Trulieve Cannabis (CSE: TRUL) reported a mixed bag of results this morning for its third quarter. The company saw its revenue decline a slight 2% from the second quarter to $275 million, while substantially narrowing its net loss.
Gross profit for the quarter amounted to $143 million, improving gross margins by two percentage points over the second quarter to 52%. Operating expenses meanwhile tumbled 72% from the last quarter, falling from $433 million to $120 million, which is skewed due to $311 million in impairments last quarter.
Net loss as a result fell from $404 million to just $25 million on a quarter over quarter basis. Adjusted EBITDA meanwhile was down just 1%, from $79 million to $78 million.
The highlight this quarter for Trulieve was its cash flow, with the company claiming cash flow generated from operations of $93 million, and free cash flow of $87 million – compared to cash flow from operations of just $98 million in the first half of the year. Its cash and cash equivalents as a result climbed from $152.4 million to $192.2 million over the course of the quarter, which is after repurchasing $57 million in face value senior secured 2026 notes for a figure of US$47.6 million.
In terms of outlook, Trulieve expects 2023 operating cash flow of at least $100 million and free cash flow of $70 million.
Trulieve Cannabis last traded at $6.75 on the CSE.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
