Cresco Labs Reports Consistent Profitability Improvement with Second Quarter 2024 Financial Results
Over 800 basis point year over year improvement in Adjusted EBITDA Margin 1
CHICAGO–(BUSINESS WIRE)– Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) (FSE: 6CQ) (“ Cresco Labs ” or the “ Company ”), the industry leader in branded cannabis products with a portfolio of America’s most popular brands and the operator of Sunnyside dispensaries, today released its financial and operating results for the second quarter ended June 30, 2024. All financial information presented in this release is reported in accordance with U.S. GAAP and in U.S. dollars, unless otherwise indicated, and is available on the Company’s investor website, here .
Second Quarter 2024 Highlights
- Second quarter revenue of $184 million.
- Gross profit of $95 million. Adjusted gross profit¹ of $97 million up 4% year-over-year; and an Adjusted gross margin¹ of 52% of revenue, a 570 bps improvement.
- SG&A of $54 million. Reduced Adjusted SG&A¹ by 14% year-over-year to $53 million, or 29% of revenue.
- Net loss of $51 million which includes a one-time $61 million charge in the quarter related to the Company’s new tax position, as further described below.
- Second quarter Adjusted EBITDA¹ of $54 million, up 33% year-over-year; and Adjusted EBITDA margin 1 of 29%, an 880 bps improvement.
- Second quarter operating cash flow of $17 million and Free Cash Flow¹ of $11 million.
- Retained the No. 1 share position in Illinois, Pennsylvania and Massachusetts² .
¹See “Non-GAAP Financial Measures” at the end of this press release for more information regarding the Company’s use of non-GAAP financial measures.
²According to BDSA.
Management Commentary
“Our Q2 results demonstrate the sustainability of the improvements we’ve made to the business over the past year with $184 million in revenue at a 29% Adjusted EBITDA margin 1 . It is clear our strategy is working; we are creating the brands consumers love and delivering best-in-class retail operations through Sunnyside. So far this year we’ve generated over twice as much operating cash flow than the first half of last year and we are putting it to work strengthening our balance sheet, investing in our core growth states with adult-use optionality, and exploring accretive, incremental M&A and other business opportunities.
We are seeing growing momentum in the industry. The DEA’s comment period on rescheduling recently closed, with 92% of over 40,000 comments submitted in overwhelming support for reclassifying cannabis as a Schedule III substance or declassifying cannabis entirely. Recent polls also show energy swelling around Florida’s Amendment 3 initiative to legalize adult-use.
As the pace of reform challenges even the most patient of us, it’s important for all stakeholders to remember that cannabis reform consistently polls higher than any candidate in any election, and the public has made it clear that it’s time for change. Reform is imminent and we are ready,” said Charles Bachtell, CEO of Cresco Labs.
