Key U.S. Cannabis Players Post Healthy Revenue Gains in Q1
May 17, 2024Three of the leading U.S. cannabis companies reported Q1 2024 results last week, with all posting solid revenue gains amid the ever-evolving cannabis landscape. The companies—Curaleaf, Trulieve, and Green Thumb—cover a variety of medical and adult use markets across the U.S. and their results show a snapshot of the industry just before the federal government rechedules cannabis as a Schedule III drug instead of a Schedule I drug. This trio of companies release cannabis products across form factors, covering flower, vape pens, edibles, and drinks, among other forms.
For its fiscal first quarter, Curaleaf reported revenue up 2% to $339 million with an adjusted gross margin of 48%. The company’s gross profit was $160.9 million. Adjusted EBITDA reached $77 million, or 23% of revenue, which the company reports is an improvement of 40 basis points over Q1 2023. Operating cash flow for the quarter was $46 million, and the company’s free cash flow was at $33 million. According to Curaleaf executive chairman Boris Jordan, the company has already started to direct some of that money toward shoring up the company’s financials for the future, pointing to a $15 million bond repurchase made in April.
“At this important inflection point in our industry and our Company, on the heels of rescheduling news, our expanded custody solutions and the advances in Europe, Curaleaf has evolved from an MSO to an MCO, a multi-country operator,” said Jordan. “With each ensuing quarter, we will create further separation from our peers because of the strategic global lens through which we operate. We’re very encouraged by the catalysts thus far, with more on the horizon.”
Highlights for Curaleaf’s first quarter include the company’s first retail shop in New York’s Hudson Valley, which brings Curaleaf to 145 locations across the U.S. In addition, Curaleaf launched Stir by Zero Proof, a new cannabis beverage, in Illinois. Also, the company acquired Northern Green Canada during Q1, solidifying its ability to supply cannabis that meets the EU’s GMP (good manufacturing practices) standard.
For Trulieve, Q1 was even stronger, with the Florida-based company reporting revenues up 4% to $298 million. Gross profit was at $174 million with the company reporting a gross margin of 58%. Adjusted EBITDA was $106 million or 36% of revenue. The company points to its strong retail network as a source of its success, with 96% of revenue coming from retail.
“The team has done a phenomenal job carrying forward the momentum from last year, driving further improvements in production and retail,” Kim Rivers, Trulieve CEO. “Given our financial performance and significant scale in key markets, Trulieve is best positioned for the coming wave of growth catalysts.”
In Q1 Trulieve opened three new dispensaries in Cocoa Beach, Palm Bay, and Pinellas Park, Florida, with an additional location opening in North Palm Beach after the end of the quarter. These additions, bring Trulieve’s retail footprint to 196 locations, with 31% outside of Florida.
Finally, Green Thumb industries, based in Chicago and Vancouver, posted revenue growth of 11% to $276 million. Adjusted EBITDA was at $90.5 million or 32.8% of revenue, and gross profit was at $144.9 million. The company pointed to the launch of adult-use sales in Maryland as well as strong sales in Green Thumb’s Rise Dispensaries. “We have the pieces in place to execute on our strategy to create award-winning brands and build customer loyalty,” said Ben Kovler, founder, chairman, and CEO of Green Thumb. “As we round out our tenth year as a company, we believe we have a clear vision, a healthy balance sheet and the best team in the business to execute the next decade of the Green Thumb story.”—Shane English
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