2024 Q2 Earnings Reports Roundup

The following is a partial listing of recently released 2024 Q2 earnings reports by cannabis-related publicly traded companies, sorted according to market cap at the time of posting. Highlights of the reports are provided below. Please follow the links for the complete earnings reports and other investor-related material.

Ascend Wellness Holdings (CSE: AAWH.U) (OTCQX: AAWH) (Mkt Cap: $227M)

Highlights:

Gross revenue increased 14.3% year-over-year and decreased 0.9% quarter-over-quarter to $172.7 million. Net revenue, which excludes intercompany sales of wholesale products, increased 15.1% year-over-year and decreased 0.6% quarter-over-quarter to $141.5 million. Retail revenue increased 3.6% year-over-year and decreased 2.2% quarter-over-quarter to $93.1 million. Gross wholesale revenue increased 30.1% year-over-year and 0.8% quarter-over-quarter to $79.6 million. Wholesale revenue, net of intercompany sales, increased 46.2% year-over-year and 2.7% quarter-over-quarter to $48.5 million. Net loss of $21.8 million during the quarter compared to net income of $0.8 million in Q2 2023. Adjusted EBITDA1 was $28.3 million, representing a 20.0% margin. Adjusted EBITDA1 increased 32.9% and Adjusted EBITDA Margin1 improved 269 basis points year-over-year. Adjusted EBITDA1 declined 12.7% quarter-over-quarter and Adjusted EBITDA Margin1 was down 278 basis points sequentially. As of June 30, 2024, cash and cash equivalents were $83.7 million and net debt2 was $225.6 million. Generated approximately $32 million of cash flows from operations, representing the sixth consecutive quarter of positive operating cash flow. Excluding approximately $18 million in state and federal tax refunds, cash flow from operations was approximately $14 million. Generated approximately $27 million of free cash flow3, or $9 million excluding state and federal tax refunds.

Aurora Cannabis (NASDAQ: ACB) (TSX: ACB) (Mkt Cap: $522.5M CAD)

First Quarter 2025 Highlights (Unless otherwise stated, comparisons are between fiscal Q1 2025, Q4 2024, and Q1 2024 results, in Canadian dollars):

Consolidated Revenue and Adjusted Gross Profit:
Total net revenue was $83.4 million, as compared to $74.7 million in the prior year period. The 12% increase from the prior period was due to 13% growth in our global medical cannabis business and 16% growth in our plant propagation business, slightly offset by lower quarterly revenue in our consumer cannabis.

The consolidated adjusted gross margin before fair value adjustments was 43% in Q1 2025 and 44% in the prior year quarter. Adjusted gross profit before FV adjustments1 was $36.0 million in Q1 2025 vs $32.6 million in the prior year quarter, an increase of 10%.

Medical Cannabis:
Medical cannabis net revenue was $47.2 million, a 13% increase from the prior year quarter, delivering 57% of Aurora’s Q1 2025 consolidated net revenue and 91% of adjusted gross profit before fair value adjustments1.

The increase in net revenue1 of $5.6 million was primarily due to higher sales to Australia and a steady increase in sales in Canada to insurance covered patients and larger basket sizes.

Adjusted gross margin before fair value adjustments on medical cannabis net revenue reached 69% for the three months ended June 30, 2024, compared to 61% in the prior year quarter. Our target range is 60% and above. The adjusted gross margins before fair value adjustments improved through sustainable cost reductions, higher selling prices in Australia, and improved efficiency in production operations, including sourcing for Europe from Canada due to the closure of the Aurora Nordic production facility.

Consumer Cannabis:
Aurora’s consumer cannabis net revenue was $11.5 million, a 10% decrease compared to $12.8 million in the prior year quarter. The decrease was due to our decision to prioritize the supply of our GMP manufactured products to our high margin international business rather than the consumer business, which offers lower margins.

Adjusted gross margin before fair value adjustments on consumer cannabis net revenue was 24%, decreasing from 26% compared to the prior year quarter. The decrease from the prior year comparative quarter is largely due to higher margin product sales.

Plant Propagation:
Plant propagation net revenue was wholly comprised of the Bevo business, and contributed $23.1 million of net revenue, a 16% increase compared to $19.9 million in the prior year quarter. The increase was a result of organic growth and increased product offerings. Historically, approximately 65-75% of plant propagation revenue and up to 80% of EBITDA has been earned in the first half of the calendar year.

