Who Qualifies for DEA Registration, and Who Doesn’t
In today’s Trade To Black podcast presented by Flowhub, Shadd Dales and Anthony Varrell welcome Jushi Holdings (CSE: JUSH) Chairman and CEO Jim Cacioppo to break down the company’s Q3 2026 results. Dentons attorney Eric Berlin then returns to explain the DEA’s first wave of medical marijuana registrations and what it means for broader rescheduling.
Jushi reported revenue of $70.5 million, up 7% from a year ago, and adjusted EBITDA of $13.6 million at a 19.3% margin, with a net loss of $12.5 million. Wholesale revenue rose 40% to a second straight quarterly record of $9.7 million. Virginia posted another record quarter for retail and delivery sales ahead of adult-use sales, which are scheduled to begin July 1, 2027.
Cacioppo says Jushi’s Virginia stores were built oversized for an adult-use market, with room for heavy volume. The real pain point will be supply, and he expects shortages at first. To prepare, Jushi is finishing its final grow room, adding hydrocarbon extraction and renovating a greenhouse for planting next year. A second cultivation building should come online around the start of 2028. Beyond Virginia, he sees growth in Pennsylvania and Ohio, where Jushi has a partially built business, and potential consolidation opportunities in states like Georgia, Texas and Florida.
Cacioppo calls the DEA’s site visits professional and says Jushi’s Virginia dispensaries have received registrations. He believes the agency’s pushback on certain states reflects concerns about diversion in loosely regulated markets, and he urges investors to let the process play out.
Berlin explains that the DEA is registering more than 900 dispensaries in Alabama, Florida, Mississippi, South Dakota, Texas, Virginia and West Virginia. Nearly 7,000 businesses applied. For applicants in California, D.C., Illinois and Minnesota, the agency issued orders to show cause, often over combined medical and recreational licenses or state certifications that fall short of federal standards. Berlin notes these aren’t final denials. He calls the decision to reject all of Illinois over one veterans’ access issue concerning. He also expects the DEA to keep registering businesses in phases, including cultivators and manufacturers.
Because the April order covers medical activity only, Berlin says adult use will likely need Congress to resolve the conflicts between state and federal law. The stay in Judge Derek Julius’s separate proceeding on broader Schedule III rescheduling expires Thursday. Berlin says nothing prevented the judge from continuing work on his recommendation in the meantime.
Hear the full breakdown as earnings season continues.
