Ohio's Weed Enthusiasts Help This Cannabis Company's Bottom Line: 165% YoY Increase In Q3 Adjusted EBITDA

Cannabis operator with vertical operations in Arizona and Ohio Vext Science, Inc. VEXT VEXTF reported on its financial results Thursday for the period ended Sept. 30, 2024.

“Vext’s performance in the third quarter of 2024 was a testament to the team’s disciplined execution amid persistent macroeconomic headwinds," Eric Offenberger, CEO of Vext, said. "Our solid Adjusted EBITDA results reflect both the transition to adult-use sales in Ohio, as well as our focus on maintaining strict cost control. Despite a challenging economic climate and typical third-quarter seasonality and pricing pressures in the Arizona market with the ongoing supply-demand imbalance, we’re pleased to report that our economic unit volumes remain strong."

Read Also: Vext Cannabis Co.’s Q2 Revenue Drops Over 8% YoY, But Top Cannabis Analyst Sees Ohio Market As Major Growth Driver

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Q3 2024 Financial Highlights

• Revenue totaled roughly $9 million, up from $8 million in the prior year's period.
• Gross profit was $3.9 million, up from $2.8 million in the third quarter of last year.
• Total operating expenses amounted to $5.2 million, up from $4.5 million in the corresponding quarter of 2023.
• Adjusted EBITDA amounted to approximately $2.9 million, up from $1 million in the third quarter of 2023.
• Net loss was $2.5 million, up from $1.8 million in the prior year's period.

Outlook

The company noted that it's well-positioned to increase its Ohio footprint with an integrated approach.

Vext aims to open more dispensaries in Ohio by 2025–2026, anticipating reaching the state's dispensary cap of 8.

Pablo Zuanic, senior analyst at Zuanic & Associates initiated coverage of Vext Science with an Overweight rating earlier this year, highlighting the company’s significant growth potential.

Zuanic calculated that Vext has the most EBITDA torque among the twelve public multi-state operators (MSOs) in Ohio, projecting Vext’s EBITDA could grow six-fold by calendar 2026, taking calendar 2023 as the base year. Recreational marijuana sales launched across Ohio on Tuesday, Aug. 6.

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