Cannabist Company Holdings Inc ( (CBSTF) ) has released its Q3 earnings. Here is a breakdown of the information Cannabist Company Holdings Inc presented to its investors.
The Cannabist Company Holdings Inc., a prominent player in the U.S. cannabis industry, is engaged in the cultivation, manufacturing, and retailing of cannabis products across multiple states, with a robust presence in both medical and adult-use markets.
In its third-quarter 2024 earnings report, The Cannabist Company revealed significant financial and operational changes, highlighting asset sales and strategic market exits as part of its ongoing business transformation. Despite a decline in revenue and adjusted EBITDA, the company reported a notable improvement in net income compared to the previous quarters.
The Cannabist Company reported third-quarter revenue at $114.8 million, an 8% decrease from the second quarter, primarily due to the sale of assets in Eastern Virginia and Arizona. However, the company strengthened its balance sheet with $31 million in net cash proceeds from these sales and increased its cash position to $31.5 million by the quarter’s end. The company also saw an increase in wholesale revenue, contributing 17% to the total revenue for the quarter.
Looking forward, The Cannabist Company aims to enhance profitability with an adjusted EBITDA margin target above 20% by 2025. Management’s strategic focus includes optimizing operations, reducing corporate overhead, and expanding in promising markets such as New Jersey, Virginia, and Ohio, where adult-use sales are expected to boost performance.
