Cannabist Earnings + Call Notes

U.S. cannabis company reports Q324

Cannabist Earnings

$115M Revs; est. $122.8M
$14.8M AEBITDA; est. $17.6M
$43.8M GP; est. $47.4M
$(5.6 M) OI; est. $2.6M
38.2% GM; est. 38.6%
($1.76 M) NI; est. ($24.5M)
($0 ) EPS; est. ($0.035)

Top 5 Markets by Revenue in Q3: Colorado, Maryland, New Jersey, Ohio, Virginia

Top 5 Markets by Adjusted EBITDA in Q3: Colorado, Maryland, New Jersey, Ohio, Virginia

“The results in the third quarter are indicative of the continued transformation that is underway at The Cannabist Company as we strive to build a better business by strategically reshaping our footprint, streamlining operations, and derisking the balance sheet. In the third quarter, we closed on significant transactions with the sale of Arizona and Eastern Virginia assets for total consideration of approximately $105 million, bringing a significant capital infusion into the business and strengthening our balance sheet.

We have exited, or are in the process of exiting, unprofitable and underperforming locations in Florida; Washington, D.C.; and Boston. We achieved continued improvement in wholesale and will continue to lean into markets where we have additional capacity and opportunity to grow. In addition, we were extremely well prepared for the transition to adult use in Ohio, which drove an outstanding performance in the quarter.

Our optimization work is not yet done. Moving ahead into the fourth quarter and next year, we are continuing on our path to enhanced profitability. Our AEBITDA margin target during 2025 remains above 20%. We will have a smaller, leaner operating footprint and scaled corporate overhead to match. We have exciting growth catalysts in 2025, including Adult Use in Delaware and additional retail locations in top markets such as New Jersey, Virginia, and Ohio.”

David Hart, CEO of The Cannabist Company.

Call Notes