Jushi Holdings's Business Segments

The registrant is a vertically integrated, multi-state cannabis operator involved in retail, distribution, cultivation, and processing within both medical and adult-use markets. It builds a portfolio of cannabis assets through investments and applications in limited license jurisdictions, focusing on populous medical markets transitioning to adult use, including Pennsylvania, Virginia, Illinois, Massachusetts, Nevada, New Jersey, Ohio, and certain California municipalities. The company evaluates market opportunities based on competitive, regulatory, supply and demand, and growth factors, with capital allocation decisions tailored to each market's dynamics. Its operations include adult-use and medical dispensaries under the brands Beyond Hello, Nature’s Remedy, and NuLeaf, supported by cultivation and processing facilities in Massachusetts, Nevada, Ohio, Pennsylvania, and Virginia. The registrant holds various licenses for dispensaries, cultivation, processing, and pharmaceutical processing across these states. As of December 31, 2025, it operates 42 dispensaries and cultivation and processing facilities ranging from 7,000 to 123,000 square feet. Retail locations are selected for visibility and traffic, with real estate decisions made individually. The company provides information to patients and consumers through personalized staff interactions and may selectively expand its retail network.

The registrant operates multiple state-level segments involved in the cultivation, processing, distribution, and sale of cannabis in the U.S., which are aggregated into a single reportable segment due to similar economic performance and qualitative characteristics. All revenues and substantially all long-lived assets are located within the U.S. The Chief Executive Officer serves as the chief operating decision maker, evaluating performance based on consolidated net income (loss) and allocating resources accordingly. Segment assets, revenue, and expenses are reported as total consolidated amounts in the financial statements. Revenue is recognized in accordance with ASC 606, with a single performance obligation for the sale of medicinal and adult-use cannabis and derivative products, recognized at the point when control transfers to the customer, typically upon delivery and acceptance. Discounts are margin-driven and not treated as variable consideration. Taxes collected for remittance are excluded from revenue. The company also operates a loyalty reward program at certain retail locations, allocating a portion of revenue to loyalty points and recording a reduction in revenue and a corresponding liability based on estimated point obligations.