Cannabis investors are facing a harsh 2023 as shares of the largest U.S cannabis companies are off between 70% and 90% from their all-time highs in February 2021. They are also now seeing the fundamentals lagging behind once high-flying expectations.
There are many reasons for this deterioration in fundamentals, such as higher-than-expected borrowing rates and general loss of interest in the sector, making it harder for these money incinerators to raise money. At the same time they are also facing mismatched supply and demand issues, partly due to COVID-19 stimulus checks pulling forward demand, as well as due to the the industry spending significantly on large CapEx projects between 2020 and 2022, much of which came online throughout 2022, creating major supply imbalances.
Though we are nearing the end of the earning season for major industries, the cannabis earning season is just getting underway, with the first batch of U.S cannabis companies reporting this week.
Cronos Group (TSX: CRON)
Cronos, the Canadian cannabis company, is reporting its fourth quarter financial results on Tuesday, February 28th, before the market opens.
- Revenue: $22.55m
- Net Income: -$20.52m
- Earnings Per Share: -$0.06
- EBITDA: -$19.00m
- Operating Cash Flow: $1.00m
Innovative Industrial Properties (NYSE: IIPR)
Innovative Industrial Properties, the largest U.S cannabis real estate investment trust, will report its fourth-quarter financial results on Tuesday, February 28th, after the market closes.
- Revenue: $68.78m
- Net Income: $36.29m
- Earnings Per Share: $1.22
- EBITDA: $58.14m
- Operating Cash Flow: $61.07m
Green Thumb Industries (CSE: GTII)
Green Thumb will report its fourth-quarter financial results on Tuesday, February 28th, after the market closes.
- Revenue: $254.84m
- Net Income: $14.05m
- Earnings Per Share: $0.06
- EBITDA: $81.41m
- Operating Cash Flow: $49.29m
- Free Cash Flow: $4.06m
Curaleaf Holdings (CSE: CURA)
Curaleaf will report its fourth-quarter financial results on Wednesday, March 1st, after the market closes.
- Revenue: $354.07m
- Net Income: -$25.58m
- Earnings Per Share: -$0.03
- EBITDA: $85.38m
- Operating Cash Flow: $4.96m
- Free Cash Flow: -$39.69m
Information for this briefing was found via Edgar and Refinitiv. 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.