Adjusted gross margin before fair value adjustments on plant propagation revenue was 18% for Q1 2025 and 22% for the prior year quarter. The fluctuations in the plant propagation adjusted gross margin before fair value adjustments are due to changes in product mix and a prolonged Spring season in the current quarter.

Selling, General and Administrative (“SG&A”):
Adjusted SG&A was $31.4 million in Q1 2025, which excludes $4.9 million of business transformation costs. Adjusted SG&A is likely to remain above our previous target of $30 million due to the incremental SG&A following the acquisition of MedReleaf Australia.

Adjusted R&D was $1.0 million in Q1 2025, which is relatively consistent as compared to the prior year quarter at $1.1 million. Our investment in R&D and product innovation is partly opportunistic, as such these costs will vary quarter over quarter and year over year.

Net Income (Loss):
Net income from continuing operations for the three months ended June 30, 2024, was $4.8 million compared to net loss of $20.2 million for the prior year period.

Adjusted EBITDA:
Adjusted EBITDA increased 87% to $4.9 million for the three months ended June 30, 2024, compared to $2.6 million for the prior year quarter.

AYR Wellness (CSE: AYR.A, OTCQX: AYRWF) (Mkt Cap: $308.34M CAD)

Second Quarter and Recent Highlights:

Launched adult-use sales in Ohio across the first tranche of stores approved by the state, with three affiliated AYR stores included. AYR has the future right to ownership of all three dispensaries, subject to regulatory approval. Entered into option agreement that provides AYR with the future ability to acquire 100% of Good Day Dispensary, LLC (“Good Day”), a fourth Ohio dispensary license. Opened its third retail store in Illinois in June with AYR Cannabis Dispensary Hometown, located near Chicago Midway International Airport, and its fourth Illinois retail store in July with AYR Cannabis Dispensary Normal. Secured real estate financing for indoor cultivation in Florida, with plans to redevelop a 98,000 square foot building within the property to serve as a regulated cannabis cultivation facility. The financing was completed with Innovative Industrial Properties (IIP); IIP committed to funding AYR up to $30 million for the construction. In July 2024, appointed Louis Karger as Chairman of the Board following the resignation of prior Executive Chairman Jonathan Sandelman.

The Cannabist Company (Cboe CA: CBST) (OTCQX: CBSTF) (FSE: 3LP) (Mkt Cap: $132.7M)

Highlights:

The Company ended the second quarter with $22 million in cash. In March, the Company closed a $25.75 million private placement offering of 9% convertible notes due 2027, for which the primary use of proceeds was to settle the remaining $13.2 million of the 13% notes that were settled at maturity in May 2024. In June, the Company implemented a corporate restructuring that entailed both labor and non-labor reductions, which is expected to generate net annual savings of approximately $10 million. In Q2 2024, cash from operations was negative $3 million, compared to negative $6.2 million in Q1. Capital expenditures in the second quarter were $1.7 million; capital expenditures are expected to average $2 to $3 million per quarter over the medium-term, largely for new store openings and manufacturing upgrades. Subsequent to quarter close, Company announced agreements to divest assets and operations in Eastern Virginia and Arizona for total consideration of $105 million.

Canopy Growth (TSX: WEED) (Nasdaq: CGC) (Mkt Cap: $1.05B CAD)

Highlights:

Achieved gross profit of $23MM in Q1 FY2025 representing a 67% increase over the first quarter ended June 30, 2023, despite a decline in consolidated net revenue. Delivered consolidated gross margin of 35%, and Canada cannabis segment gross margin of 32% during Q1 FY2025. Operating loss from continuing operations was $29MM in Q1 FY2025, a 47% improvement over Q1 FY2024. Consolidated Adjusted EBITDA loss narrowed to $5MM in Q1 FY2025, a 77% improvement over Q1 FY2024 driven primarily by cost reduction actions already implemented. Storz & Bickel net revenue increased 2% in Q1 FY2025 over Q1 FY2024, led by over 100% growth in Storz & Bickel sales in Germany, which offset a sales decline in the non-medical vaporizer channel in Australia following a regulatory change. Demonstrated broad-based improvement across key financial metrics in Q1 FY2025 including a 31% reduction in Cost-of-Goods Sold and a 24% reduction in Selling General & Administrative expenses, in each case, over Q1 FY2024. Cash and short-term investments balance of $195MM on June 30, 2024, as compared to $203MM on March 31, 2024.

