Hello, and good morning, everyone. I'm Tim Rasmussen, Vice President of Retail at MariMed.

I joined the company 3 years ago following several decades leading the national and regional operations of several successful retail chains in other industries. I've never worked with a team as passionate and committed as the retail group here at MariMed.

They are the heart and soul of why we're able to deliver exceptional service at Thrive stores, and I'm honored to call them my teammates. I'm also honored to kick off today's 2026 second quarter earnings call.

Joining the call today are Jon Levine, our Chief Executive Officer; Mario Pinho, our Chief Financial Officer; and Ryan Crandall, our Chief Commercial Officer. This call will be archived on our Investor Relations website and contains forward-looking statements.

Any actual events or results may differ materially from these forward-looking statements and are subject to various risks and uncertainties. A discussion of some of these risks is in the Risk Factors section of our 10-K and 10-Qs available on our website.

Any forward-looking statements reflect management's expectations as of today, and we assume no obligation to update them unless required by law. Additionally, we will refer to certain non-GAAP financial measures, which are reconciled in our earnings release.

I will now turn the call over to Jon for his second quarter overview.

Thanks, Tim, and good morning, everyone. The second quarter represented meaningful progress for MariMed.

Revenue increased in both our wholesale and retail businesses, both sequentially and year-over-year, resulting in the highest quarterly revenue in our history. We also delivered a strong sequential increase in adjusted EBITDA and once again generated positive cash flow from operations.

I'm very encouraged by these results, but I am even more encouraged by how we achieved them. The cannabis industry remains highly competitive and price compression continues across many markets.

Against that backdrop, our team remained focused on the things we can control, operational discipline, product innovation and quality, customer experience and thoughtful capital allocation. Those priorities helped produce stronger financial performance during the quarter and have positioned us well for the future.

Our balance sheet remains healthy. Our brands continue to resonate with consumers, and our operating model gives us flexibility to respond quickly as markets and new opportunities evolve.

It's our ability to execute that differentiates MariMed. When Ryan provides his summary on our performance across each area of our operations, you'll see that the results were not driven by one product or one market.

They reflected continued improvement across many parts of the organization from cultivation and manufacturing to wholesale, retail and marketing. When each aspect of the business experiences improved performance, the positive results tend to follow.

Looking ahead, we will build on this quarter's results by staying focused on implementing our Expand the Brand growth strategy, centered on building a leading cannabis consumer product company that owns top-selling national brands in the most popular categories. To achieve that goal, we will continue investing in product innovation while broadening our depth in existing states.

We will also continue to look for opportunities to enter new markets through capital-light strategies, including brand licensing. In Ohio, construction of our new Columbus dispensary remains on schedule, and we expect that location to begin contributing to revenue later this year.

Adding the second dispensary in one of the country's fastest-growing adult-use markets represents another important step in expanding our retail footprint. In Massachusetts, the recent increase in dispensary ownership limits creates additional opportunities in our home state.

As always, we'll evaluate those opportunities carefully and remain disciplined in how we deploy capital. Our planned launch in New York remains on schedule, and we continue to expect our brands to enter that market during the first half of 2027.

The performance of our brands continues generating interest from operators in other states as well. We're engaged in discussion regarding additional opportunities where we believe our portfolio can create value for both our company and future partners.

The strength of our licensing strategy ultimately begins with consumer demand. Operators want brands that consumers already recognize and seek out.

That's exactly what we're continuing to build. Sales of our product portfolio outperformed the industry across our core states.

While we continue to execute our plans effectively and efficiently, we also keep a close eye on what's happening in Washington. There is positive momentum behind additional cannabis reform following the spring's rescheduling of medical cannabis.

The potential rescheduling of recreational cannabis, the implementation of 280E tax relief and the broader banking reform -- all these potential catalysts would significantly improve the operating environment of our industry, and we are positioned to capitalize on any of those new opportunities if and when they emerge. We anticipate incremental clarity on all of them by the end of the year.

To be clear, though, our innovation, brand portfolio, operation model, healthy balance sheet and tremendous team continue to position us for long-term sustainable value creation. I will now turn it over to Ryan.

Thanks, Jon, and good morning, everyone. The second quarter reflected improved execution across both our wholesale and retail businesses.

We continue to focus on implementing our growth strategies of expanding distribution, strengthening customer relationships, improving retail execution and investing behind brands that consumers actively seek out. That approach produced strong results during the quarter.

Wholesale revenue increased 6% sequentially. That growth was driven by continued strength across our branded products portfolio, which once again either maintained or improved market share across many of our core product categories.

In total, our branded portfolio grew 70 basis points faster than the broader industry across our core markets according to industry data sources. Just as importantly, we continued expanding our presence at third-party retailers.

Distribution increased 100 basis points sequentially to 85% of available storefronts across our core markets on a trailing 12-month basis. Most notably, Betty's Eddies remain the #1 edible brand across our wholesale markets.

Following its launch in Maine late last year, Betty's has already become the third best-selling edible brand in that state. In addition, Vibations' THC drink mixes, InHouse gummies and Bubby's Baked goods each continued to perform well, maintaining top 10 market share positions in their respective categories across our core markets.

