Cannabis retailer Green Thumb posts a loss after four profitable quarters. Should you buy the stock?

Green Thumb Industries, a manufacturer and seller of cannabis products, reported a net loss for the first time after four consecutive profitable quarters, thereby losing one of its key competitive advantages in the industry. However, this isn’t the end of the world—the company’s stock remains one of the safest bets in the industry, according to Motley Fool. Wall Street sees 150% growth potential.

Green Thumb Industries reported an 11.3% year-over-year increase in revenue for the third quarter, to $324.4 million. However, the company posted a net loss of $4.8 million, or $0.02 per share, compared with a net profit of $23.3 million, or $0.10 per share, a year earlier. Operating income, meanwhile, rose from $20 million to $25.1 million. The company attributed the shift to a net loss to the fact that a year earlier it had recorded a one-time gain from the sale of intellectual property and its hemp-based products business.

Green Thumb ended its streak of four consecutive profitable quarters and lost one of its key competitive advantages—there aren't many profitable marijuana retailers in the industry, notes The Motley Fool.

Nevertheless, the publication believes the company's stock remains a safe bet in a volatile industry.

The publication does not view this as “the end of the world.” It points to the company’s financial discipline, which allows it to sustain its operations and generate cash. Specifically, cash flow from operating activities totaled $58.3 million, compared to $76 million in the first quarter and $29 million in the second, which allows management to actively return capital to shareholders, Motley Fool continues. Since the beginning of 2026, Green Thumb has repurchased approximately $80 million worth of its own shares, and it has an additional $50 million available for this purpose through September 22, 2027, according to its financial statements.

The company has every opportunity for further growth, as several key states are moving toward legalizing or expanding access to cannabis for adults, according to The Motley Fool. Green Thumb holds a license in Virginia, where retail sales of cannabis for recreational use will begin in July 2027, and a conditional license under Texas’ “Compassionate Use” program; and it continues to expand its retail network in New Jersey, Ohio, and Pennsylvania. Taken together, these markets offer clear multi-year revenue prospects, the article states.

According to Motley Fool’s calculations, Green Thumb ranks second only to Curaleaf in terms of total quarterly revenue among the largest U.S. cannabis retailers. The columnist considers Green Thumb’s stock valuation attractive at a price-to-sales (P/S) ratio of about 1.3. The company’s debt-to-EBITDA ratio is lower than that of Curaleaf and Trulieve.

Since the beginning of the year, Green Thumb’s stock has fallen by nearly 16% on the OTC market, to $6.80. However, Wall Street views the company’s prospects positively: it has eight analyst ratings, all of which are “buy.” The average target price is $15.65, which is 150% higher than the closing price on November 6.