Trulieve Earnings + Call Notes
U.S. cannabis leader reports Q4/FY25.
$293M Revs; est. $297.9M
$105M AEBITDA; est. $102.6M
$175 M GP; est. $177.1M
$15.3M OI; est. $52.9M
60% GM; est. 59.5%
($43M) NI; est. ($7.3M)
($ .22 ) EPS; est. ($0.03)
Full year revenue of $1.2 billion, with 60% gross margin
Record 2025 CFO of $273 million and FCF of $229 million*
Record 50.1 million branded product units sold in 2025, +5% vs. last year
Management Commentary
“We finished the year strong, winning a conditional license in Texas and repositioning our debt. With rescheduling on the horizon, Trulieve is carrying the momentum into 2026, prioritizing expanded access, loyal customers, branded products and growth initiatives.” Kim Rivers, Trulieve CEO.
Call Notes + Observations
Record units sold, industry leading margins, robust cash generation.
Won TX license in December.
Repositioned debt, reducing leverage and interest expense.
Rescheduling signals long overdue canna reform is achievable.
$1.2b FY’25 revs. Traffic/units sold up 5% each.
$293m revs, up 2% QoQ, in-line w/ guidance.
60% GMs for Q4 and FY’25.
36% adj EBITDA margin due to expense control.
$273m FY’25 CFFO, above $250m guidance.
$256m cash.
Pressure on retail revs offset by improved traffic and units sold.
Wholesale revs up 25% YoY in FY’25.
Plan to grow wholesale business in FY’26.
Focusing efforts on:
1) expanding access,
2) growing customer base,
3) elevating branded product portfolio,
4) investing in growth initiatives.
FL A/U campaign is addressing invalidation of signatures that prevented A/U vote threshold.
Will have answers in coming months as litigation unfolds.
PA A/U has been called on by Governor.
Optimistic a compromise could be reached.
135,000 patients today in TX program.
Poised for meaningful growth over next few years.
Investing in major AI project this year.
Will accelerate hyper personalization of customer outreach.
Launched mobile app in FL for November.
Over 115k customers downloaded app, 3.5m user sessions.
Launching app in additional markets this year.
Rewards program grew 12% this quarter to 915k members.
Rewards customers spend 2.5x more.
70% retention; 78% retention in medical-only markets.
Sold over 15m branded product units in ’25.
Value brands represented almost 50% of products sold.
New brand development ongoing, released 175 SKUs in ’25.
233 retail locations and over 4m sq ft of production capacity.
Adding at least 5 retail locations in ’26.
^ could expand based on reg approval in TX.
Q4 revs down 3% YoY, up 2% QoQ.
60% Q4 GM.
Consistent w/ prior year.
Expect quarterly GM to fluctuate.
FY’25 SG&A of $445m, 38% of revenues (vs. 43% of revenues in ’24).
Q4 SG&A of $126m, 43% of revenues. Q4 Adj SG&A declined to 30% of revs.
Q4 net loss of ($43m).
Q4 Adj EBITDA of $105m, 36% margin.
Received tax refunds totalling $114m.
Redeemed $368m senior notes and completed $200m private placement.
$256m cash
FY’25 $273m OPCF, $229m FCF.
Q1 revs down low-to-mid-single digits.
GMs expected to fluctuate QoQ, but broadly in-line w/ recent performance.
FY’26 OPCF of at least $250m and CAPEX of at least $45m.
Plan to open at least 5 new stores, at least 5 relocations.
^ and refresh at least 40 stores in ’26.
AI project will allow leaning into data in a more robust way, to speak to individuals.
^ demographic info, purchase history, purchasing time, etc.
^ will start to see returns on AI investment in 2H ’26.
Received list of diligence follow ups from TX this week.
One of the most attractive market opportunities since FL.
FL Supreme Court hearing on March 3, will make decision on disallowed ballots then.
Rewards program implementation has been a key driver of growth.
UTP is totality, management doesn’t believe will ever have to pay that amount.
Upon rescheduling, believe that accrual will stop.
/end
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CB1 has a position and nothing contained herein should be considered advice.