Highlighting some of our most important markets, in Illinois, our wholesale revenue increased 4% sequentially. We were particularly encouraged by the continued progress of Nature's Heritage in that state.

While the brand entered the market more recently than virtually all of the established competitors, it continues gaining traction with both retailers and consumers. During the quarter, Nature's Heritage vapes, pre-rolls, and concentrates each improved their market share rankings by at least 10 positions, demonstrating that our cultivation quality and product innovation continue to resonate as awareness of the brand grows.

In Maryland, wholesale revenue increased 13% sequentially as production returned to normal following the isolated manufacturing issues we discussed on our previous earnings call. Turning to retail.

Retail revenue increased 7% sequentially, with growth led by continued improvement across the Thrive dispensary network. Like the rest of the industry, we continue operating in an environment where average order volume remains under pressure.

That dynamic isn't unique to MariMed. It reflects ongoing pricing competition across nearly every market.

Rather than attempting to offset lower average tickets through increasingly aggressive discounting, we are taking a more creative approach by focusing on initiatives designed to increase consumer engagement and encourage repeat visits. During the quarter, those efforts included continued expansion of our Thrive Perks Loyalty Program, targeted promotional campaigns, localized marketing initiatives and customer-focused in-store events.

The result was a 7% sequential increase in transactions across the network. Equally encouraging, Thrive's Perks membership has increased 14% since the beginning of the year.

That number is particularly meaningful because loyalty members consistently demonstrate stronger purchasing behavior than nonmembers, spending more per transaction than customers who are not enrolled in the program. Growing our customer base through Thrive Perks strengthens our business beyond a single quarter because it creates more opportunities for repeat engagement while improving the effectiveness of our marketing and promotional efforts.

In terms of our performance in specific markets, Illinois retail revenue increased 7% sequentially. Each of our 5 dispensaries contributed to that growth, reflecting broad-based improvement across the network rather than isolated improvements.

Our retail performance in Delaware was also particularly strong. Revenue increased 32% sequentially, reflecting the seasonal tourism pattern as well as continued execution by our local team during one of the busiest periods of the year.

Overall, our wholesale, retail and operations teams expanded distribution, strengthened customer engagement, improved retail productivity and continued maintaining leading positions across many of our core product categories. Our performance during the quarter underscores our ability to continue to compete effectively in a crowded marketplace where consumers have more choices than ever before.

Perhaps most encouraging is that the progress we made during the quarter wasn't concentrated in one market or one business segment. We saw positive contributions across much of the company and are well positioned for continued progress as we move through the balance of the year.

I want to thank every retail, sales, marketing and operations team member that contributed to a terrific quarter. With that, I'll turn the call over to Mario.

Thank you, Ryan, and good morning, everyone. I'll start with the headline.

Consolidated revenue reached a new quarterly record of $41.9 million, up approximately 6% sequentially and roughly 6% year-over-year. That growth came against the backdrop that continues to be defined by wholesale price compression and intense retail competition already covered by Ryan.

Therefore, I want to spend most of my time today on what's driving the top line, where margins stand and how we're managing the business through this environment. Starting with revenue.

Consolidated revenue increased approximately 6% sequentially, driven by growth across both our wholesale and retail businesses. Wholesale revenue increased approximately 8% compared to the prior year and represented approximately 44% of total product revenue.

The growth reflects continued expansion of our branded portfolio, increased market penetration and broader distribution across our core markets. Retail revenue increased approximately 7% sequentially and approximately 4% year-over-year.

We saw sequential revenue growth in 12 of our 13 dispensaries and sequential transaction growth in 10 of our 13 dispensaries. The outlier is Massachusetts, where we are seeing continued pressure from market saturation.

The state now has one of the highest dispensary per capita ratios in the country, which has driven elevated promotional activity and basket compression, particularly in our Quincy and Middleborough locations. We are actively working to improve throughput and the customer experience at both stores.

May and June were our strongest retail months of the year, and we anticipate that momentum will continue. Turning to profitability.

Non-GAAP adjusted gross margin was approximately 40% in the quarter, essentially flat from the first quarter, 40.1%, but down from 41.8% in the second quarter of last year. I think it's important to evaluate that year-over-year comparison within the context of today's operating environment.

Across much of the cannabis industry, wholesale pricing continues to decline, while promotional activity remains elevated. The approximately 180 basis points year-over-year decline in adjusted gross margin reflects the increased competition we are seeing in Massachusetts and Illinois, where the rapid expansion of licensed operators has intensified both retail price competition and wholesale pricing pressure, leading us to increase promotional activity to protect market share.

We believe this pressure on our margins will be offset by improved production, the scaling of our licensed markets and with the addition of our new dispensary in Ohio. We believe those factors are transitional rather than structural.

As cultivation utilization continues to improve, newer operations mature and our branded wholesale business continues to scale, we believe there remains meaningful opportunity for margin expansion over time. Operating expenses totaled $15.2 million, or approximately 36% of revenue, essentially in line with 36.5% of revenue in the first quarter and up from 35% of revenue in the prior year period.

Q2 includes a write-off related to one of our wholesale partners operating in several of our markets that declared bankruptcy. We believe this is an isolated incident.

