Acreage Cannabis Co. Q2 Revenue Spikes 63% YoY Reaches $44.2M, Achieves Second Consecutive Quarter Of Positive Adjusted EBITDA

Multi-state cannabis operator Acreage Holdings, Inc. ACRG ACRGF revealed its financial results Monday for the second quarter of 2021, disclosing consolidated revenue of $44.2 million, up by 63% from the same period in 2020 and 15% from the previous quarter.

Second Quarter Key Figures 

• Net loss was of $2.6 million compared to a net loss of $37.2 million in the same quarter last year;
• Acreage achieved positive adjusted EBITDA of $8.1 million, which compares to an adjusted EBITDA loss of $6.5 million in the same quarter of 2020; this is the second consecutive quarter of positive adjusted EBITDA;
• Gross margin was 54.0%, up by 12.6 percentage points from the corresponding period in 2020;
• Retail revenue also improved, jumping 43% from the second quarter of 2020, and reaching $28.4 million;
• Wholesale revenue hit $15.5 million, representing a 117% improvement from the same period of 2020;
• Total gross profit reached $23.9 million, up by $12.7 million from the corresponding quarter of the prior year;
• Total operating expenses were $30.6 million, 39% lower than in the second quarter of fiscal 2020;

At the end of the quarter, Acreage held $37.8 million in cash and restricted cash. “I am once again pleased with our financial performance in the second quarter as we reported our second consecutive quarter of positive Adjusted EBITDA," Peter Caldini, CEO of Acreage stated. "Additionally, our revenue growth accelerated to 63% year over year, and our gross margin remained strong at 54.0%. On an operating basis, our team continues to be focused on both driving profitability and accelerating our growth in our core markets.”

Second Quarter Business Milestones 

• Acreage finalized the sale of its Florida operations for a total of $60.0 million;
• It used the collected net proceeds from the sale of its Florida operations to repay $44.1 million in debt; 
• The company improved its production capacity in Pennsylvania by 20%;
• In Illinois, Acreage finalized the buildout of its cultivation and processing facility, adding 80,000 sq. ft. of processing capacities;
• In the state of Connecticut, it rolled out an improved loyalty program;
• In Maine, Acreage transformed to recreational use and consolidated two dispensaries, having in total three consolidated adult-use stores in the state.

Price Action 

Acreage shares closed Monday's market session 1.25% higher at $3.22 per share. 

Photo: Courtesy of Jeff W on Unsplash