Cannabis Co. Cresco Labs' 93% YoY Improvement In Net Loss, $49M Operating Cash Flow In Q3

Cresco Labs Inc. CL CRLBF 6CQ a company behind Sunnyside dispensaries, released its financial and operating results on Friday for the third quarter ended September 30, 2024.

"So far this year, we've generated $103 million in operating cashflow, enabling us to reinvest in our core, and to explore new markets and growth verticals, all while improving our balance sheet and paying down debt," CEO and co-founderCharlie Bachtell said.

Q3 2024 Financial Highlights

• Third quarter revenue of $179.8 million representing a 3.2% sequential drop and a 5.7% decrease from the same quarter of last year.
• Gross profit of $93.4 million, compared to a $93.6 million gross profit in the corresponding period of last year, and $94.8 million gross profit in the previous period.
• Adjusted gross profit, a non-GAAP measure, was $95.3 million, and an adjusted gross margin of 53% of revenue, a 250 bps improvement year-over-year.
• Selling, general and administrative expenses of $57 million. Reduced adjusted SG&A by 6% year-over-year to $53 million, or 30% of revenue.
• Net loss was $7.7 million, down 93% year-over-year and 84% quarter-over-quarter.
• Third quarter Adjusted EBITDA came in positive at $51 million, up 5% year-over-year; Adjusted EBITDA margin of 29%, a 280 bps improvement year-over-year.
• Record third-quarter operating cash flow of $49 million and free cash flow of $43 million.
• Adjusted EBITDA, a non-GAAP measure, came in positive at $51.3 million, down from an adjusted EBITDA gain of $49 million in the prior year's period and $53.9 million in the prior quarter.

Read Also: Cannabis Co. Cresco Lab’s Q2 Gross Profit Increases Over 9% YoY, Reports Nearly 7% Drop In Revenue

As of Sept. 30, 2024, assets were $312 million, including cash, cash equivalents and restricted cash of $157 million.

The company had senior secured term loan debt, net of discount and issuance costs, of $390 million and a mortgage loan, net of discount and issuance costs of $18 million.

On Oct. 25, 2024, the company repurchased a $40 million principal amount of its senior loan and paid $0.3 million of accrued Interest.

Cresco Labs made its debut in Chicago in 2013 when Illinois passed the Compassionate Use of Medical Cannabis Act. “The company's goal and that of its management team has been to help normalize and professionalize this industry,” Bachtell told the crowd gathered at the Benzinga Cannabis Capital Conference in Chicago in early October.

Read Next:

• Is Cresco Labs An Overlooked Cannabis Stock? Market Potential In Ohio, Florida & Pennsylvania Promise Opportunity