Excluding this onetime item, we are continuing to hold our operating expenses flat sequentially, and we expect to maintain that discipline in the second half of the year. Personnel costs as a percentage of revenue has improved sequentially and year-over-year, and we remain focused on ensuring that revenue growth outpaces any increase in overhead.

Adjusted EBITDA was $3.9 million, an increase of approximately 10% sequentially from $3.6 million in the first quarter, though down from $4.8 million in the second quarter of last year. Adjusted EBITDA margin was approximately 9.4%, up modestly from 9.1% in the first quarter, but below the 12.1% margin we posted in the prior year period.

The year-over-year decline in EBITDA margin reflects the same pricing and mix dynamics affecting gross margin, and we remain focused on converting our revenue growth into improved profitability as those pressures ease. On a GAAP basis, net loss was $3.6 million compared to a net loss of $3.8 million in the first quarter, reflecting a modest sequential improvement in operating performance.

Turning to the balance sheet. We ended the quarter with $8.4 million in cash and cash equivalents, up from $7.9 million at the end of the first quarter and $33.6 million in operating working capital, providing us with the flexibility to continue investing in attractive growth opportunities while maintaining a disciplined approach to capital allocation and a balance sheet that supports our growth strategy.

As we look ahead, our priorities remain clear. We'll continue expanding distribution of our branded products, increasing productivity across our retail network, growing our licensing platform and allocating capital with discipline.

Our objective is straightforward: to continue improving the profitability of the business. While revenue growth remains important, our focus is on converting the growth into higher margins, stronger cash generation and increasing returns for our shareholders.

We believe the pricing and mix pressures we experienced this quarter are transitional and that as our newer operations mature, utilization increases and our branded products continue to gain market share, there remains a clear path to margin expansion. We believe those improvements position MariMed to create sustainable long-term shareholder value regardless of the broader industry environment.

With that, I'll turn the call over to Jon.

Thanks, Mario. All the positive movement we're seeing in Washington, taken together with our quarterly results, the opening of Thrive Columbus, the continued expansion of our brand distribution, our move into New York, and more, fuels my optimism about MariMed's future and the value creation we are working hard to deliver to our investors.

I want to thank them for their continued support. I'd like to thank our employees for their relentless dedication to improving the lives of our patients and customers every day.

We're nothing without their spirit, collaboration, expertise and valuable daily contributions. Operator, you may now open the lines for questions.

A few questions from me. Let's start with -- can you drill down on the performance of your Illinois stores?

And maybe for the audience, remind people how many stores you have in Illinois.

Pablo, this is Ryan. Thank you for the question.

Yes, Illinois, 7% sequential growth in 5 retail stores across Illinois. We're very pleased with the performance.

The key initiatives that we're working on are really around loyalty, promotions and pricing, and those strategies seem to be paying off. And it's really all about customer experience across the entire network of retail stores, not just Illinois.

I think in addition to that, Pablo, I think the hemp ban in Tennessee is positively impacting our stores on the south side of the state as well as the new regulations around increased allotment for both in-state and out-of-state customers. So I think all those things are winds that are blowing in our favor.

And we'll continue to see those benefits.

And then along the same lines, maybe can you provide your thoughts on the Massachusetts market? Has it stabilized?

Or is it still seeing price compression?

Sure, Pablo. Thank you.

I think we saw 4% sequential growth in the Mass market, which we're pleased with. Overall, I think we see it as more stable than it's been in the past.

However, it's still obviously a challenging market. We've got a great team that's been here for a while.

We've got great brands that have great share. And our plan is to continue to grow our share and to extend our leading categories and continue to put pressure on our competition and continue to outperform.

And then maybe for Mario, you held steady on margins while other MSOs have seen declines. What are your expectations for the remainder of the year on the profit margin front, gross margin and EBITDA?

Pablo, thanks for the question. I think there were 2 factors, I would say.

I mentioned improved cultivation utilization and manufacturing efficiencies. These proved to offset pricing pressures that we're seeing in some of the markets.

I would also say a modest shift in our revenue mix sequentially with retail, our highest margin channel, helped out. Also, Ryan mentioned, and I think it's worth repeating, distribution and brand strength are holding up that we're seeing in the various markets.

So these levers, I believe, will carry into the second half of the year. Also, with the addition of our Ohio store, we'll continue to increase our higher margin revenue and mix.

So I would say those are the factors that will help us hold on margin. And I would also just mention, obviously, that's in the backdrop of a lot of our MSO peers seeing pressure in their margins.

Yes. No, for sure.

And then one last one. What is the status with your DEA registration?

Have you registered all your states or only some states? How is that working out?

Pablo, this is Jon. Thank you very much for joining and for the question.

Yes, we have gone forward and we have applied for all the states where we have medical licenses with the DEA. And as a matter of fact, we have our first inspection coming up with the DEA in the next week or so.

So we're looking forward to seeing the rescheduling keep moving forward, and we're very excited about everything that's happening in Washington right now.

Right. Can I ask, I mean, you have medical licenses in all the states that you operate in, right?

We have medical licenses in each of the states for both medical and recreational.