Cresco Labs Disciplined strategy drives record cash flow in 2024 financial results – MEDCAN24

[PRESS RELEASE] – CHICAGO, March 12, 2025 – Cresco Labs, Inc. the leader in the branded cannabis industry with an array of America’s top brands, and operator of Sunnyside Dispensaries released their financial and operational results for the year and fourth quarter ended December 31, 2024. This release contains all the financial information in U.S. dollar terms and according to U.S. commonly accepted accounting practices (GAAP), unless stated otherwise. The full report is on Sunnyside’s Investor website. You can read more about it here.

Highlights of Fiscal Year 2024

• Revenues of $724 millions. Cash flow from operations of $132 Million and Free Cash Flow¹ There are 114 million dollars.
• Gross profit is $364 millions. Adjusted gross profit¹ Gross margins of adjusted $374 Million¹ The increase is 270 basis points.
• SG&A of $221 million. Reduced adjusted SG&A¹ By 12% over the previous year, to $212 millions or 29% revenue.
• The company expects to benefit from the updated 280E positions, initially described as early in 2024.
• Adjusted EBITDA¹ EBITDA Margin of adjusted $200 Million, an increase of 15% over the previous year.¹ The improvement is nearly 510bps year-overyear.
• Keep the top share position in Illinois, Pennsylvania and Massachusetts for the full year. For the entire year, maintains No.1 share positions in Illinois Pennsylvania and Massachusetts.²

Fourth Quarter 2024 Highlights

• Fourth quarter revenue is $176 million. Cash flow from operations of $29 Million and cash flow free for the Fourth Quarter.¹ 27 million dollars.
• Gross profit $84 Million. Adjusted gross profit¹ Gross margins of $87 Million and Adjusted Gross Margin¹ Half of the revenue is a significant amount.
• SG&A of $56 million or 32% of revenue.
• Profit of $0.4 million.
• Fourth quarter adjusted EBITDA¹ EBITDA Margin Adjusted to $42 Million¹ This is 24%.

Management Commentary

“In 2024, the team executed with discipline—streamlining operations, prioritizing profitability, and generating record free cash flow,” Cresco Labs CEO and co-founder Charlie Bachtell said. Our foundation has never been stronger. We have $132 million operating cash flow and a brand that is the leader in its core markets. Retail productivity also outperforms industry standards. We will extend our strategic capital deployment focus in 2025 to maximize growth and returns. This is a simple approach: Execute at your highest level, generate money, then reinvest into high-ROI investments and repeat.

“Kentucky is our first of these new market expansions—a strategic addition backed by clear regulations. Our canopy is up to 25.000 square feet, more than 20% the allocation of Kentucky. This allows us to scale efficiently, serve patients quickly, and reinvest in our operations—just as we have in Illinois, Pennsylvania, and Ohio. “Congratulations to Cresco for a fantastic 2024. Let’s do it again in 2025!”

 Balance sheet, liquidity, and other financial information

• At the end of 2024 (Dec. 31), current assets totaled $294,000,000, with cash, cash-equivalents and restricted cash amounting to $141,000,000. The senior secured loan debt of the company was 352 million dollars, net discount and issue costs. It also had a mortgage of 18 million dollars, net discount and issue costs.
• The company paid interest of $0.3 Million and repurchased our $40,000,000 senior loan on October 25, 2024. On this repurchase, there were no exit or prepayment fees.
• The total shares, on a basis of fully converted shares to subordinate voting securities as at December 31, 2024 was 474.236.616.

Non-GAAP financial measures

This press release includes non-GAAP metrics that are not defined by U.S. GAAP. 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. These non-GAAP measures are provided as additional information to those financial measures calculated and reported in accordance to U.S. GAAP. They may or may not be comparable with similar measures from other issuers. Management has included these supplemental non GAAP financial measurements because they have evaluated financial results with and without adjusted items. These non-GAAP measures also provide added perspective when analysing the core operational performance of the company. The supplemental nonGAAP measures are not to be viewed as superior, substitutes or alternatives to the U.S. GAAP measures, but should be regarded in conjunction with them. In order to provide a direct comparison between the nonGAAP financial measures presented here and those calculated in accordance with U.S. GAAP, the company included below a reconciliation of these nonGAAP measures.