[PRESS RELEASE] – CHICAGO, May 30, 2025 – Cresco labs inc. is the leading brand of cannabis products and dispensaries operator Sunnyside. Financial and operational results For the year ending March 31, 2025 and for the quarter that ended on March 31. The financial information in this press release, which is presented according to U.S. generally recognized accounting principles (GAAP), is in U.S. dollar amounts, unless indicated otherwise, and can be found on the investor’s website of the company. Here is a link to the article.
First Quarter 2025 Highlights
- First quarter revenue is $166 million. First quarter cash flows of $30 and free cash flow1 The amount is $25,000,000.
- Gross profit is $79 millions. Adjusted gross profit1 Gross margins of adjusted $82 Million1 Revenue is 49%.
- SG&A of $58 million or 35% of revenue.
- Net Loss $15 Million
- First quarter adjusted EBITDA1 Adjusted EBITDA Margin of 36 Million Dollars1 This is 22%.
- Keep the top share in multiple billion-dollar markets. Remaining at the top of multiple multi-billion dollar markets.2
Management Commentary
Charlie Bachtell (CEO and co-founder of Cresco) said, “We have the financial and strategic strength to invest for long term growth, navigate volatility in the market, refinance our debt, and be patient and strategic.”
In Q1, we generated $166 million, a result of our success in reducing AR exposure through limiting wholesale sales to accounts that have credit risks,” said he. “We achieved $82,000,000 in gross profit adjusted and $36,000,000 in EBITDA adjusted. These actions have a positive impact on cash flow. Our operating cash flow was $30 million and we ended the quarter with $162 millions in cash. This is our highest cash balance for the last three years.
We are focused on making sure our balance sheet is in the best possible shape to create long-term values. Cresco Labs is positioned to grow its margins, increase market share and create sustainable growth by being disciplined in our capital deployment.
Balance sheet, liquidity, and other financial information
- At the end of March 2025, assets totaled $311,000,000, with cash and cash equivalents of $159,000,000, as well as restricted cash. Net of discounting and issuing costs, the company’s senior secured debt was $353 million. It also had a mortgage of $18 millions.
- As of 31 March 2025, the total number of shares that were fully converted to voting subordinate shares was 484,592 240.
Meeting Call and Webcast
On June 2, 2025 at 8:45 a.m. ET, the Company is hosting a live webcast/conference call for its results. On June 2, 2020, the Company will hold a webcast and conference call to discuss their financial results. You can access the conference call via webcast You can also access the webcast by calling 1-833 470 1428 (US Toll-Free) or 1-404-975 4848 (US Local), using code 671160. The webcast archive will be accessible for a year through Cresco Labs investor website. Here is a link to the article.
| 1 For more information on the use of non GAAP financial measures by the company, please see “Non GAAP Financial Measures”, at the end this press release. |
| 2 According to Hoodie Analytics. |
Non-GAAP Financial Metrics
The financial information in this release is reported according to U.S. GAAP. However, it also includes non-GAAP measures which do not follow standardized U.S. GAAP definitions. The non-GAAP measures include: earnings before interest, taxes, depreciation, and amortization (EBITDA); adjusted EBITDA; adjusted EBITDA margin; adjusted gross profit; adjusted gross profit margin; adjusted selling, general, and administrative expenses (adjusted SG&A), adjusted SG&A margin; and free cash flow are non-GAAP financial measures and do not have standardized definitions under U.S. GAAP. The company defines these non-GAAP financial measures as follows: EBITDA as net loss (income) before interest, taxes, depreciation, and amortization; adjusted EBITDA as EBITDA less other (expense) income, net, fair value mark-up for acquired inventory, adjustments for acquisition and non-core costs, impairment and share-based compensation; adjusted EBITDA margin as adjusted EBITDA divided by revenues, net; adjusted gross profit as gross profit less fair value mark-up for acquired inventory and adjustments for acquisition and non-core costs; adjusted gross profit margin as adjusted gross profit divided by revenues, net; adjusted SG&A as SG&A less adjustments for acquisition and non-core costs; adjusted SG&A margin as adjusted SG&A divided by revenues, net; and free cash flow as net cash provided by operating activities less purchases of property and equipment and proceeds from tenant improvement allowances. Non-GAAP financial measurements are presented as an additional measure to financial measures which have been calculated in accordance with U.S. GAAP. However, they may not necessarily be comparable to other measures provided by issuers. The supplemental nonGAAP measures have been presented as management evaluated financial results including and without the adjusted items. They believe that these supplemental nonGAAP measures provide additional perspectives and insights in analyzing core operational performance. The U.S. GAAP presented financial measures and these supplemental non-GAAP ones should not be used as substitutes, alternatives or superior measures. They should be used in conjunction. The company, therefore, has provided below a reconciliation of the non-GAAP supplemental financial measures with the financial measures that are most directly comparable and calculated in accordance to U.S. GAAP.