Cresco Labs Nears $100 Million Quarter, Citing Brand Traction And Retail GrowthAugust 25, 2020
Chicago-based Cresco Labs reported record revenue of $94.3 million for its second quarter, ended June 30. Every market the company is present in logged sequential revenue growth over 30%, with the exception of Massachusetts, where adult-use cannabis sales were halted for two months due to the pandemic. Cresco derived nearly $55 million of its revenue total from wholesaling its branded cannabis products while the remaining $39 million came from its 17 Sunnyside retail locations. Wholesale growth was driven by gains in California and first harvests from expanded cultivation operations in Illinois and Pennsylvania.
“While Q2 continued to be about building, scaling, and refining our operations in the largest and most important cannabis markets in the U.S., we are also beginning to see the fruits of our labor come to bear,” said Cresco CEO Charlie Bachtell. “We are accelerating growth and beginning to generate substantial leverage as we scale our operations and benefit from the investments we’ve made over the past 12 months.”
Factoring in various expenses, Cresco took a net loss of $4.7 million in the quarter, an improvement of nearly $9 million from the quarter prior. Revenue gains continue to outpace rising operational costs, making for an adjusted EBITDA of $16.5 million, up $13.3 million sequentially.—Danny SullivanSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning. You will also receive the Cannabis edition as part of your subscription.