Growth appears to be slowing for Trulieve Cannabis (CSE: TRUL), whom this morning reported its second quarter financial results. The company saw its topline revenue stay nearly flat, with results driven by retail sales while wholesale, licensing and other revenue fell significantly.
Revenue for the quarter came in at $320.3 million, an improvement of only 0.6% over that of the first quarters $318.3 million in revenue. Retail revenue is said to have accounted for $298.6 million of that revenue figure, a 2.7% improvement on a sequential basis, while wholesale, licensing and other amounted to $21.7 million, a 21.7% decline.
Gross profit meanwhile came in at $182.2 million, resulting in gross margins of 57%. This was offset by expenses of $144.2 million, lead by sales and marketing at $75.3 million. Overall, the company posted income from operations of $38.0 million.
After other expenses of $17.2 million, and provisions for income taxes of $44.8 million, Trulieve posted a net loss of $22.5 million for the quarter, or $0.12 per share. Adjusted EBITDA meanwhile came in at $111.0 million.
The firms cash position meanwhile declined from $267.0 million to $181.4 million over the course of the quarter.
Finally, the company lowered its guidance for the full fiscal year, which it blames on “the impact of inflation on consumer spending,” along with strategic changes and the “lack of visibility in the current macroeconomic environment.” The company dropped its revenue guidance from a range of $1.3 billion to $1.4 billion to that of $1.25 billion to $1.3 billion. Guidance for adjusted EBITDA was also lowered, going from $450 to $500 million to that of $415 to $450 million.
Trulieve Cannabis last traded at $17.20 on the CSE.
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