Chicago Atlantic Real Estate Finance (NASDAQ: REFI) (Mkt Cap: $300M)

Highlights:

Net interest income of approximately $13.2 million, consistent with the first quarter ended March 31, 2024. Interest expenses decreased approximately $0.3 million due to lower weighted average borrowings during the comparative period ending June 30, 2024. Total expenses of approximately $4.3 million before provision for current expected credit losses, representing a sequential increase of 3.6%; primarily attributable to an increase in stock-based compensation expense recognized on additional restricted stock award grants in April 2024. Net Income of approximately $9.2 million, or $0.46 per weighted average diluted common share, representing a sequential decrease of 2.1% on a per share basis. The total reserve for current expected credit losses decreased sequentially by $0.3 million to $5.1 million and amounts to approximately 1.3% of the portfolio principal balance of $383.3 million as of June 30, 2024. Distributable Earnings of approximately $9.8 million, or $0.50 per weighted average diluted common share, representing a sequential decrease of 3.8% on a per share basis. Book value per common share of $14.92 as of June 30, 2024, compared with $14.97 as of March 31, 2024. On a fully-diluted basis, there were 20,057,977 and 19,460,282 common shares outstanding as of June 30, 2024, and March 31, 2024, respectively.

Cresco Labs (CSE: CL) (OTCQX: CRLBF) (FSE: 6CQ) (Mkt Cap: $870M CAD)

Highlights:

Second quarter revenue of $184 million. Gross profit of $95 million. Adjusted gross profit of $97 million up 4% year-over-year; and an Adjusted gross margin of 52% of revenue, a 570 bps improvement. SG&A of $54 million. Reduced Adjusted SG&A by 14% year-over-year to $53 million, or 29% of revenue. Net loss of $51 million which includes a one-time $61 million charge in the quarter related to the Company’s new tax position, as further described below. Second quarter Adjusted EBITDA of $54 million, up 33% year-over-year; and Adjusted EBITDA margin of 29%, an 880 bps improvement. Second quarter operating cash flow of $17 million and Free Cash Flow of $11 million. Retained the No. 1 share position in Illinois, Pennsylvania and Massachusetts.

Cronos Group (NASDAQ: CRON) (TSX: CRON) (Mkt Cap: $1.28B CAD)

Highlights:

Net revenue of $27.8 million in Q2 2024 increased by $8.7 million from Q2 2023. The increase was primarily due to higher cannabis flower and cannabis extract sales in Canada, higher cannabis flower sales in Israel, and sales to other international markets consisting of Germany and the United Kingdom (the “UK”). Gross profit of $6.3 million in Q2 2024 increased by $3.2 million from Q2 2023. The increase was primarily due to higher cannabis flower and extract sales in Canada, higher cannabis flower sales in Israel and sales in other international markets consisting of Germany and the UK. Adjusted EBITDA of $(11.1) million in Q2 2024 improved by $4.9 million from Q2 2023. The improvement year-over-year was driven by an increase in gross profit and decreases in sales and marketing and general and administrative expenses.

Curaleaf Holdings. (Mkt Cap: $2.91B CAD)

Highlights:

Net Revenue of $342.3 million, a year-over-year increase of 2% compared to Q2 2023 revenue of $335.6 million. Sequentially, net revenue increased 1%. Gross profit of $160.5 million and gross margin of 47%. Adjusted gross profit of $163.1 million and adjusted gross margin of 48%, an increase of 253 basis points year-over-year. Net loss attributable to Curaleaf Holdings, Inc. of $48.9 million or net loss per share of $0.06. Adjusted EBITDA of $73.0 million and adjusted EBITDA margin of 21%, a 15-basis point decrease year-over-year. Cash at quarter end totaled $89.4 million. Operating and free cash flow from continuing operations of $30.2 million and $6.0 million, respectively.

