This Cannabis Stock Poised To Excel Even Without Federal Weed Reform, Posts Q3 Results

MariMed Inc. MRMD MRMD reported its third-quarter earnings report on Thursday for the three months ended Sept. 30, 2023.

Touted as undervalued when compared to its multi-state operator (MSO) peer by cannabis expert Pablo Zuanic, senior analyst at Zuanic & Associates, MariMed is on track to become a top 10 MSO by 2025.

During the quarter, the company's revenue increased to $38.8 million representing a year-over-year increase of over 14% - a testament to its strong operations in Illinois, Massachusetts, Maryland and Ohio. Upcoming operations are expected in Missouri and Delaware.

Zuanic said on initiating the coverage of the company recently that MariMed maintains strong gross margins, high SGA efficiency and competitive EBITDA margins and that its ability to generate positive operating cash flow sets it apart from many of its peers.

See also: High Capex, High Rewards: Analyst Looks At Cannabis MSOs' Strategies

Q3 Financial Highlights

• Gross profit totaled $16.8 million, up from $16.1 million in the prior year’s period.
• Gross margin was 43.4%, down from 47.7% in the third quarter of last year.
• Total operating expenses were $13.5 million, up from $10.4 million in the same period of last year.
• Income from operations totaled $3.3 million, down from $5.7 million in the third quarter of 2023.
• Net loss was $4.2 million, compared to the net income of $2.7 million in the prior year’s period.
• Adjusted EBITDA (a non-GAAP measure) came in positive at $6 million, compared to an adjusted EBITDA gain of $8.6 million in the prior year’s period.

2023 Outlook

The company's guidance for full-year 2023 is:

• Revenue of $148 million to $150 million;
• Gross margin of approximately 45%;
• Non-GAAP Adjusted EBITDA of $27 million to $32 million; and
• Capital expenditures of $22 million to $25 million.

MRMD Price Action

MariMed’s shares traded 1.5625% lower at $0.315 per share at the time of writing on Thursday morning.

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• Photo: Benzinga edit of images by Matthew Brodeur and Jungwoo Hong on Unsplash