Green Thumb's Q2 Revenue Soars 11% To $280M, Is Rising Cost Something To Watch?

Green Thumb Industries Inc. GTBIF, a national cannabis consumer packaged goods company and owner of RISE Dispensaries, announced its financial results for the second quarter ended June 30, 2024.

"In the second quarter, our team delivered impressive results including $280 million in revenue, Adjusted EBITDA of $94 million, and $20 million of cash flow from operations," said Ben Kovler, Green Thumb founder, chairman and CEO in a press release. He emphasized the company's robust market position and ongoing challenges with regulatory clarity.

Green Thumb president Anthony Georgiadis praised the company's focus on execution and product quality, contributing to their strong performance.

Financial Highlights

• Revenue: Green Thumb reported a revenue of $280 million for the second quarter, marking an 11% increase compared to the same period in the previous year.
• Net Income: The company achieved a net income of $20.7 million, or $0.09 per basic and diluted share, up from $13.4 million, or $0.05 per share, in the second quarter of 2023.
• Gross Profit and Margin: Gross profit for Q2 2024 was $150.5 million, representing 53.7% of revenue. This is an improvement from the $125.3 million gross profit (49.6% of revenue) reported in Q2 2023.
• Adjusted EBITDA: Adjusted EBITDA for the second quarter was $94 million, equating to 34% of revenue, compared to $75.8 million or 30% of revenue in the same period last year.

Cash Flow And Share Repurchase

Green Thumb ended the quarter with $196 million in cash. The company reported cash flow from operations of $104 million for the first six months of 2024, net of $53 million in tax payments. During Q2, Green Thumb repurchased 1,658,000 shares for $20 million, bringing the total share repurchase to $73.3 million for 6,568,125 shares under its program.

Operational Performance

• Retail revenue increased by 8.8% year-over-year, while consumer packaged goods gross revenue grew by 17.3%. The revenue growth was primarily driven by increased sales in 11 new RISE Dispensaries and the addition of adult-use sales in Maryland, offset by price compression.
• Expenses: Total selling, general and administrative expenses for Q2 2024 were $96.5 million, or 34.4% of revenue, compared to $84.2 million, or 33.4% of revenue, in Q2 2023. The increase was mainly due to costs associated with opening new stores and higher employee salaries.

Balance Sheet And Liquidity

As of June 30, 2024, Green Thumb's current assets totaled $403.8 million, with total liabilities at $370.6 million. The company’s total debt stood at $309.7 million.

Recent Developments

During Q2 2024, Green Thumb opened two new RISE Dispensaries in Florida, with subsequent openings in Tallahassee, Florida, and East Syracuse, New York and Ohio. Profits from these grand openings were donated to community initiatives.

GTI continues to strengthen its position in the U.S. cannabis market, focusing on operational efficiency, market expansion, and long-term value creation for shareholders.

Read Next: Ascend Wellness: Q2 'Solid Growth' But Did Not Meet Expectations, Net Loss Reaches $22M, Revises Full Year Guidance

Price Action: The stock was trading at $10.80, up by $0.73 or 7.25% after market close, Monday evening. 

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Cover Photo: AI-generated image.