Last month, Chicago-based Cresco Labs announced that its long-simmering $2 billion deal for Columbia Care would be abandoned, with Cresco CEO Charlie Bachtell citing the difficult environment for the cannabis industry as federal legalization remains stalled in Congress.

Now, Cresco is firmly focused on its core business, including its strong positions in markets like Illinois, Pennsylvania, and Massachusetts.Cresco’s net sales grew 2% sequentially in the three months through June to $198 million, driven by 4% retail growth. The company generated positive operating cash flow of $18 million and an adjusted EBITDA of $40 million, up 38% sequentially.

During the quarter, Cresco says it retained its No.-1 position by market share in Illinois, Pennsylvania, and Massachusetts and maintained its market leadership in branded flower. The company saw branded equivalized unit volume of 18 million, up 19% year-over-year, and retail transactions of 1.3 million, up 11% year-over-year. It also opened five more Sunnyside retail locations in Florida and Pennsylvania, bringing its nationwide store count to 68 at quarter’s end.

“Our Year-of-the-Core commitment to rationalizing and optimizing our core markets, core stores, core brands and core products is reflected in our Q2 results with growth in our top line, gross margin, adjusted EBITDA, and operating cash flow,” said Bachtell. “With our focus on driving scale and efficiencies across the entire organization, we’ve been accomplishing more with less. We maintained our industry leadership with the #1 portfolio of both branded flower and branded concentrates, #3 portfolio of branded vapes, and #4 portfolio of branded edibles.”—Danny Sullivan