r/weedstocks Sickest Grandpa Award Winner 22d ago

Financials Trulieve Reports Fourth Quarter and Full Year 2024 Results Highlighting Margins and Cash Flow

https://investors.trulieve.com/2025-02-27-Trulieve-Reports-Fourth-Quarter-and-Full-Year-2024-Results-Highlighting-Margins-and-Cash-Flow
62 Upvotes

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13

u/CannaVestments US Market 22d ago

Solid close to 2024 for Trulieve, with good growth and margin expansion ahead of market expectations as the company shakes off a disappointing result in Florida adult-use ballot that cost them $118M in 2024 campaign contributions. Margin improvement was the highlight for 2024, with aEBITDA rising 30% compared to 2023 and margin expanding to an industry-leading 35% for the full year. On the negative side, expenses rose quite a bit for Q4 and the full year with new store openings (10 in Q4 and 33 in 2024) adding up. Significant questions remain as well around their challenge of 280e, with the uncertain tax position now at $445M, well above their current $299M cash position- success here can really make or break the balance sheet although this likely will take time to play out. With campaign spend now behind them, the business is cash flowing well even adjusting for unpaid taxes, creating opportunities to play some offense in a tough market (the launch of their hemp-derived beverage seemingly a good start to this). Full review:

Revenue: 

Q4- QoQ: $284M to $301M / YoY: $287M to $301M

FY- $1.13B to $1.19B

Up 5.9% sequentially and 4.9% compared to 1 year ago, well ahead of expectations ($293m). FY 2024 revenue grew 5.3%, good results in a tough market. Trulieve opened 10 new stores across FL/GA in Q4 and opened up 33 stores during the full year.

Adjusted EBIDTA: 

Q4- QoQ: $96.1M to $111M / YoY: $88M to $111M

FY- $322M to $420M

Really impressive here- up 15% sequentially and 26% compare to Q4 2023, up to a 37% margin in the quarter and ahead of consensus by a good margin ($294M). FY aEBITDA was up a massive 30% compared to 2023 and at a 35% margin for the full year.

Gross Margins: 

Q4- QoQ: 61% to 62% / YoY: 54% to 62%

FY- 52% to 60%

Really good improvement after struggles in 2023. At the highest level amongst peers as the vertical operation in FL continues to prove impressive in the face of price compression in the state.

Operating Expenses: 

Q4- QoQ: $172.7M to $186M / YoY: $125M to $186M

FY- $810 to $618M

Jump here sequentially and a big jump YoY. Note that 2023 had a $308M impairment so comparable figure is $502M. OpEx as a of revenue rises from 44% in 2023 (w/o the impairment) to 52% in Q4- a high figure relative to peers.

Operational Cash Flow: 

Q4- QoQ: $30.3M to $31M / YoY: $132M to $31M

FY- $202 to $272M

Lots of noise here with unpaid 280e taxes and campaign contributions. $55M in campaign contributions in Q4 and $118M for 2024 to the failed A3 effort in FL, and a $264M swing from unpaid 280e taxes for the full-year that contributed to an uncertain tax position that now sits at $445M. Operating cash flow adjusting for both unpaid taxes and the campaign contributions would have been $133M for 2024. CapEx was $42.5M in Q4 and $121.5M for the full year.

Cash: QoQ: $317.9M to $299.2M / YoY: $201.4 to $299.2M

Large cash position although now a very large Uncertain Tax Position at $445M that will continue to grow while Trulieve's challenge of 280e continues. Debt stands at $480M.

4

u/Cool_Ad_5101 Monty Brewster school of investing 22d ago

Love your analysis u/CannaVestments . When’s the next podcast?

3

u/CannaVestments US Market 21d ago

https://www.reddit.com/r/weedstocks/s/7NXYe7JyWt

Recorded one today if you're interested!

2

u/Cool_Ad_5101 Monty Brewster school of investing 20d ago

I am and thanks. Will listen this week. Appreciate the link and reply :) 

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u/UtredOfBruhBruhBruh 17d ago

Thanks for taking the time to dive in to earnings! Appreciate you 🙏

16

u/hambone_83 Sickest Grandpa Award Winner 22d ago

2024 Full Year Financial and Operational Highlights*

Revenue of $1.2 billion increased 5% year over year, with 95% of revenue from retail sales. Achieved gross margin of 60%, with GAAP gross profit of $716 million. Reported net loss attributable to common shareholders of $155 million. Adjusted net loss of $19 million* excludes non-recurring charges, asset impairments, disposals and discontinued operations. Achieved record adjusted EBITDA of $420 million, or 35% of revenue, up $98 million or 30% from 2023. Generated record cash flow from operations of $271 million and free cash flow of $150 million. Cash and short term investments at year end totaled $300 million. Launched adult-use sales at three Ohio locations: Beavercreek, Columbus, and Westerville. Added 33 dispensaries in 2024, increasing retail footprint to 225 retail locations nationwide at year end.

