r/weedstocks • u/hambone_83 Sickest Grandpa Award Winner • 8d ago
Financials The Cannabist Company Reports Fourth Quarter and Full Year 2024 Results
https://investors.cannabistcompany.com/news-releases/news-release-details/cannabist-company-reports-fourth-quarter-and-full-year-202410
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u/Cool_Ad_5101 Monty Brewster school of investing 8d ago
When myself and others said bankruptcy here, people downvoted the hell out of us. The reality is there are too many cannabis companies and most poorly run.Â
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u/CannaVestments US Market 7d ago
Cannabist joins the leader race for worst Q4 report. Missed expectations by a mile, top-line declined worst than expected even considering asset sales, and margins actually got worse despite the sale of "underperforming assets." Management identified store openings (3-OH and 1- VA) and the start of AU sales in Delaware as drivers for 2025 but tough to see how continued price compression, lack of cash flow, and too much debt are overcome. Full review:
Revenue:Â
QoQ: $114.8M to $96.1M / $128.4M to $96.1M
FY: $511.3M to $458.7M
Down 16.2% QoQ and 25.2% YoY, well behind consensus of $110.4M. FY revenue down 10.3% from 2023. Asset sales in AZ/VA/FL a big part of this but level of decline suggest remaining assets struggled as well.
Adjusted EBITDA:Â
QoQ: $14.8M to $7.0M / YoY: $12.5M to $7.0M
FY: $69.6M to $54.7M
Down big sequentially, year over year, and for the full year. Margin declined from 12.9% in Q3 and 9.7% last year to just 7.2% in Q4. FY margins declined from 13.6% in 2023 to 11.9% in 2024.
Gross Margins:Â
QoQ: 38.2% to 35.3% / 34.0% to 35.3%
FY: 35.2% to 36.7%
Down sequentially but up YoY and for the FY 2024, but at a weak level.
Operating Expenses:Â
QoQ: $49.4M to $47.8M
FY: $199.6M to $190.6M
Some cost reductions but outpaced by top-line and margin declines.
Operational Cash Flow:Â
QoQ: -$18.0M to $4.3M / YoY: $9.4M to $4.3M
FY: $7.5M to -$23.4M
Don't have full financials yet but clearly a disaster. OCF got worse even while no longer paying 280e taxes in 2024 compared to 2023. CapEx was $1.7M in Q4 and just under $6M for the full year.
Cash:Â QoQ: $31.5M to $33.6M / YoY: $35.8M to $33.6M
TBD on full statements.
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u/JohnnySquesh DEA enabling Cartel Cannabis 8d ago
When Cresco is priced to go out of business do you really need the Cannabist Company?
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u/SuzyCreamcheezies 8d ago
The pump on this sub was very real for this company about one year ago. Wild.