The Public Cannabis Company Revenue & Income Tracker, managed by New Cannabis Ventures, ranks the top revenue producing cannabis companies. This update is our first since November, when we reviewed the Q3 reports.
Tracker Rules
This data-driven, fact-based tracker will continually update based on new financial filings so that readers can stay up to date. Companies must file with the SEC or SEDAR and be current to be considered for inclusion. When we launched this resource in May 2019, companies with quarterly revenue in excess of US$2.5 million qualified. As the industry has scaled and as more companies have gone public, we have raised the minimum several times subsequently, including a move to US$5 million in October 2019, to US$7.5 million in June 2020, to US$10 million in November 2020, US$12.5 million in August 2021 and US$25 million in September 2021. Due to the rapid growth in the cannabis industry, we raised the minimum again in May 2024. The senior list has a minimum of US$50 million (C$71.1 million), and the junior list now has a minimum of US$25 million (C$35.6 million).
A Note About Adjusted Operating Income
In May 2019, we added an additional metric, “Adjusted Operating Income” that we detailed in our newsletter. The calculation takes the reported operating income and adjusts it for any changes in the fair value of biological assets required under IFRS accounting. We believe that this adjustment improves comparability for the companies across IFRS and GAAP accounting. We note that often operating income can include one-time items like stock compensation, inventory write-downs or public listing expenses, and we recommend that readers understand how these non-cash items can impact quarterly financials. Many companies have moved from IFRS to U.S. GAAP accounting, which has reduced our need to make adjustments. Please note that our rankings include only actual reported revenue and not pro forma revenue. We also note that companies with non-cannabis operations must provide segment-level financial reports that detail not only revenue but also operating profit to be have their operating profit included in the tracker. Currently, Aurora Cannabis (NASDAQ: ACB) (TSX: ACB), Jazz Pharma (NASDAQ: JAZZ) and Tilray (TSX: TLRY) (NASDAQ: TLRY) aren’t providing this information.
Tracker Inclusion Updates
At the time of our last update on October 30th, 19 companies qualified for inclusion on the senior lists, including 16 filing in U.S. dollars and 3 in the Canadian currency, and the junior list had 17 companies. Now, 16 companies that file in U.S. dollars and 4 that file in Canadian dollars are qualifying for the senior lists, a total now of 20. The junior list includes 11 companies reporting in U.S. dollars and 1 in Canadian dollars. On a combined basis, the Public Cannabis Company Revenue & Income Tracker now includes 32 companies. Four companies were removed from the Junior List due to M&A, bankruptcy or being late in SEC filings. Of the Canadian cannabis reporters, Canopy Growth returned to the Senior List.
Included Companies That Reported Since November
Since our last update, some companies not on December year-ends have reported, and a few have already reported that are on a December year-end.
Senior and Junior – American Dollar Reporting
Scotts Miracle-Gro (NYSE: SMG) and Innovative Industrial Properties (NYSE: IIPR) have already reported among the the Senior List members the quarter ending 12/31, and Tilray Brands (NASDAQ: TLRY) (TSX: TLRY) reported its fiscal Q2 that ended in November. Each of them saw cannabis-related revenue decline from a year earlier.
Looking ahead, many companies have scheduled calls already, including 4 of the top 5 MSOs. In order by Q3 revenue, here are the expectations for the top 5 MSOs for Q4 according to Koyfin:
- Curaleaf (OTC: CURLF) (TSX: CURA) – revenue is expected to decline 4% from a year earlier to $332 million with adjusted EBITDA of $75 million, down 9%
- Green Thumb Industries (OTC: GTBIF) (CSE: GTII) – revenue is expected to increase 4% from a year earlier to $288 million with adjusted EBITDA dropping 4% to $87 million
- Trulieve (OTC: TCNNF) (CSE: TRUL) – revenue is expected to increase 2% from a year earlier to $293 million with adjusted EBITDA rising 7% to $94 million
- Verano Holdings (OTC: VRNOF) (NEO: VRNO) – revenue is expected to drop 8% to $219 million with adjusted EBITDA dropping 12% to $65 million
- Cresco Labs (OTC: CRLBF) (CSE: CL) – revenue is expected to fall 9% to $172 million with adjusted EBITDA declining 17% to $45 million
Senior and Junior – Canadian Dollar Reporting
Since the last update we provided, four Canadian companies have reported. High Tide (NASDAQ: HITI) (TSXV: HITI) continues to lead these reporters in revenue. Aurora Cannabis (NASDAQ: ACB) (TSX: ACB) captured the attention of traders and investors. Canopy Growth (NASDAQ: CGC) (TSX: WEED) saw strong growth in revenue but a continued large operating loss.
High Tide will be reporting its fiscal Q1 before the 03/17, and SNDL (NASDAQ: SNDL) will report its Q4 before the end of March.
