Cannabis Co. Agrify Expects To Shrink Net Loss, Expand Gross Profit In Q4

Ancillary cannabis company Agrify Corporation AGFY announced its preliminary unaudited fourth-quarter financial results on Wednesday.

Q4 2023 Financial Outlook

• Net loss is expected to be at $750 000, compared to $2.1 million net loss in the third quarter of 2023, and $58 million loss in the fourth quarter of 2022.
• Loss from operations is expected to decrease by 46% to a historical low of $2.5 million, compared to $4.6 million in the third quarter of 2023.
• Gross profit is expected to increase 105% to $1.9 million, compared to $1 million in the prior period, and a gross loss of $33.5 million in the corresponding quarter of last fiscal year.
• Net cash burn is also expected to be the "lowest in the company history," Agrify said.
• The company expects to be in a position to approach cashflow break-even in the second half of 2024.

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Agrify plans on reporting on its financial results for the fourth quarter and full fiscal year ended December 31, 2023, before the end of March 2024.

In its third-quarter earnings report, published in January, the company revealed a nearly 56% year-over-year decrease in revenue to $3.1 million.

The Michigan-based company also reported a net loss of $2.1 million, or $1.27 per basic and diluted share, compared to a net loss of $57.4 million, or $429.98 per basic and diluted share for the third quarter of last year.

Raymond Chang, the company's chairman and CEO, said at the time, "The historically low net loss of $2.1 million is encouraging and good evidence that we are moving in the right direction.”

AGFY Price Action

Agrify’s shares traded 1.58% higher at $0.579 per share during the pre-market session on Wednesday morning.

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