Glass House Brands (CBOE CA: GLAS.A.U) (CBOE CA: GLAS.WT.U) (OTCQX: GLASF) (OTCQX: GHBWF) (Mkt Cap: $662M)

Highlights:

Net Revenue of $53.9 million, an increase of 21% from $44.7 million in Q2 2023 and up 79% sequentially from $30.1 million in Q1 2024. Gross Profit was $28.7 million, compared to $24.4 million in Q2 2023 and $12.5 million in Q1 2024. Gross Margin was 53%, compared to 55% in Q2 2023 and 42% in Q1 2024. Adjusted EBITDA1 was $12.4 million, compared to $9.5 million in Q2 2023 and $(1.6) million in Q1 2024. Operating Cash Flow was positive $8.9 million, compared to $8.3 million in Q2 2023 and negative $1.9 million in Q1 2024. Equivalent Dry Pound Production2 was 149,717 pounds, up 45% year-over-year; Cost per Equivalent Dry Pound of Production3 was $148 an increase of 6% compared to the same period last year. Cash, Restricted Cash and Cash Equivalents balance was $25.9 million at quarter-end versus $24.4 million at the end of Q1 2024.

Green Thumb Industries (CSE: GTII) (OTCQX: GTBIF) (Mkt Cap: $3.16B CAD)

Highlights for second quarter and six months ending June 30, 2024:

Second quarter revenue of $280 million increased 11% year-over-year. Cash at quarter end totaled $196 million. Second quarter GAAP net income of $21 million or $0.09 per basic and diluted share. Second quarter Adjusted EBITDA of $94 million or 34% of revenue. Six months cash flow from operations of $104 million, net of $53 million of tax payments. Purchased 1,658,000 Subordinate Voting Shares (“Shares”) for a total of $20 million in the second quarter.

Hydrofarm Holdings Group (Nasdaq: HYFM) (Mkt Cap: $25M)

Q2 Highlights vs. Prior Year Period:

Net sales decreased to $54.8 million compared to $63.1 million. Gross Profit Margin decreased to 19.8% of net sales compared to 23.0%. Adjusted Gross Profit Margin decreased to 24.4% of net sales compared to 27.0%. Net loss increased to $23.5 million compared to $12.9 million. Adjusted EBITDA decreased to $1.7 million compared to $2.5 million. Cash from operating activities and Free Cash Flow were $3.8 million and $3.4 million, respectively. Completed the previously announced IGE Asset Sale in May 2024.

Innovative Industrial Properties (NYSE: IIP) (Mkt Cap: $3.34B)

Highlights:

Generated total revenues of $79.8 million and net income attributable to common stockholders of $41.7 million, or $1.44 per share (all per share amounts in this press release are reported on a diluted basis unless otherwise noted). Recorded adjusted funds from operations (AFFO) and normalized funds from operations (Normalized FFO) of $65.5 million and $58.8 million, respectively. Paid a quarterly dividend of $1.90 per common share on July 15, 2024, to stockholders of record as of June 28, 2024 (an AFFO payout ratio of 83%), representing a 4.4% increase over IIP’s first quarter 2024 dividend and an annualized dividend of $7.60 per common share.

Jushi Holdings (CSE: JUSH) (OTCQX: JUSHF) (Mkt Cap: $176.9M CAD)

Highlights:

Total revenue of $64.6 million Gross profit and gross profit margin of $32.6 million and 50.4%, respectively Net loss of $1.9 million Adjusted EBITDA1 of $14.5 million Adjusted EBITDA1 margin of 22.4% Cash, cash equivalents, and restricted cash of $35.0 million as of quarter end Net cash flows provided by operations of $5.5 million.

NewLake Capital Partners (OCTQX: NLCP) (Mkt Cap: $418.4M)

Highlights:

Revenue totaled $12.5 million. Net income attributable to common stockholders totaled $6.8 million. Funds From Operations (“FFO”)(1) totaled $10.5 million. Adjusted Funds From Operations (“AFFO”)(1) totaled $11.0 million. Cash and cash equivalents as of June 30, 2024, were $20.7 million, with $15.8 million committed to fund building and tenant improvements. Second quarter dividend increased to $0.43 per common share, equivalent to an annualized dividend of $1.72 per common share. In May 2024, the Company purchased a cultivation facility in Connecticut for approximately $4.0 million and committed to fund approximately $12.0 million of improvements. For the three months ended June 30, 2024, the Company funded approximately $3.5 million of building and tenant improvements. In June 2024, the Company entered into an Equity Distribution Agreement (“EDA”) for a $50 million At The Market Program (“ATM Program”).

