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| Revenue | Note 2 — Revenue
Revenue
The Company generates revenue from continuing operations from Non-licensing Revenue and Licensing Revenue.
For the three and nine months ended September 30, 2026, the Company generated revenue from continuing operations from hemp-derived product sales (Non-licensing Revenue) and Licensing Revenue. Hemp-derived product sales revenue is recognized at a point-in-time when control transfers to the customer.
Licensing Revenue prior to April 1, 2026 was sales-based and recognized over time as the underlying sales occur in accordance with the terms of the related party license agreements, which commenced in May 2025. Effective April 1, 2026, the licensing arrangements were amended to provide for a fixed annual fee and Licensing Revenue is recognized on a ratable basis over the license term. For the three and nine months ended September 30, 2025, Non-Licensing Revenue from continuing operations is transferred at a point-in-time and relates to hemp-derived beverages.
The following table provides the Company’s revenue from continuing operations disaggregated by revenue type:
As of September 30, 2026, the aggregate amount of contractual Licensing Revenue allocated to remaining performance obligations is approximately $273.4 million. This represents fixed fees through August 27, 2030, reflecting the period prior to which neither party may terminate unilaterally; mutual termination remains available throughout the term. The Company expects to recognize this amount as revenue ratably over that period. The Company excluded variable consideration related to CPI-based fee escalators from the total remaining performance obligations, as such amounts are constrained and not included in the transaction price. As described in Note 8 and Note 15, an affiliate of Green Thumb holds a call option to repurchase some or all of the MC Brands and VCP intellectual property rights licensed under these arrangements, upon the occurrence of specified eligibility conditions, none of which had been satisfied as of September 30, 2026. Federal restrictions on hemp-derived THC products are currently scheduled to become effective on December 11, 2026, which, if effective as scheduled, would satisfy one of the eligibility conditions, although exercise would remain solely within the discretion of Green Thumb and its affiliates. If the option is exercised, the Company would no longer recognize Licensing Revenue related to the repurchased intellectual property rights for periods after the repurchase, and the remaining performance obligations would be reduced for the repurchased intellectual property rights. |
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