Pro forma revenue (including New Jersey affiliate) and pro forma Adjusted EBITDA of $7.15 million and $1.57 million, up 7% and down 31% year over year, respectively, with a pro forma Adjusted EBITDA margin of 21.3%

On an apples-to-apples basis, without the 2024 first quarter contributions of the terminated Vireo Growth services agreement, pro forma revenue and pro forma Adjusted EBITDA were up 14% and down 21% year over year, respectively
Solid operating performance highlighted by operational KPIs and New Jersey launch helps balance the impact of growth investments in corporate overhead and substantial pricing pressure in Michigan and Oregon
New Jersey cultivation affiliate, ABCO Garden State LLC ("ABCO") produced revenue of $1.77M, was cash flow positive, and had Adjusted EBITDA of $0.77 million in its first full quarter of sales
Oregon and Michigan Adjusted EBITDA Margins of 34.1% and 36.4%, respectively, despite the lower pricing environment
Reported (IFRS) Revenue of $5.58 million and Adjusted EBITDA of $0.80 million
Augmenting investor disclosure with schedules for operational KPIs and a new Adjusted EBITDA methodology going back two years, and hosting our first quarterly conference call, today at 5pm ET

MEDFORD, Oreg., May 13, 2025 /CNW/ - Grown Rogue International Inc. ("Grown Rogue" or the "Company") (CSE: GRIN) (OTC: GRUSF), a craft cannabis company born from the terroir of Oregon's Rogue Valley, is pleased to report its first quarter results ended March 31, 2025. The Company changed its fiscal year-end from October to December during 2024. All financial information is provided in U.S. dollars unless otherwise indicated.

Other First Quarter 2025 Highlights:

Closed US$7.0mm credit facility at approximately 9% interest with a national, FDIC- insured commercial bank
The remaining convertible lenders converted $3.3mm of outstanding convertible debentures not due until 2027, saving approximately $0.3mm in annual interest expense
Nile, the Company's affiliated dispensary located in West New York, New Jersey, opened in February 2025, with its grand opening event in April.
Developed an infused pre-roll processing lab in Oregon and soft launched infused pre-rolls in Oregon.

Management Commentary from CEO, Obie Strickler

"In October 2023 we announced our entry into the New Jersey market, driving growth and the expansion of our foundation built on properly scaled, low-cost, high-quality flower production. The first quarter of 2025 marked our first full quarter of New Jersey sales where we are showing strong month-to-month improvement in sales penetration, re-order rates, quality, yield, and cost control. I am particularly pleased with our financial results, with ABCO reporting $1.8M in revenue and 43% Adjusted EBITDA margins while only approximately at 25% sell-through of the facilities' full capacity. We expect to complete Phase II construction, bringing our full capacity to 1,000 to 1,200lb of whole flower, in late 2025.

As part of our growth plan and the goal to enter one new state each year, we have been investing in our team and systems, which is reflected in our corporate expenses. I am particularly proud of our team's resilience and grit as we navigate pricing pressure in both Oregon and Michigan which affects our current profitability in both markets, yet we're maintaining Adjusted EBITDA margins in the mid 30% range. I remind our team frequently, and it's important for our shareholders as well, that these high-pressure competitive environments are what we are built for and historically when we've made some of our biggest efficiency and quality improvements. Despite year-over-year pricing pressure greater than 20% in both markets, this rising competition plays to our strengths and creates more opportunities for us to grab market share and further our brand awareness. We always have room for improvement, and while total pounds harvested, yield per square foot, and cost per pound produced were all positive year over year in both Oregon and Michigan, we saw a downtick in our "A" flower production in Michigan that we have identified and are correcting. While we don't have a crystal ball with respect to pricing, we expect our operational improvements to materialize in our KPIs as we move through the year. We believe our overhead investments position us well to support New Jersey and the next 2-3 states, starting with Illinois where construction has already begun.

Although our team is never satisfied, I believe we're doing a remarkable job of executing against the things we control. Our near-term focus remains on continuous operational improvements, construction of phase two at the New Jersey facility, the buildout of our facility in Illinois, and our ongoing pursuit of additional markets and opportunities. We continue to believe that high-quality, low-cost, cannabis flower cultivation, that delights customers, is a protectable moat".

Management Commentary from CFO, Andrew Marchington

"To help investors understand our business, we're providing historical Adjusted EBITDA performance by segment calculated consistent with how we're reporting the first quarter of 2025 with a bridge to our previous methodology in the tables below. We migrated to what we anticipate will be a more conservative and consistent methodology. With this change and the disclosure of our operational KPIs, our goal is to give investors an accurate view of how our business is performing in line with how we view business performance internally. Because we continue to report under IFRS, the main adjustments relate to the fair-value adjustments for financial instruments and inventory that affect our cost of goods sold, which reflects how we evaluate our business internally. Our new methodology avoids other adjustments except for stock-based compensation. And as a reminder, given the complexity of our financial reporting with respect to ABCO in New Jersey, we are providing quarterly selected unaudited financial information for ABCO and pro forma performance metrics.

Conference Call and Webcast Information

Grown Rogue management will host a conference call with the investment community today, May 13, 2025, at 5:00pm ET (2:00pm PT) to discuss its quarterly financial results, operational performance and business development plans. Interested parties may attend the conference call by dialing 1-800-836-8184 (Toll-Free in U.S. and Canada) or 1-646-357-8785 (Toll) and referencing conference ID number 74084. A live audio webcast of this event will also be available via the following link: https://app.webinar.net/g5d4xqP8kNM.

About Grown Rogue

Grown Rogue International Inc. (CSE: GRIN | OTC: GRUSF) is a craft cannabis company operating in Oregon, Michigan, and New Jersey and under development in Illinois, focused on delighting customers with premium flower and flower-derived products at fair prices. The Company's roots are in Southern Oregon, where it has proven its capabilities in the highly competitive and discerning Oregon market. The Company's passion for quality product and value, combined with a disciplined approach to growth, prioritizes profitability and return on capital without sacrificing quality. The Company's strategy is to pursue capital efficient methods to expand into new markets, bringing craft-quality product at fair prices to more consumers. The Company also continues to make modest investments to improve outdoor craft cultivation capabilities in preparation for eventual interstate commerce. For more information, visit www.grownrogue.com.

Grown Rogue Reports First Quarter 2025 Results