Medical Marijuana Giant Trulieve, Backer Of Florida's Recreational Cannabis Ballot, Narrows Loss, Reports Uptick In Q1 Revenue, Gross Profit

Trulieve Cannabis Corp. TRUL TCNNF announced its first quarter results for the three months ended March 31, 2024.

The Tallahassee-based medical cannabis giant reported revenue of $298 million for the first quarter of fiscal 2024, representing an increase of 4% sequentially and year-over-year, with 96% of revenue from retail sales.

“With strong performance in our core business and several meaningful catalysts on the horizon, the outlook has never been brighter,” said CEO Kim Rivers. “The team has done a phenomenal job carrying forward the momentum from last year, driving further improvements in production and retail. Given our financial performance and significant scale in key markets, Trulieve is best positioned for the coming wave of growth catalysts.”

Rivers recently shared the stage with Country music legends David and Howard Bellamy, known as The Bellamy Brothers, at the Benzinga Cannabis Capital Conference in Florida.

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The Bellamy Brothers are members of the advocacy group Safe & Smart Florida which was responsible for placing a constitutional amendment to legalize recreational cannabis on the Florida ballot.

The Florida Supreme Court approved both a recreational marijuana and abortion rights amendment in early April, on which Floridians will vote in the November 2024 election.

The campaign has largely been funded by Trulieve, along with other top cannabis operators like Verano Holdings Corp VRNO VRNOF, Curaleaf Holdings, Inc. CURA CURLF, Ayr Wellness Inc. AYR AYRWF, Cresco Labs Inc. CL CRLBF 6CQ, Green Thumb Industries Inc. GTBIF and INSA, Inc.

Q1 2024 Financial Highlights

• Gross profit was $174 million, up 16% year-over-year, and 13% sequentially.
• Gross margin was 58%, compared to 53% in the prior year's period and 54% in the previous quarter.
• Operating expenses totaled $128 million, down from $133 million in the corresponding quarter of 2023 and $125 million in the prior period.
• Net loss was $23 million, down by 64% year-over-year and 31% sequentially.
• Adjusted EBITDA came in positive at $106 million, up from an adjusted EBITDA gain of $78 million in the prior year's period and $88 million in the fourth quarter of fiscal 2023.
• Strong cash flow from operations of $139 million and free cash flow of $124 million in the first quarter of 2024.

TCNNF Price Action

Trulieve's shares traded 1.82% higher at $10.79 per share at the market close on Wednesday.