Green Thumb's profit streak ends. Motley Fool backs the cannabis stock on cash flow.

Cannabis producer and retailer Green Thumb Industries reported a net loss for the first time after four straight profitable quarters, losing one of its biggest competitive advantages. Still, the Motley Fool argues that the setback is manageable and that the stock remains one of the safest bets in the industry. Wall Street sees 150% upside.

Green Thumb Industries reported an 11.3% year-over-year increase in third-quarter revenue to $324.4 million. The net loss was $4.8 million, or $0.02 per share, versus net income of $23.3 million, or $0.10 per share, a year earlier. Operating income rose to $25.1 million from $20 million. The management attributed the swing to a net loss to a one-time gain a year earlier from the sale of its intellectual property and hemp business.

The loss ended Green Thumb’s run of four profitable quarters and cost it one of its biggest competitive advantages. Few marijuana retailers turn a profit, the Motley Fool notes. Even so, the Motley Fool sees the stock as a steady bet in a volatile industry.

The Motley Fool article argues that the loss is hardly “the end of the world.” It points to the company’s financial discipline, which allows it to fund its operations and generate cash. Operating cash flow came to $58.3 million, versus $76 million in the first quarter and $29 million in the second, giving the management room to keep returning capital to shareholders at a brisk pace, the Motley Fool says. Green Thumb has repurchased about $80 million of its stock so far in 2026 and has another $50 million available for buybacks through September 22, 2027.

Green Thumb is well positioned to grow as several key states move to legalize adult-use cannabis or expand access, the Motley Fool believes. The company holds a license in Virginia, where recreational cannabis retail sales are set to begin in July 2027, and a conditional license under the Texas Compassionate Use Program. It is also expanding its retail network in New Jersey, Ohio, and Pennsylvania. Together, those markets offer a clear path to revenue growth over several years, the Motley Fool argues.

By the Motley Fool’s tally, Green Thumb ranks second only to Curaleaf in total quarterly revenue among the largest U.S. cannabis retailers. The author of the article sees Green Thumb’s valuation as attractive at a price/sales ratio of around 1.3. Its debt/EBITDA ratio is lower than those of Curaleaf and Trulieve.

Green Thumb shares have fallen nearly 16% year to date to $6.80 apiece in the over-the-counter market. Wall Street remains upbeat on the stock, with eight analyst ratings, all “buy.” The average target price of $15.65 per share implies 150% upside from the Friday close.