Flora Growth (FLGC) AI Stock Analysis

• Market Cap: $6.59M
• Dividend Yield: N/A
• Average Volume (3M): 79.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.62
• Revenue Growth: -22.60%
• EPS Growth: 53.82%
• Country: US
• Employees: 64
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -4.93
• Shares Outstanding: 1,045,604
• 10 Day Avg. Volume: 25,949
• 30 Day Avg. Volume: 79,922
• PEG Ratio: 0.38
• Price to Book (P/B): 109.26
• Price to Sales (P/S): 8.28
• P/FCF Ratio: -95.39
• Enterprise Value/Market Cap: -1.51
• Enterprise Value/Revenue: -0.20
• Enterprise Value/Gross Profit: -1.14
• Enterprise Value/Ebitda: 0.85
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: $6.00 ▼(-15.01% Downside)

The score is held down primarily by weak financial performance (ongoing losses, declining revenue, and negative free cash flow) and bearish technicals (price below key moving averages with negative MACD). Valuation is difficult to assess due to negative earnings and no dividend support. Offsetting factors include constructive corporate events that improve governance and provide financing flexibility.

Positive Factors

Strengthened governance

Installing an independent audit committee chair materially improves board oversight and financial controls. Over the medium term this reduces regulatory and reporting risk, supports higher quality disclosures, and can increase investor confidence when accessing capital or negotiating partnerships.

Committed funding availability

A committed share purchase facility provides predictable access to capital over a multi-quarter horizon, helping fund operations and restructure as needed. This funding flexibility reduces immediate liquidity pressure and supports execution of strategic initiatives without urgent asset sales.

Low reported financial leverage

Very low reported debt limits near-term solvency and interest-service risk, giving management flexibility to raise capital or invest in growth without heavy fixed-charge burdens. For a cash-burning growth company, low leverage improves optionality and reduces bankruptcy tail risk.

Negative Factors

Persistent negative free cash flow

Sustained negative operating and free cash flow forces recurring external financing to sustain operations. Over months this undermines strategic independence, constrains investment in commercialization or scale-up, and increases the likelihood of dilutive capital raises that impair long-term shareholder value.

Declining revenue and shrinking margins

A falling top line combined with compressing gross margins erodes operating leverage and lengthens the path to break-even. Structural demand, pricing pressure, or rising unit costs could persist absent reengineering of the commercial model, making sustained profitability uncertain over the medium term.

Expanded share issuance capacity raises dilution risk

Broad authorization to issue shares and create preferred stock materially increases the company's ability to raise equity to cover cash deficits. Given ongoing losses and cash burn, this structural capacity heightens dilution risk, can weaken per-share economics, and may realign incentives toward financing over profitability.

Flora Growth Business Overview & Revenue Model

Company Description

Flora Growth Corp., together with its subsidiaries, engages in the growth, cultivation, and development of medicinal cannabis and medicinal cannabis derivative products to pharmacies, medical clinics, and cosmetic companies worldwide. It cultivates, processes, and supplies medicinal-grade cannabis oil, and cannabis derived medical and wellness products; offers skincare and beauty products; develops plant-based and medical-grade pharmaceuticals, phytotherapeutics, and dietary supplements; and designs and markets loungewear made from hemp-derived fabric and materials. The company also manufactures, distributes, and retails cannabidiol (CBD) derived products, such as gummies, topicals, tinctures, and vape products; lifestyle wellness products, including edibles, bath and body, pets, sports recovery, etc.; provides cannabis consumption accessories, personal storage, and travel accessories for vape and dry herb categories; and offers juices, exotic fruits coated with chocolate, and chocolate bars, as well as dried fruits, beans, and pulp from Amazonian fruits in supermarkets, discount retailers, coffee shops, restaurants, and airports. In addition, it engages in the manufacturing, promotion, and distribution of beverage products; manufacture and sale of product formulations for pain relief; and development of pharmaceutical cannabinoid formula for the prevention of Sars-Cov-2. The company sells its products under the JustCBD, Vessel, Mind Naturals, Mambe, Stardog, Tonino Lamborghini, and Kalaya brands. Flora Growth Corp. was incorporated in 2019 and is headquartered in Toronto, Canada.

