Is Delta 9 Cannabis Inc.'s Q2 2023 Revenue Surge Enough To Offset Net Losses?

Delta 9 Cannabis Inc. DLTNF released its financial results Monday for the three-month period ending June 30, 2022.

During the second quarter of 2022, Delta 9 reported a net loss of $(3.4) million from operations, a notable contrast to the $(0.8) million loss incurred in the same quarter last year.

Despite this, the company's net revenue showcased growth, reaching CAD $17.5 million for the quarter, up by 4% from the previous year's CAD 16.75 million.

Sequentially, Delta's net revenue surged by 40% from CAD 12.5 million in the preceding quarter, ending March 31, 2022.

"Our Q2 results show robust growth with improved margins, driven by our strategic plan," stated John Arbuthnot, CEO of Delta 9. "We're capitalizing on growth opportunities, expanding retail stores nationwide, and entering new markets. Our solid balance sheet allowed a $11.8 million convertible debt repurchase in July. This supports organic growth and strategic M&A pursuits."

Profit Margin And EBITDA Performance

  • Gross profits for the second quarter of 2022 amounted to CAD 4.6 million, reflecting a 6% decrease compared to the same period in the prior year when it stood at CAD 4.9 million. Consequently, the gross margin experienced a marginal decline.
  • Delta 9's adjusted EBITDA for the second quarter of 2022 indicated a loss of $(0.4) million, diverging from the positive adjusted EBITDA of CAD 1.2 million reported in the same quarter last year.

The Benzinga Cannabis Capital Conference, the place where deals get done, is returning to Chicago this Sept 27-28 for its 17th edition. Get your tickets today before prices increase and secure a spot at the epicenter of cannabis investment and branding.

Photo: wal_172619 via Pixabay

Market News and Data brought to you by Benzinga APIs
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: CannabisEarningsNewsPenny StocksMarketsDelta 9 Cannabisearnings reportsJohn Arbuthnot
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

The Top Cannabis Event In New Jersey

Join the Benzinga Cannabis Market Spotlight in New Jersey on June 17th! Grow your business, raise money and capitalize on the booming NJ recreational market. Don’t miss this must-attend event in New Brunswick. Secure your tickets now. Very few spots are left. Use the code "JAVIER20" for 20% off!