This Ancillary Cannabis Company Is Cashing In With 69% YoY Revenue Increase In Q3

Zinger Key Points
  • Urban-gro reported a 69% year-over-year and 11% sequential increase in total revenues to $20.9 million in the third quarter.
  • Net loss amounted to $3.4 million, an improvement of $5.3 million versus the prior year period.

Urban-gro, Inc. UGRO reported its financial results Thursday for the third quarter ended Sept. 30, 2023, revealing a 69% year-over-year and 11% sequential increase in total revenues to $20.9 million.

“Since launching our sector diversification initiative just over a year ago, urban-gro has successfully evolved into a multi-sector focused professional services consulting firm,” said Bradley Nattrass, chairman and CEO of the Colorado-based company.

Q3 2023 Financial Highlights

  • Gross profit totaled $2.8 million, up from $2.6 million in the prior year’s period.
  • Loss from operations amounted to $3.1 million, down from $6.9 million in the third quarter of last year.
  • Net loss amounted to $3.4 million, representing an improvement of $5.3 million versus the prior year period and a sequential improvement of $2.1 million.
  • Adjusted EBITDA came in negative at $1.3 million, representing an improvement of $1 million versus the prior year period and a sequential improvement of $0.7 million.
  • Project backlog of $84 million as of September 30, 2023, representing a sequential increase of $5 million, or 6%.
  • As of Sept. 30, 2023, the company had $58.6 million in total assets, down from $62 million on Dec. 31, 2022.

Q4 2023 Guidance

The company also provided a fourth-quarter 2023 guidance of approximately $30 million in revenues and breakeven to slightly positive adjusted EBITDA.

“Our strengthening revenue and adjusted EBITDA performance in the third quarter reflects a solid improvement on both a sequential and year-over-year basis,” Nattrass explained. “Given our strengthening pipeline and backlog, we continue to anticipate sequential quarterly improvement as we work to recapture positive Adjusted EBITDA generation.”

UGRO Price Action

urban-gro’s shares traded 1.54% higher at $1.32 per share at the time of writing on Friday morning.

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Photo: Courtesy of Josh Appel on Unsplash

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Posted In: CannabisEarningsNewsPenny StocksMarketsBradley Nattrassfinancial resultspremiumthird quarter earnings
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