How the Company Makes Money

Flora Growth generates revenue primarily through the sale of its cannabis and hemp-derived products. The company has multiple revenue streams, including wholesale distribution to retailers, direct-to-consumer sales through e-commerce platforms, and partnerships with other brands for co-branded product lines. Additionally, Flora Growth benefits from its cultivation operations, which enable cost-effective production of high-quality cannabis. Strategic partnerships with established brands and retailers further enhance its market reach and contribute to its earnings. The company also explores opportunities in the international market, which may provide additional revenue avenues.

Flora Growth Financial Statement Overview

Summary

Flora Growth is facing significant financial challenges, with declining revenue and persistent losses impacting its ability to generate positive earnings. The balance sheet reflects increased leverage and reduced equity, highlighting financial instability. While there is some improvement in free cash flow, the overall financial position is weak, requiring strategic changes to improve profitability and reduce financial risk in a highly competitive industry.

Income Statement

Flora Growth's income statement shows a significant decline in revenue from $76.07 million in 2023 to $59.51 million in 2024, indicating a negative revenue growth rate of -21.75%. Additionally, the company has been consistently operating at a loss with a negative net profit margin, as net income remains negative across the years, reaching -$15.91 million in 2024. Gross profit margin has also declined from 23.32% in 2023 to 21.00% in 2024, reflecting reduced operational efficiency. These factors point to struggles in maintaining profitability and revenue growth.

Balance Sheet

The balance sheet of Flora Growth highlights a challenging financial position, with a debt-to-equity ratio that has risen to 1.09 in 2024, reflecting increased leverage. Stockholders' equity has decreased significantly, from $6.40 million in 2023 to $4.51 million in 2024. The equity ratio has also declined to 17.20% in 2024, suggesting a lower proportion of equity financing. The company faces potential risks due to its high leverage and declining equity position.

Cash Flow

Cash flow analysis for Flora Growth reveals some improvement in free cash flow, which, while still negative at -$5.17 million in 2024, has improved from -$8.56 million in 2023. However, operating cash flow remains negative, indicating continuous cash outflows from core operations. The operating cash flow to net income ratio remains unfavorable, given the negative net income. Despite the improvement in free cash flow, the company faces challenges in generating positive cash flow from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	49.66M	59.51M	76.07M	33.40M	8.98M	106.00K
Gross Profit	8.69M	12.50M	17.74M	13.25M	2.42M	71.00K
EBITDA	-11.73M	-15.10M	-45.87M	-17.87M	-20.93M	-14.19M
Net Income	-15.96M	-15.91M	-57.04M	-52.41M	-21.25M	-14.17M
Balance Sheet
Total Assets	74.02M	26.23M	23.63M	80.99M	85.48M	19.45M
Cash, Cash Equivalents and Short-Term Investments	13.10M	6.02M	4.35M	8.94M	37.61M	15.52M
Total Debt	3.18M	4.90M	3.67M	3.76M	1.34M	649.00K
Total Liabilities	9.10M	21.72M	17.22M	24.57M	8.54M	3.20M
Stockholders Equity	64.92M	4.51M	6.40M	56.82M	77.17M	16.36M
Cash Flow
Free Cash Flow	-7.27M	-5.17M	-8.56M	-17.23M	-24.63M	-8.65M
Operating Cash Flow	-6.75M	-5.03M	-8.40M	-15.94M	-20.65M	-8.42M
Investing Cash Flow	-636.00K	203.00K	-234.00K	-15.80M	-14.55M	-2.16M
Financing Cash Flow	15.48M	6.49M	3.15M	4.41M	58.11M	25.82M

Flora Growth Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLGC, the sentiment is Negative. The current price of 7.06 is above the 20-day moving average (MA) of 7.04, below the 50-day MA of 7.94, and below the 200-day MA of 18.76, indicating a bearish trend. The MACD of -0.59 indicates Negative momentum. The RSI at 39.03 is Neutral, neither overbought nor oversold. The STOCH value of 14.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FLGC.

