MRMD

**2025 Highlights** * Revenue of $159.8 million * Sixth consecutive year of positive Adjusted EBITDA * Wholesale revenue increased 11% * Distribution expanded to 85% of dispensaries in core markets * Betty’s Eddies ranked #1 edible across four states * Completed restructuring of Series B obligation, extending maturity 4.6 years **MariMed (MRMD): The Wholesale Powerhouse & Deep Value Analysis** **------. The Operational Engine: "Wholesale Beast" Dominance** MariMed has successfully pivoted from a simple retailer to the **essential infrastructure layer** of the East Coast and Midwest cannabis markets. * **Record Revenue**: FY2025 hit an all-time high of **$159.8M**. * **Wholesale Surge**: Wholesale revenue grew **11% to $69.6M** (now **44%** of the business). * **The "85% Club"**: They have reached **85% dispensary penetration** in core markets. * **Maryland**: Distribution in **108 of 109** dispensaries (near 100% saturation). * **Illinois**: Wholesale revenue skyrocketed **39%**, hitting **82%** of all shops. * **Category Captains**: *Betty’s Eddies* remains the **#1 ranked edible** in 4 states. This creates "inelastic demand"—third-party retailers *must* stock MariMed to keep their customers, giving MRMD massive leverage over their **$19.7M in high-quality Accounts Receivable**. **------. The "Harvest Phase": A 90% Capex Collapse** The most bullish "hidden" metric is the pivot from "Builder" to "Earner." The heavy lifting of construction is over. * **Capex Cliff**: Capital spending dropped from **$10.9M in 2024 to just $1.2M in 2025**. * **Unlocking Cash**: Almost every dollar of their **$16.9M Adjusted EBITDA** (6th consecutive positive year) is now "free." They are no longer pouring cash into concrete; they are using it to service the balance sheet. * **Efficiency**: With **$110.5M in net PP&E**, MariMed generates significantly more revenue per dollar of equipment than its "Tier 1" peers. **-----. Deep Value: Buying Assets at a 65% Discount** The market is currently pricing MariMed as if its facilities are worthless, creating a "liquidation-floor" opportunity. * **The PP&E Gap**: MariMed holds **$110.5M in net Property, Plant, and Equipment**. With a market cap near **$35M**, you are buying the physical "bricks and mortar" for **\~$0.32 on the dollar**. * **Tangible Book Value (TBV)**: After stripping out $32M in goodwill/intangibles, the stock trades near its **liquidation floor**. You are essentially getting the licenses, the #1 brands, and the 85% distribution network **for free**. **------. Margin Compression: The "Kitchen Sink" Quarter** The Q4 GAAP gross margin of **25.2%** looks like a red flag, but it was an intentional "clearing of the decks." * **Inventory Purge**: They took a **$5.6M inventory revaluation hit** in Q4 to flush old stock and optimize for the high-margin **2026 Ohio launch**. * **Adjusted Stability**: Excluding one-time hits and Missouri exit costs, **Non-GAAP Gross Margin remained healthy at 40%**. **------. 2026 Growth Catalysts** * **The Ohio Gold Mine**: The upcoming **Columbus, Ohio** dispensary opening is a major high-margin catalyst. * **Delaware Adult-Use**: Saw **37% sequential growth** in wholesale; MariMed's early-mover status is poised to dominate as the market matures. * **Missouri Exit**: By cutting underperforming MO assets in October 2025, they’ve optimized for **pure profitability** in 2026. **The Verdict**: MariMed is a **distribution beast** trading at a **fire-sale valuation**. They have neutralized their biggest debt threat (Series B) and slashed spending by 90%. If you believe in **Federal tax reform**, you are buying a $110M asset base for $35M.

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