Acreage Holdings: Q2 Revenue $58.1M, Boasts Record Revenue In NJ And CT, Positive Adjusted EBITDA

Acreage Holdings, Inc. ACRG ACRG.B.U) ACRHF ACRDF) reported its financial results Wednesday afternoon for the second quarter ended June 30, 2023.

"I am pleased with the progress we made in the second quarter on our continued efforts to drive meaningful revenue growth and achieve operational savings to deliver cash flow improvements for the business," said Dennis Curran, CEO of Acreage. "Our commitment to introducing differentiated products and delivering exceptional customer experiences has had a profound impact in several of our core markets, including the nascent New Jersey and Connecticut adult-use markets.” 

Q2 2023 Financial Highlights

• Consolidated revenue of $58.1 million, an increase of 3.8% compared to quarter ended March 31, 2023 
• Gross margin was 36%. Excluding the impact of non-cash inventory adjustments, gross margin for Q2 2023 was 44%.
• Adjusted EBITDA was $6.8 million and Adjusted EBITDA as a percentage of consolidated revenue was 12%.

Q2 and Recent Operational Highlights 

• Expanded the Company's leadership team to include deep cannabis operational expertise, and appointed Dennis Curran to CEO and Carl Nesbitt to CFO.
• Streamlined governance structure and rightsized the Board of Directors in preparation for the completion of the Company's previously announced strategic arrangement with Canopy Growth Corporation CGC and Canopy USA, LLC.
• Achieved record revenue in New Jersey and Connecticut with year-over-year increases of 35% and 31%, respectively, compared to the quarter ended June 30, 2022 
• Launched adult-use retail operations in Connecticut at The Botanist locations in Montville and Danbury, with both locations achieving strong initial performance.
• Entered partnership with the Last Prisoner Project to participate in the Roll It Up for Justice Program and inmate letter-writing initiative to further advance criminal justice reform and support those being impacted by the failed War on Drugs.
• Helped pass 280E reform in Ohio, Connecticut, and Maine to allow for state-level deductions of usual and necessary business expenses for cannabis operators.

New Jersey Blockbuster Growth 

“The robust revenue growth in New Jersey is incredibly encouraging as we deepen our operations and build a leadership position in the state, and our recent launch of adult-use sales in Connecticut has already garnered positive consumer feedback with demand ahead of our expectations," added Curran.

Price Action: Acreage Holdings closed down 1.45% at $0.17 per share after the bell on Wednesday afternoon.