Another Cannabis Company Benefits From Maryland's Green Rush, iAnthus Cuts Q3 Net Loss While Growing Revenue

iAnthus Capital Holdings, Inc. IAN ITHUF reported its financial results on Thursday for the third quarter ended September 30, 2023.

Q3 2023 Financial Highlights

• Revenue totaled $42.9 million, representing a quarter-over-quarter increase of 10.8% and an increase of 8.9% from the same quarter in the prior year.
• Gross profit was $17.4 million, a sequential decrease of 5.2% and an increase of 7.7% from the same quarter in the prior year.
• Gross margin was 40.6%, reflecting a sequential decrease of 687bps and a decrease of 47bps from the same quarter in the prior year.
• Net loss amounted to $15.6 million, compared to a net loss of $20.1 million in the previous quarter, compared to a net loss of $22 million in the same quarter of 2022.
• Adjusted EBITDA came in positive at $4.9 million, representing a sequential increase from an Adjusted EBITDA gain of $3.9 and an increase from a negative adjusted EBITDA of $0.3 million from the same quarter in the prior year.

Analyst Pablo Zuanic at research firm Z&A said in a recent report that iAnthus Capital and other top cannabis multi-state operators (MSOs) have benefitted from the launch of Maryland's recreational cannabis sales this summer.

Maryland experienced a significant increase in total sales, reaching $270 million for 3Q23, primarily due to the start of recreational sales in July.

“MSOs with exposure to Maryland will benefit, with varying effects based on their sales in the state. Ascend, Curaleaf, Green Thumb, TerrAscend, and Verano have four stores in Maryland; Columbia Care, iAnthus, and Trulieve each have three; most also engage in wholesale,” Zuanic wrote.

“Many firms don't break down sales by state, but Maryland will significantly impact Ascend, TerrAscend, iAnthus, and MariMed. Other MSOs have more diversified state portfolios, but Maryland remains a positive driver.”

In October, Maryland’s licensed retailers sold $90 million worth of medical and recreational cannabis products. Out of that sum, medical marijuana sales accounted for $35 million, while recreational sales amounted to $55 million, reaching a new record in the prior month.

ITHUF Price Action

iAnthus’ shares traded 1.7778% higher at $0.0229 per share at the market close on Thursday afternoon.

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