Canada · Delayed Price · Currency is CAD Cresco Labs Earnings Call Transcripts
Fiscal Year 2025
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Q4 saw $162M in revenue and margin expansion, with strong cash flow and a focus on core markets. Exiting California and a robust M&A pipeline position the company for strategic growth, while price compression and regulatory changes remain key risks.
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Q3 saw stable revenue and profitability, with strong wholesale growth offsetting retail price pressure. Debt refinancing and a California exit strengthened the balance sheet, while new market entries and M&A opportunities set the stage for 2026 growth.
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The meeting confirmed quorum, approved all resolutions including director elections, auditor appointment, and the awards exchange program, and provided shareholders with a Q&A opportunity after formal business concluded.
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Q2 2025 saw $164M revenue and $41M adjusted EBITDA, with strong market share in core states and a focus on operational efficiency. Debt refinancing and exiting California strengthen the balance sheet, while new capacity and disciplined M&A position for future growth.
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Q1 2025 saw $166M revenue, $36M adjusted EBITDA, and record $162M cash, driven by disciplined AR management and focus on profitable sales. Margin pressure and slight revenue dip expected in Q2 due to Illinois system conversion, but new stores and innovation should offset in H2.
Fiscal Year 2024
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2024 revenue declined 6% to $724M, but profitability improved with adjusted EBITDA up 15% to $200M and record $132M operating cash flow. Price compression and supply constraints pressured Q4, but production ramp-up and strategic expansion in core and new markets set the stage for long-term growth.
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Q3 saw $180M revenue, 53% adjusted gross margin, and record $49M operating cash flow, despite a 2% sequential revenue dip from Illinois softness and price compression. Leading market share was maintained in key states, with continued focus on profitability and strategic reinvestment.
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Q2 2024 saw $184M revenue, 52% adjusted gross margin, and $54M adjusted EBITDA, with strong year-over-year improvements. Strategic investments in Ohio, Pennsylvania, and Florida position the company for growth as adult-use markets expand, while a new tax position is set to deliver $65M in 2024 savings.
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Shareholders approved all resolutions, including director elections, auditor appointment, amendments to the Long-Term Incentive Plan, and the Option Exchange Program. All motions passed by the required majority, with opportunities for stakeholder questions after formal business.