Planet 13 Holdings (CSE: PLTH) (OTCQX: PLNH) (Mkt Cap: $214M)

Highlights:

Revenue was $31.1 million as compared to $25.8 million, an increase of 20.3%. The increase in sales was driven by a month and a half of revenue from Florida as well as strong sales at the Planet 13 SuperStore and Illinois neighborhood store. Gross profit was $15.8 million or 50.9% as compared to $11.9 million or 46.0%. The improvement in gross margin was driven by a lower cost of cultivation through full utilization of cultivation facilities and better yields, along with a higher portion of sales from owned brands. Total expenses were $19.4 million as compared to $15.4 million, an increase of 26.0%. Absolute expenses grew with the consolidation of Florida. Net loss of $8.1 million as compared to a net loss of $4.6 million. Adjusted EBITDA of $3.2 million as compared to Adjusted EBITDA of $2.8 million. Adjusted EBITDA was higher due to better gross margin performance, strong cost control and increased operating leverage.

SHF Holdings (NASDAQ: SHFS) (Mkt Cap: $34.9)

Highlights:

Net Income increased to approximately $0.9 million, compared to a net loss of approximately $17.6 million in the same period of 2023. Revenue was approximately $4.0 million, compared to approximately $4.6 million for the second quarter of 2023. Operating Expenses decreased to $3.7 million, compared to $22.5 million in the second quarter of 2023. Adjusted EBITDA increased 14.5% to approximately $0.97 million, compared to approximately $850,000 for the second quarter of 2023.

SNDL Inc. (NASDAQ: SNDL) (Mkt Cap: $580M)

Highlights:

Net revenue for the second quarter of 2024 was $228.1 million, compared to $231.9 million in the second quarter of 2023, a decrease of 1.6%. This decrease was driven by market softness in the Liquor Retail segment, while both Cannabis Retail and Cannabis Operations segments posted strong growth. This represents an increase of 15.4% in net revenue quarter on quarter, as compared to net revenue of $197.8 million in the first quarter of 2024, mainly attributed to business seasonality. Achieved a gross profit of $58.2 million, representing a record gross margin of 25.5% of sales in the second quarter of 2024, up from 22.4% in the second quarter of 2023. The 12% improvement in gross profit year over year, or 15.4% improvement quarter on quarter, highlights the continuous success of the Company’s margin improvement initiatives, including the data sales programs, mix optimization and supply chain productivity initiatives. Cash flow was negative $6.0 million in the second quarter of 2024, compared to negative $27.8 million in the second quarter of 2023, a 78% improvement driven by the increase in profitability and smaller working capital build up. Free cash flow in the second quarter of 2024 was negative $5.6 million, compared to negative $18.5 million in the second quarter of 2023, a 70% improvement driven by profitability and working capital management improvements. Operating loss was $4.8 million for the second quarter of 2024, compared to a loss of $29.6 million in the second quarter of 2023, an 84% improvement primarily driven by margin expansion and lower Selling, General, and Administrative expenses. Second quarter results reflect dynamic growth in our Cannabis businesses, confirming the increased profitability we reported in the first quarter of 2024, despite softness in Liquor sales. The following highlights are recent examples of initiatives driving SNDL towards sustained profitable growth: Acquired 4 Dutch Love stores and launched the Value Buds brand in British Columbia by rebranding 3 of these stores. Continued the expansion of proprietary data licensing in both Cannabis and Liquor Retail, increasing data sales from $3.8 million in the first quarter of 2024 to $4.2 million in the second quarter. Increased SNDL’s Liquor Retail segment private label revenue by 17% year-to-date, reaching 11.8% share of revenue. Completed the acquisition of the principal indebtedness of Delta 9 for a purchase price of $28.1 million in early July, becoming its senior secured creditor with a first priority security interest in all assets of Delta 9 and certain of its subsidiaries. Entered into a stalking horse purchase agreement for Indiva Limited’s business and assets. Delivered the first international export contract of 2024, with the shipment of bulk flower to Israel. The Company had $783.6 million of unrestricted cash, marketable securities and investments and no outstanding debt, with $182.9 million of unrestricted cash as of June 30, 2024. SNDL has not raised cash through share offerings since June 2021.

