ | (5,331) | | | $ | 274,674 | | | $ | 303,285 | | | $ | 300,159 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (1) The Company is exposed to foreign currency exchange risk due to fluctuations between the functional currencies of its international subsidiaries and the USD. Additionally, the translation of these subsidiaries’ operating results into USD for reporting purposes introduces further exposure. While these fluctuations are not material to the Company’s consolidated operating results, they may impact the comparability of the Company’s segmented results across quarters and year-over-year. | (2) Depreciation and amortization includes depreciation and amortization from cost of goods sold and operating expenses. | (3) Other adjustments for the year ended December 31, 2025 primarily include costs related to share-based compensation expense $35.7 million, restructuring costs $3.3 million, adult use campaign and political initiatives $2.7 million as well as acquisition, transaction, and other non-recurring costs $10.9 million. Other adjustments for the year ended December 31, 2024 primarily include costs related to share-based compensation expense $25.7 million, restructuring costs $9.0 million as well as acquisition, transaction, and other non-recurring costs $12.4 million. Other adjustments for the year ended December 31, 2023 primarily include costs related to share-based compensation expense $20.0 million, restructuring costs $14.1 million as well as acquisition, transaction, and other non-recurring costs of $30.4 million. |
(3) Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization, adjusted for share-based compensation expense and other adjustments related to restructuring costs, adult use campaign and political initiatives, as well as acquisition, transaction and other non-recurring costs. The following table presents selected financial information by reportable segment for the years ended December 31, 2025, 2024 and 2023: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Years Ended December 31, | | | Domestic | | International(1) | | Total | | | 2025 | | 2024 | | 2023 | | 2025 | | 2024 | | 2023 | | 2025 | | 2024 | | 2023 | Revenues, net: | | | | | | | | | | | | | | | | | | | Retail revenues | | $ | 868,732 | | | $ | 994,715 | | | $ | 1,075,103 | | | $ | 53,850 | | | $ | 38,047 | | | $ | 21,071 | | | $ | 922,582 | | | $ | 1,032,762 | | | $ | 1,096,174 | | Wholesale revenues | | 226,334 | | | 232,491 | | | 197,640 | | | 105,905 | | | 63,078 | | | 37,006 | | | 332,239 | | | 295,569 | | | 234,646 | | Management fee income | | 591 | | | 1,543 | | | 2,625 | | | 12,723 | | | 4,425 | | | 2,930 | | | 13,314 | | | 5,968 | | | 5,555 | | Total revenues, net | | 1,095,657 | | | 1,228,749 | | | 1,275,368 | | | 172,478 | | | 105,550 | | | 61,007 | | | 1,268,135 | | | 1,334,299 | | | 1,336,375 | | Cost of goods sold | | 541,458 | | | 631,785 | | | 688,328 | | | 95,655 | | | 61,737 | | | 38,466 | | | 637,113 | | | 693,522 | | | 726,794 | | | | | | | | | | | | | | | | | | | | | Selling, general and administrative(2) | | 400,813 | | | 402,658 | | | 402,560 | | | 63,365 | | | 41,572 | | | 30,227 | | | 464,178 | | | 444,230 | | | 432,787 | | Depreciation and amortization | | 119,287 | | | 144,919 | | | 115,618 | | | 22107 | | | 26,885 | | | 21159 | | | 141,394 | | | 171,804 | | | 136,777 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Adjusted EBITDA | | 251,384 | | | 297,362 | | | 305,490 | | | 23290 | | | 5,923 | | | (5331) | | | 274,674 | | | 303,285 | | | 300,159 | | Capital expenditures | | $ | 50,043 | | | $ | 81,891 | | | $ | 62,679 | | | $ | 13,397 | | | $ | 10,547 | | | $ | 2,762 | | | $ | 63,440 | | | $ | 92,438 | | | $ | 65,441 | | | | | | | | | | | | | | | | | | | | | (1) The Company is exposed to foreign currency exchange risk due to fluctuations between the functional currencies of its international subsidiaries and the USD. Additionally, the translation of these subsidiaries’ operating results into USD for reporting purposes introduces further exposure. While these fluctuations are not material to the Company’s consolidated operating results, they may impact the comparability of the Company’s segmented results across quarters and year-over-year. | (2) See Note 20 — Selling, general and administrative expenses for additional detail regarding the composition of consolidated selling, general and administrative expenses. No individual selling, general and administrative expense category within the International segment exceeded 10% of total consolidated selling, general and administrative expenses. |
The CODM reviews total assets as the primary balance sheet metric to assess each segment. The following table presents total assets by reportable segment as of December 31, 2025 and 2024: | | | | | | | | | | | | | | | | | | Total assets: | Domestic | | International | | Total | December 31, 2025 | $ | 2,415,707 | | | $ | 429,608 | | | $ | 2,845,315 | | December 31, 2024 | 2,574,687 | | | 375,021 | | | 2,949,708 | |
No single customer or country other than the United States accounted for 10% or more of consolidated revenue during the years ended December 31, 2025, 2024 and 2023. In addition, no individual country other than the United States represented a material portion of long-lived assets during those periods.
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