New York's The Cannabist Company: Q2 Revenue Declines 3% YoY, Reduces Net Loss As It 'Strives To Build A Better Business'

Benzinga08-08

The Cannabist Company Holdings Inc.(Cboe CA:CBST) (OTCQX:CBSTF) (FSE:3LP) reported its financial and operating results Thursday for the second quarter ended June 30, 2024. The New York-based cannabis operator disclosed quarterly revenue of $125.19 million, compared to $129.24 million in the same period last year.

"Our second quarter results show continued progress in our efforts to build a better business, as we transform our operations and reshape our footprint, all in the process of targeting enhanced profitability," stated CEO David Hart. "We saw sequential improvement in revenue, gross profit, Adjusted EBITDA and Adjusted EBITDA margin, and the green shoots that we referenced last quarter continued to flourish. We've announced several transactions that will have a marked impact on the business in aggregate, enabling us to reduce costs, de-risk the balance sheet, and progress towards free cash flow generation."

Read Also: $105M Deal: Verano To Acquire Cannabist Co.’s Operations In Virginia And Arizona

Q2 2024 Financial Highlights Compared To Q2 2023

  • Gross profit was $48.05 million, compared to $52.12 million.
  • Adjusted EBITDA was a gain of $17.54 million, compared to $20.32 million.
  • Net loss amounted to ($13.64 million), versus a loss of ($29.04 million).
  • Cash from operations was negative ($3 million), compared to negative ($6.2 million) in Q1.
  • At the end of the reporting period on June 30, The Cannabist Company had $22 million in cash, compared to $35.76 million on Dec. 31.

"The expansion of successful brand partnerships, a growing wholesale business, and increased shift toward finished goods have all contributed to another sequential improvement in gross margin for the wholesale segment," Hart continued. "As we look ahead for the second half of 2024, we are pleased with the pace of the transition to adult use in Ohio, and are encouraged by continued growth in our mid-Atlantic markets such as Maryland, New Jersey and Virginia. The first half of 2024 has proven to be transformative for The Cannabist Company, and we look forward to further progress as we strive to build a better business."

Price Action

The Cannabist Company shares closed Wednesday's market session 1.70% lower at $0.23 per share.

Read Next:

  • Cannabis Is Flying Off The Shelves In These Five States, Earning Billions For Marijuana Companies

Photo: Courtesy of iQoncept via Shutterstock

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