Cresco Labs Inc. CL CRLBF 6CQ released its financial and operating results on Wednesday for the third quarter ended Sept. 30, 2023, revealing a 9.4% year-over-year decrease in revenue to $190.5 million.
In the first quarter of fiscal 2023, the company initiated the year-of-the-core strategy, resulting in an adjusted gross margin increase of over 480 bps, a $40 000 decrease in adjusted SG&A on an annualized basis and an over 1000 bps increase in adjusted EBITDA margin. The company also generated $62 million in operating cash flow through the first nine months of the year.
“Our third quarter results demonstrate our ability to drive solid performance, with strong gains to our margin and operating cash flow, by continuing to execute on a strategy where we win in our core markets and with our core stores, core brands, and core products,” Cresco's CEO Charles Bachtell said.
See also: Cresco Labs Unlocks $32M In Non-Dilutive Capital Strengthening Overall Business
Q3 2023 Financial Results
- Gross profit totaled $93.6 million, down from $99.1 million in the prior year’s period, and up from $86.7 million from the previous quarter.
- Loss from operations was $107.8 million compared to $10.8 million loss in the second quarter of 2023, and $16.2 million income from operations in the corresponding quarter of 2022.
- Net loss was $113.4 million, compared to a net loss of $43.5 million and $3.2 million in the previous quarter and the prior year’s period, respectively. The quarterly net loss was mainly driven by one-time, non-cash impairment charges totaling $129 million.
- Adjusted EBITDA (a non-GAAP measure) came in positive at $49 million, compared to $40.5 million and $41.7 million adjusted EBITDA gain in the prior quarter and third quarter of 2022.
- As of Sept. 30, the company had $1.4 billion in total assets, compared to $1.5 billion on Dec. 31, 2022.
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CRLBF Price Action
Cresco’s shares traded 3.125% lower at $1.55 per share after the market close on Tuesday afternoon.
Now read: Cresco Labs Takes On Trulieve As Major Competitor In Florida Where Weed Market Is Poised To Explode
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