TerrAscend Corp. (TSX: TSND, OTCQX: TSNDF) (Mkt Cap: $802M CAD)

Highlights:

Net Revenue was $77.5 million, compared to $72.1 million, an increase of 7.5% year-over-year. Gross Profit Margin was 48.6%, compared to 50.2% in Q2 2023. GAAP Net loss from continuing operations was $6.2 million, compared to a net loss of $12.9 million in Q2 2023. EBITDA from continuing operations was $18.6 million, compared to $6.5 million in Q2 2023, an increase of 186% year-over-year. Adjusted EBITDA from continuing operations was $15.6 million, compared to $12.8 million in Q2 2023, an increase of 21.9% year-over-year. Adjusted EBITDA Margin from continuing operations was 20.2%, compared to 17.8% in Q2 2023. Net Cash provided by continuing operations was $13.1 million compared to $1.8 million in Q2 2023. Free Cash Flow was $11.7 million compared to negative $0.2 million in Q2 2023.

Tilray Brands (Nasdaq: TLRY; TSX: TLRY) (Mkt Cap: $1.64B)

Highlights:

Net revenue increased 25% to $229.9 million in the fourth quarter compared to $184.2 million in the prior year quarter. Gross profit was $82.4 million in the fourth quarter compared to $67.2 million in the prior year quarter. Gross margin and adjusted gross margin were both 36%. Beverage-alcohol net revenue increased 137% to $76.7 million in the fourth quarter from $32.4 million in the prior year quarter. The increase was led by new product innovation and contributions from our Craft Acquisition brands. Beverage-alcohol gross profit increased 146% to $40.8 million in the fourth quarter from $16.6 million in the prior year quarter. Adjusted beverage-alcohol gross profit increased 130% to $41.0 million from $17.8 million in the prior year quarter. Beverage-alcohol gross margin increased to 53% in the fourth quarter compared to 51% in the prior year quarter and adjusted gross beverage alcohol margin was 53% in the fourth quarter compared to 55% in the prior year quarter. Cannabis net revenue increased 12% to $71.9 million in the fourth quarter compared to $64.4 million in the prior year quarter, driven in part by the acquisitions of HEXO and Truss. Cannabis gross profit and adjusted gross profit decreased to $28.8 million in the fourth quarter from $39.5 million in the prior year quarter. Cannabis gross margin and adjusted gross margin were 40% in the fourth quarter compared to 61% in the prior year quarter. A substantial portion of the decrease is a result of the completion of the HEXO advisory services agreement in Q1 fiscal 2024. Distribution net revenue was $65.6 million in the fourth quarter compared to $72.6 million in the prior year quarter. The decrease was driven by management’s focus on discontinuing less profitable product lines demonstrated by Distribution’s gross margin increasing to 12% in the fourth quarter compared to 9% in the prior year quarter. Wellness net revenue increased 6% to $15.7 million in the fourth quarter from $14.8 million in the prior year quarter. Net loss narrowed to ($15.4) million in the fourth quarter compared to net loss of ($119.8) million in the prior year quarter, almost all of which is a result of non-cash expenses. Adjusted net income was $35.1 million in the fourth quarter compared to a loss of ($11.8) million in the prior year quarter. Net loss per share narrowed to ($0.04) compared to ($0.15) in the prior year quarter. Adjusted net income (loss) per share was $0.04 compared to a loss of ($0.02) in the prior year quarter. Adjusted EBITDA increased 37% to $29.5 million in the fourth quarter compared to $21.5 million in the prior year quarter.

Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) (Mkt Cap: $2.57B)

Highlights:

Revenue of $303 million increased 2% sequentially and 8% year over year, with 95% of revenue from retail sales. Strong second quarter sales were driven by higher retail traffic and increased wholesale revenue. Achieved gross margin of 60%, with GAAP gross profit of $182 million. Reported net loss of $12 million, an improvement of 48% sequentially. Adjusted net income of $0.2 million* excludes non-recurring charges, asset impairments, disposals and discontinued operations. Achieved EBITDA of $88 million*, or 29% of revenue and adjusted EBITDA of $107 million*, or 35% of revenue, up 1% sequentially and 36% year over year. Generated cash flow from operations of $71 million and free cash flow of $45 million*. Cash at quarter end was $356 million, inclusive of an additional $2.0 million in tax refunds received during the second quarter, from amended returns, related to our tax challenge of 280E. Opened three new dispensaries in Brooksville, North Palm Beach, and Stuart, Florida. Acquired two dispensaries in Beavercreek and Columbus, Ohio. Ended the quarter with 32% of retail locations outside of the state of Florida.

