Trulieve Sees Q3 Revenues Fall Slightly To $275 Million, Cash Flow Improves
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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
