MariMed's Q3 Revenue Slightly Up YoY As Net Loss Improves, Revises Guidance

After the market closed Wednesday, multi-state cannabis operator MariMed Inc. MRMD MRMD reported its financial results for the third quarter ended Sep. 30, 2024. The Massachusetts-headquartered marijuana company disclosed quarterly revenue of $40.6 million, up from $38.8 million in the same period last year.

"We reported year-over-year and sequential revenue growth, sequential EBITDA and net income improvement and we continue to generate positive operating cash flow," stated CEO Jon Levine. "Our wholesale business continues to outpace the industry with another quarter of at least 20% year-over-year growth. Despite continued pressure on U.S. consumers, our retail business transactions grew year-over-year, driven by both same-store sales growth and the new dispensaries opened in the past 12 months. Our heavy investment phase is complete, as are the significant pre-opening expenses we incurred the past several years. We remain highly confident in our ability to grow revenue and profits long-term as our new assets ramp to their potential."

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Q3 Financial Highlights

• Gross profit was $16.78 million, compared to $16.83 million in the same quarter of 2023.
• Gross margin was 41.3%, compared to 43.4% in the corresponding period last year.
• Net loss amounted to $995,000 compared to net loss of $4.27 million in the third quarter of 2023.
• Adjusted EBITDA was $4.68 million, compared to adjusted EBITDA of $6.06 million in the corresponding period a year ago.

2024 Guidance

MariMed's initial full-year 2024 financial targets reflected the organic growth of its existing operational assets, excluding any new revenue-generating projects that require regulatory approvals. Delays in securing regulatory approvals for these new assets have led to higher-than-anticipated pre-opening costs and a longer ramp-up period than initially forecasted. Consequently, the company updated its full-year 2024 financial targets as follows:

• Revenue Growth: Increased to 6%–8%, from the previous target of 5%–7%.
• Non-GAAP Adjusted EBITDA: Revised to a decline of 18%–20%, compared to the previous target of 0%–2% growth.
• Capital Expenditures: Revised to $11 million, up from the previous target of $10 million.

Price Action

MariMed shares closed Wednesday's market session 0.67% higher at 15 cents per share.

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