Flora Growth Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
YCBD	47 Neutral	$10.77M	-0.26	-44.42%	―	-1.50%	80.17%
IXHL	47 Neutral	$134.58M	-0.35	-114.52%	―	-86.05%	24.17%
FLGC	43 Neutral	$6.59M	-0.20	-37.38%	―	-22.60%	53.82%
IMCC	40 Underperform	$7.45M	-1.72	-93.87%	―	-0.74%	81.49%
COSM	40 Underperform	$16.69M	-0.76	-63.82%	―	―	―

Flora Growth Corporate Events

Flora Growth Strengthens Board With New Independent Director

On January 6, 2026, Flora Growth Corp.’s board appointed Larry Zeifman as a director and chair of the audit committee, as well as a member of the audit, compensation, and nominating and corporate governance committees, while naming Manfred Leventhal as chair of the nominating committee. Zeifman, deemed an independent director under Nasdaq and SEC standards and free of related-party or compensatory arrangements tied to his appointment, fills the board and committee vacancies created by the death of director Harold Wolkin on August 25, 2025, reinforcing Flora Growth’s governance structure and regulatory compliance credentials for investors and other stakeholders.

The most recent analyst rating on (FLGC) stock is a Hold with a $6.50 price target. To see the full list of analyst forecasts on Flora Growth stock, see the FLGC Stock Forecast page.

Flora Growth Settles Convertible Note with DeFi Development

On December 29, 2025, Flora Growth Corp. entered into a note settlement agreement with DeFi Development Corp. to fully satisfy a Solana-denominated convertible note originally issued under a September 19, 2025 securities purchase agreement. Under the settlement, Flora agreed to pay 96.161907647528 Solana, US$1.75 million in cash and issue 111,550 common shares valued at US$6.90 per share by January 6, 2026, after which the note’s principal and interest would be deemed paid in full, all obligations under the note extinguished, and both parties mutually released from any related claims, with the settlement shares issued under an exemption from U.S. securities registration requirements.

The most recent analyst rating on (FLGC) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Flora Growth stock, see the FLGC Stock Forecast page.

Flora Growth Finalizes Separation with Former Chief Executive

On December 19, 2025, Flora Growth Corp., an Ontario‑organized company, executed a Separation Agreement with former chief executive and current consultant Clifford Starke, formally ending his employment with the company on that date. Starke had previously resigned as CEO and director on September 20, 2025, without any stated disagreement over the company’s operations, policies or practices, and had continued as a strategic advisor to the CEO. Under the agreement, Flora Growth and Starke mutually settled any existing or potential claims through the execution date, and Starke became entitled to termination benefits including a cash payment of $895,000 and 13,000 restricted share awards, while foregoing any further equity grants for 2025 performance, clarifying the financial and governance terms of his departure for stakeholders.

The most recent analyst rating on (FLGC) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Flora Growth stock, see the FLGC Stock Forecast page.

Flora Growth shareholders approve major governance and capital changes

At a special meeting of shareholders held on December 19, 2025, Flora Growth Corp. secured approval for a broad package of governance and capital-structure measures, including an amendment to its 2022 Incentive Compensation Plan that sharply increases the pool of common shares and incentive stock options available for issuance, and subsequent stock option grants to its CEO, CFO and Executive Chairman in line with their employment agreements. Shareholders also authorized the board to change the company’s name to ZeroStack Corp., create a new class of preferred shares with defined rights, approve various issuances of common shares underlying pre-funded warrants, warrants and convertible notes tied to September 2025 private placements, and give the board discretion to implement a forward share split of between 2:1 and 10:1 within a year, collectively enhancing the company’s flexibility to raise capital, adjust its share structure and align executive incentives while potentially diluting existing holders.

The most recent analyst rating on (FLGC) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Flora Growth stock, see the FLGC Stock Forecast page.

Flora Growth Secures $25M Investment Agreement with White Lion

On November 28, 2025, Flora Growth Corp. entered into a Share Purchase Agreement and a Registration Rights Agreement with White Lion Capital, LLC, allowing the investor to purchase up to $25 million of the company’s common shares, with the potential to increase this to $50 million. This agreement provides Flora Growth with the flexibility to direct share purchases over a 24-month period, contingent on market conditions and other factors, which could significantly impact the company’s financial strategy and stakeholder interests.

The most recent analyst rating on (FLGC) stock is a Hold with a $7.50 price target. To see the full list of analyst forecasts on Flora Growth stock, see the FLGC Stock Forecast page.