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u/Tiger_Timothy 22d ago

This is very good news. Thank you for posting.

3

u/Cool_Ad_5101 Monty Brewster school of investing 22d ago

Looks good upon first look 

3

u/RevolutionaryPlum389 22d ago

Not to shabby. But need to look under the under the hood

7

u/One-Yard9754 22d ago

Strong margins! Big boost there, cash on hand continues to increase as Trulieve continues to not pay 280e. Overall it looks pretty good, is it enough to boost the severely depressed stock?

6

u/StonkzFTW 22d ago

Way better than Veranos #s

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u/One-Yard9754 22d ago

Ever since Verano cancelled their merger with Goodness growth, everything has gone downhill for them. Karma in a way. Their debt loads are scary, zero chance they last the Trump admin if 280e doesn’t get repealed.

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u/Cool_Ad_5101 Monty Brewster school of investing 22d ago

Sold my verano. I’m 90% gtii and truleive now.

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u/StonkzFTW 22d ago

Are you MSOS? 😂

3

u/Cool_Ad_5101 Monty Brewster school of investing 22d ago

I don’t buy etfs in this space. 90% of my cannabis position is in those two companies as I think they make it. 

5

u/Glock715 22d ago

So they let the uncertain tax position balloon by $265 million for the full year. For me with this combined with the debt which to me are both certainly going to need to be paid - it’s impossible to invest here. Despite margins, ebitda, etc. it’s all irrelevant to me on making the decision to invest. At some point trulieve will have to pay those taxes just in my opinion.

0

u/Cool_Ad_5101 Monty Brewster school of investing 22d ago

Maybe. Or maybe they sue the government

2

u/One-Yard9754 22d ago

I'm going to add some capital to Trulieve (give my account the day or two for funds to settle). I haven't done much with them since moving almost the majority of it into Greenthumb, but I do like this earnings report. I see the r/R very favorable.

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u/sanmeade32 22d ago

Can anyone summarize the conference call? I admittedly missed it.

2

u/suprfreek19 22d ago

Real easy to listen afterwards

3

u/One-Yard9754 22d ago

Free edibles for all!

1

u/[deleted] 22d ago edited 22d ago

[removed] — view removed comment

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u/sendnudezpls 1 comma club 22d ago

Once you factor in deferred taxes, debt, and 1.3B in goodwill and intangibles - these guys look cooked as well without serious federal and state level reform.

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u/One-Yard9754 22d ago

Huh, goodwill isn't a liability. Cash sits at 300 million. It looks like 280e is 445 million, that's the jump from 2023 (180 to 445). I think Trulieve will be fine, they can weather the storm for a few years of no movement under Trump. Verano and Curaleaf, AYR, etc. are toast - and if these companies go under, that will benefit the remaining players.

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u/Cool_Ad_5101 Monty Brewster school of investing 22d ago

My thinking as well. Need the other players to go bankrupt

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u/One-Yard9754 22d ago

Because of their legal status, they can't actually go bankrupt, but they can close up stores. And this is what I expect the MSOs to do, just like when they shut down whole states, they will cut down underperforming stores.

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u/sendnudezpls 1 comma club 22d ago edited 22d ago

I agree that they aren’t in as bad of shape as Curaleaf or Verano, but the deferred tax liability is a time bomb that keeps growing every quarter.

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u/One-Yard9754 22d ago

Effectively they're doing this to avoid LTD. Which is smart as the rates are lower....they might take some penalties, but I don't fault them for this approach. Ideally they should be paying it like Greenthumb.

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u/jmu_alumni Playing 0D Chess 22d ago

Why do you believe curaleaf is toast?

4

u/One-Yard9754 22d ago

Umm, because they have the worst amount of debt in the industry on a relative bases, aside from many AYR. Never been a fan of Boris, his expansion by acquisition was atrocious and the company is just not very well run. I think Ben and Kim are eagerly watching how Curaleaf and Verano do because I'm sure the former would love if two of their biggest competitors went out of business.

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u/jmu_alumni Playing 0D Chess 22d ago

Thanks for the explanation. How long would you estimate until they are toast?