4Front Earnings + Call Notes

Big Daddy opens in Illinois.

4Front Earnings

Q324 Revenue of $ 17.1 Million

Q3 AEBITDA1 of $1.0 Million

Matteson Facility Nears Full Operational Capacity in Illinois, Positioning to Meet Growing Market Demand.

4Front Achieves over 56% Quarterly Growth in Massachusetts Wholesale, with Illinois Poised for Increased Growth as Matteson Facility Unlocks Scalable Production Capacity.

Washington Facilities Returns to Revenue Highs Showcasing Strength in Competitive Markets.

"I'm encouraged by the solid progress we've made this quarter, reflecting 4Front's strategic focus on disciplined growth and operational efficiency.

Our recent achievements are evident in Illinois, where demand for our products has been incredibly strong. With our flagship Matteson facility scaling up to meet this demand, we are well-positioned to capture market share, especially in this supply-constrained market.

Early responses to Matteson's production have been highly positive, and we've secured significant supply agreements that de-risk our growth strategy as we continue to ramp up."

"In Massachusetts, we've made strides in expanding wholesale, achieving 56% QoQ growth despite challenging market conditions. Our emphasis on quality has been reinforced by consistent 100% pass rates on our cultivation tests, supporting both our wholesale and retail channels as we build brand loyalty.

Washington, too, saw standout performance with a return to record revenues, driven by consumer-focused product innovation. These results underscore our ability to execute in competitive markets, setting the bar for our operations in Illinois and Massachusetts."

Looking ahead, despite the uncertainties surrounding federal cannabis reform, we're optimistic, especially given the signs that we may have unexpected advocates in the incoming administration. Paired with strong momentum across our operations and the scaling up of our Matteson facility, we're confident entering Q4 and are ready to return to growth and generate sustainable positive cash flows from operations.

We're taking decisive steps to solidify our financial foundation and expand our operational reach, positioning 4Front to seize future opportunities and create sustained value for our shareholders." Andrew Thut, CEO of 4Front Ventures.

Call Notes