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Flora Growth (FLGC)
NASDAQ:FLGC
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Flora Growth (FLGC) AI Stock Analysis

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FLGC

Flora Growth

(NASDAQ:FLGC)

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Underperform 38 (OpenAI - 4o)
Rating:38Underperform
Price Target:
$9.50
▼(-8.21% Downside)
Flora Growth's overall stock score is heavily impacted by its weak financial performance, characterized by declining revenue, persistent losses, and increased leverage. The technical analysis further supports a bearish outlook, with the stock trading well below key moving averages and indicators suggesting oversold conditions. Valuation metrics reflect significant financial distress, with a negative P/E ratio and no dividend yield, making the stock unattractive to investors seeking growth or income.

Flora Growth (FLGC) vs. SPDR S&P 500 ETF (SPY)

Flora Growth Business Overview & Revenue Model

Company DescriptionFlora 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 MoneyFlora 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 Earnings Call Summary

Earnings Call Date:Aug 01, 2025
(Q3-2024)
|
% Change Since: |
Next Earnings Date:Dec 01, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant strategic expansions and leadership changes that position Flora Growth for future growth in both the U.S. and European markets. However, the company faced challenges with declining revenue and increased operating expenses. Despite these challenges, the substantial reduction in net loss and strong performance of key brands suggest a cautiously optimistic outlook.
Q3-2024 Updates
Positive Updates
Strategic Expansion in the U.S. and Germany
Flora Growth is leveraging its brands, JustCBD and Vessel, to capture market share in the U.S. with a focus on the growing infused beverage market. In Germany, the company is launching a Parallel Import business to meet the demand for affordable pharmaceuticals.
Significant Reduction in Net Loss
The net loss for the period was reduced to $9.8 million from $47.3 million, an improvement of $37.5 million or 79%.
Strong Performance of JustCBD and Vessel
JustCBD maintained a gross profit margin of 40% with $4.2 million in sales, while Vessel maintained a gross profit margin of 55% with $1.1 million in sales. Both brands continued to expand their wholesale customer base.
New Leadership in European Operations
Dr. Manfred Ziegler, former Managing Director of CC Pharma, was appointed to lead operations in Europe, bringing extensive experience and a successful track record.
Potential Policy Advancements in the U.S.
Positive signals from U.S. political leaders regarding cannabis regulation and the introduction of the Cannabinoid Safety and Regulations Act could benefit Flora's operations.
Negative Updates
Decline in Revenue
Revenues for Q3 2024 were $12.5 million, down from $17.3 million in Q3 2023. Revenue for the first nine months of 2024 was $46.2 million, compared to $58.1 million for the same period in 2023.
Increased Operating Expenses
Total operating expenses increased to $6.5 million in Q3 2024 from $5.5 million in Q3 2023.
Challenges in the German Market
The company experienced softness in its existing German business due to increased competition and the need for business model adjustments.
Company Guidance
During the Flora Growth Corporation Q3 2024 earnings call, the company provided guidance reflecting strategic initiatives and financial metrics. Flora's revenues for the third quarter of 2024 were $12.5 million, down from $17.3 million in the same quarter of 2023, primarily due to discontinuing unprofitable lines. The company reported a net loss of $9.8 million, a significant improvement from the $47.3 million loss in the prior year. Total operating expenses increased to $6.5 million compared to $5.5 million in Q3 2023. JustCBD maintained a gross profit margin of 40% on $4.2 million in sales, while Vessel achieved a 55% margin on $1.1 million in sales. Parallel Import business and regulatory advancements in the U.S. and Germany are seen as key drivers for future growth. The company ended the quarter with $4.2 million in cash and $21.3 million in current assets, including $7.9 million in saleable inventory. Flora is optimistic about leveraging federal rescheduling in the U.S. and regulatory developments in Germany to enhance market presence.

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
35
Negative
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
40
Negative
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
45
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue52.37M59.51M76.07M37.17M8.98M106.00K
Gross Profit11.19M12.50M17.74M14.41M2.42M71.00K
EBITDA-12.09M-15.10M-45.87M-17.91M-20.61M-14.19M
Net Income-13.07M-15.91M-57.04M-52.63M-21.36M-14.26M
Balance Sheet
Total Assets22.67M26.23M23.63M80.99M85.48M19.45M
Cash, Cash Equivalents and Short-Term Investments1.47M6.02M4.35M9.54M37.61M15.52M
Total Debt7.77M4.90M3.67M4.14M1.34M649.00K
Total Liabilities18.64M21.72M17.22M24.57M8.54M3.20M
Stockholders Equity4.02M4.51M6.40M56.82M77.17M16.36M
Cash Flow
Free Cash Flow-9.15M-5.17M-8.56M-17.23M-24.63M-8.65M
Operating Cash Flow-9.04M-5.03M-8.40M-15.94M-20.65M-8.42M
Investing Cash Flow-400.00K203.00K-234.00K-15.80M-14.55M-2.16M
Financing Cash Flow4.64M6.49M3.15M4.41M58.11M25.82M

Flora Growth Technical Analysis

Technical Analysis Sentiment
Negative
Last Price10.35
Price Trends
50DMA
20.54
Negative
100DMA
22.33
Negative
200DMA
24.74
Negative
Market Momentum
MACD
-2.60
Positive
RSI
29.06
Positive
STOCH
2.89
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 10.35 is below the 20-day moving average (MA) of 16.83, below the 50-day MA of 20.54, and below the 200-day MA of 24.74, indicating a bearish trend. The MACD of -2.60 indicates Positive momentum. The RSI at 29.06 is Positive, neither overbought nor oversold. The STOCH value of 2.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FLGC.

