Green Thumb Revenue Reaches $1B Despite What CEO Calls 'Mind-Numbing Lack Of Progress' In Weed Regulations

Green Thumb Industries Inc. GTBIF GTII revenue in 2022 reached $1 billion, a 14% increase compared to $893.6 million in 2021.

Q4 2022 Financial Highlights

• Revenue was $259.3 million, a 6.4% increase compared to $243.6 million in the Q4 2021. Revenue growth in the fourth quarter was primarily driven by the legalization of adult-use sales in New Jersey, which began on April 21, 2022, as well as revenue generated from acquisitions made throughout 2021.

• Gross profit was $124.0 million or 47.8% of revenue compared to $128.6 million or 52.8% of revenue in the Q4 2021.

• Cash at quarter end totaled $178 million.

• Adjusted operating EBITDA, which excluded non-cash stock-based compensation, other non-operating costs, and impairment charges, was $81.2 million or 31.3% of revenue as compared to $76.0 million or 31.2% of revenue for the fourth quarter 2021.

• Net loss attributable to the company for the fourth quarter 2022 was ($51.2 million) or ($0.22) per basic and diluted share, compared to net income of $22.8 million, or $0.10 per basic and diluted share in the prior year.

• As of December 31, 2022, current assets were $351.4 million, including cash and cash equivalents of $177.7 million. Total debt outstanding was $275.7 million.

Highlights for the year ended December 31, 2022:

• Net income of $12 million or $0.05 per basic and diluted share, compared to $75.4 million or $0.34 per basic and $0.33 per diluted share in 2021.

• Gross margin was $504.0 million or 49.5% of revenue versus $491.9 million or 55.1% in 2021.

• Adjusted operating EBITDA was $311.5 million or 30.6% of revenue, compared to $307.8 million or 34.5% of revenue last year.

“In 2022, Green Thumb reached $1 billion in annual revenue while delivering over $300 million in adjusted operating EBITDA. Our team continued to execute on our mission by building authentic brands that resonate with consumers. As a federally illegal business with limited access to capital, we remain focused on our cash position, while consistently paying interest and taxes on time. The lack of progress regarding cannabis regulation from our elected officials in Congress is mind-numbing. The crippling tax burden continues to hurt new operators by greatly reducing their prospects for a profitable and sustainable cannabis business,” stated Green Thumb founder, chairman and CEO Ben Kovler.

Green Thumb in the Community

Since 2021, Green Thumb has donated more than $3.5 million to organizations nationwide through grants, retail giving programs, cannabis education scholarships, and efforts to increase voter participation in support of cannabis policy reform. This includes contributions of $1.5 million made through the company’s Good Green brand to nonprofit organizations that are enacting real, positive change in Black and Brown communities disproportionately affected by the War on Drugs.

On November 29, 2022, the company announced its third round of grants to four nonprofits through its Good Green grant program. Each organization selected encompasses one or more of Good Green’s core pillars: education, employment and expungement. The four recipients: The Petey Green Program, Minority Cannabis Academy, CEIC Corp (DBA Cannabis Equity IL Coalition) and Nolef Turns, Inc. received unrestricted grants of $50,000 each to help advance their organization’s mission.

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