iAnthus Q1 Revenue Declines 14.1% YoY, What About Profit?

iAnthus Capital Holdings, Inc. ITHUF IAN released its financial results for the first quarter ended March 31, 2023, revealing revenue of $36.8 million, a sequential decrease of 2.2% from Q4 2022 and a decrease of 14.1% from the same quarter in the prior year.

Q1 2023 Financial Highlights

• Gross profit of $15.5 million, a sequential decrease of 3.6% from Q4 2022 and a decrease of 31.0% from the same quarter in the prior year.

• Gross margin of 42.2%, relatively flat when compared to Q4 2022 and a decrease of 1036bps from the same quarter in the prior year.

• Net loss of $18.6 million, or a net loss of $0.00 per share, compared to a net loss of $43.7 million or a net loss of $0.01 per share in Q4 2022, and compared to a net loss of $10.1 million, or a net loss of $0.06 per share, in the same quarter in the prior year.

• Adjusted EBITDA of $895,000, a sequential increase from negative $1.0 million in Q4 2022 and a decrease from $3.4 million from the same quarter in the prior year.

Recent Business Updates

• On April 20, 2023, iAnthus' subsidiary in New Jersey (d/b/a MPX New Jersey) commenced adult-use sales at its Atlantic City dispensary, and subsequently entered the adult-use wholesale market in New Jersey.

• On April 26, 2023, MPX New Jersey opened its second location in New Jersey, a medical dispensary in Gloucester Township.

• On May 3, 2023, the Maryland governor signed a bill to regulate cannabis sales, opening a pathway to adult-use legalization with a target start date of July 1, 2023. The company continues to monitor the situation and prepare for the potential to convert its subsidiaries' medical licenses to licenses to operate both medical and adult-use cannabis businesses in the state of Maryland.

Photo by Jeff W on Unsplash

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