Verano Holdings Corp. (Cboe CA: VRNO) (OTCQX: VRNOF) (Mkt Cap: $1.58B)

Highlights:

Revenues, net of discounts, of $222 million, an increase of 0.5% versus the prior quarter, meeting Company guidance, and a decrease of 5% year-over-year. Gross profit of $114 million or 51% of revenue. SG&A expense of $87 million or 39% of revenue. Net loss of $(22) million or (10)% of revenue. Adjusted EBITDA1 of $71 million or 32% of revenue. Net cash provided by operating activities of $8 million. Capital expenditures of $19 million.

Village Farms International (NASDAQ: VFF) (Mkt Cap: $113M)

Highlights:

Consolidated

Consolidated sales increased 19% year-over-year to $92.1 million from $77.2 million; Consolidated net loss was ($23.5 million), or ($0.21) per share, compared with ($1.4 million), or ($0.01) per share; Excluding the ($11.9 million) goodwill and intangible asset impairment related to U.S. Cannabis, adjusted net loss was ($11.6 million); Consolidated adjusted EBITDA (a non-GAAP measure) was ($3.6 million) from $4.5 million; and, Consolidated cash flow from operations improved to $5.7 million from cash used in operations of $1.6 million.

Canadian Cannabis (Pure Sunfarms and Rose LifeScience)

Net sales increased 45% to $40.7 million (C$55.8 million) from $28.1 million (C$37.7 million); Retail branded sales increased 38%, international (export) sales increased 11%, non-branded (wholesale) sales increased 190% (in Canadian dollars); Gross margin was 26% compared with 38%; (in Canadian dollars). This quarter’s gross margin was reduced by sales of non-brand-spec inventory in the non-branded channel: Net income increased to $1.4 million (C$1.9 million) from $1.2 million (C$1.7 million); Adjusted EBITDA was $4.8 million (C$6.6 million) compared with $4.8 million (C$6.7 million); and, Cash flow from operations increased 38% to $5.4 million (C$7.2 million) from $3.1 million (C$5.2 million).

U.S. Cannabis (Balanced Health Botanicals)

Net sales were $4.3 million compared with $5.3 million; Gross margin was 61% compared with 67%; Net loss was ($12.3 million) compared with a net income of $0.2 million; Excluding the ($11.9 million) impairment of goodwill and intangible assets, adjusted net loss was ($0.4 million); and, Adjusted EBITDA was ($0.2 million) compared with $0.4 million.

Village Farms Fresh (Produce)

Sales increased 7% to $47.1 million from $43.8 million; Net loss was ($8.3 million) compared with a net loss of ($0.7 million); Adjusted EBITDA was ($6.4 million) compared with $1.3 million, with last year’s quarter benefitting from a favorable legal settlement of $5.6 million; and, Year-to-date, gross loss improved to ($854) from ($2,146), benefiting from cost management and efficiency initiatives.

WM Technology (Nasdaq: MAPS) (Mkt Cap: $158M)

Highlights:

Net revenues for the second quarter ended June 30, 2024, were $45.9 million as compared to $48.4 million in the second quarter of 2023, representing a decline of 5% compared to the prior year period due to our clients continuing to face constrained marketing budgets, the ongoing price deflation in and consolidation of our industry, and the impact on revenue related to the sunset of certain products in the fourth quarter of 2023. Average monthly paying clients of 5,045, was down from 5,609 from the prior year period, largely due to the removal of paying clients from our platform who have become delinquent, the impact on client count related to the sunset of the aforementioned products, as well as expected client churn due to continued industry challenges, such as price deflation and ongoing consolidation. Average monthly net revenues per paying client increased to $3,033 from $2,878 in the prior year period, due to churn of lower paying clients, including the clients using the aforementioned sunset products, which typically had a lower average selling price. Net income was $1.2 million as compared to $2.0 million in the prior year period. Adjusted EBITDA decreased to $10.1 million from $10.2 million from the prior year period. Total shares outstanding across Class A and Class V Common Stock were 152.4 million as of June 30, 2024. Cash increased to $41.3 million as of June 30, 2024, as compared to $34.4 million as of December 31, 2023.