Flora Growth Risk Analysis

Flora Growth disclosed 60 risk factors in its most recent earnings report. Flora Growth reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Flora Growth Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$7.86B-0.30-43.30%2.27%22.53%-2.21%
$31.63M-1.03-52.69%
$8.47M-0.15-33.13%-7.80%90.17%
$121.14M-381.09%616.67%-22.13%
$12.82M-230.73%-24.10%38.17%
$10.60M-36.94%2.17%88.34%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FLGC
Flora Growth
10.35
-54.19
-83.96%
YCBD
cbdMD
0.95
-3.05
-76.25%
SXTC
China SXT Pharmaceuticals
1.37
-3.25
-70.35%
COSM
Cosmos Holdings
0.93
0.16
20.78%
IMCC
IM Cannabis Corp
1.41
-0.75
-34.72%
IXHL
Incannex Healthcare Limited Sponsored ADR
0.34
-1.93
-85.02%

Flora Growth Corporate Events

Business Operations and Strategy
Flora Growth Corp. Expands Investment in Decentralized AI Network
Positive
Oct 21, 2025

Flora Growth Corp., set to rebrand as ZeroStack, has announced its second purchase of 880,025 $0G tokens, the native cryptocurrency of the 0G decentralized AI network, as part of its strategic shift to become the first publicly listed 0G treasury. This move aligns with the company’s mission to bridge traditional investors to the decentralized AI economy, marking a significant step in its strategy to push the limits of 0G adoption and fuel the success of decentralized AI.

The most recent analyst rating on (FLGC) stock is a Hold with a $23.50 price target. To see the full list of analyst forecasts on Flora Growth stock, see the FLGC Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Flora Growth Appoints BitGo as Custodian Amid Rebranding to ZeroStack
Positive
Oct 16, 2025

Flora Growth Corp., transitioning to ZeroStack, has appointed BitGo Trust Company as the custodian for its $0G treasury, emphasizing security and regulatory compliance. This move underscores the company’s commitment to transparency and operational control as it continues to offer institutional investors exposure to AI infrastructure, positioning itself strategically in the digital asset market.

The most recent analyst rating on (FLGC) stock is a Hold with a $23.50 price target. To see the full list of analyst forecasts on Flora Growth stock, see the FLGC Stock Forecast page.

Business Operations and StrategyExecutive/Board ChangesPrivate Placements and FinancingProduct-Related Announcements
Flora Growth Secures $401M, Launches $0G Token
Positive
Oct 10, 2025

On October 9, 2025, Flora Growth Corp. provided an update on its financials and progress through a blog post. The company has secured over $401 million in funding through digital assets, token allocations, convertible notes, and cash raises, with significant contributions from various investors. The launch of the $0G token and the Aristotle mainnet-infrastructure marks a significant step in building an ecosystem for decentralized AI applications. The company has also introduced new leadership to steer its long-term vision, emphasizing transparency and trust with stakeholders.

The most recent analyst rating on (FLGC) stock is a Hold with a $23.50 price target. To see the full list of analyst forecasts on Flora Growth stock, see the FLGC Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
Flora Growth Enters ‘At-the-Market’ Sales Agreement
Neutral
Sep 23, 2025

On September 23, 2025, Flora Growth Corp. entered into an ‘at-the-market’ sales agreement with Revere Securities LLC, allowing the company to sell its common shares through the agent. This agreement provides flexibility for Flora Growth to sell shares at its discretion, with proceeds intended for general corporate purposes, potentially impacting its financial strategy and market presence.

The most recent analyst rating on (FLGC) stock is a Hold with a $23.50 price target. To see the full list of analyst forecasts on Flora Growth stock, see the FLGC Stock Forecast page.

Business Operations and StrategyExecutive/Board ChangesPrivate Placements and Financing
Flora Growth Announces Strategic Agreements and Restructuring
Neutral
Sep 23, 2025

On September 19, 2025, Flora Growth Corp. announced several private placements and strategic agreements to enhance its digital asset treasury strategy. The company entered into agreements for the issuance of common shares, pre-funded warrants, and convertible notes, raising significant capital in cash, tokens, and Solana. These funds are intended to support the company’s blockchain and AI initiatives. Additionally, Flora Growth is undergoing a significant organizational restructuring, including the resignation and appointment of key executives, and the transfer of its hemp and cannabis-related business to a newly-formed entity. These moves aim to reposition Flora Growth within the digital asset and AI sectors, potentially impacting its market focus and stakeholder interests.

The most recent analyst rating on (FLGC) stock is a Hold with a $23.50 price target. To see the full list of analyst forecasts on Flora Growth stock, see the FLGC Stock Forecast page.

Business Operations and StrategyExecutive/Board ChangesPrivate Placements and Financing
Flora Growth Secures $401M Funding, Rebrands as ZeroStack to Pioneer AI Treasury Strategy
Positive
Sep 19, 2025

Flora Growth Corp. has announced a $401 million funding initiative, including a $22.88 million strategic investment from Defi Development Corp., to implement a groundbreaking AI Zero Gravity (0G) Coin Treasury Strategy. This move will see Flora rebrand as ZeroStack and appoint new leadership, while positioning the company to leverage the $0G cryptocurrency as its primary reserve asset. The initiative aims to enhance the company’s industry positioning by integrating advanced decentralized AI infrastructure, offering institutional investors equity-based exposure to AI development. The collaboration with DeFi Dev Corp. and other partners underscores a significant shift towards decentralized AI solutions, potentially impacting stakeholders by providing a scalable and privacy-first AI development platform.

The most recent analyst rating on (FLGC) stock is a Hold with a $23.50 price target. To see the full list of analyst forecasts on Flora Growth stock, see the FLGC Stock Forecast page.

Executive/Board ChangesRegulatory Filings and Compliance
Flora Growth Faces Compliance Challenge After Director’s Passing
Negative
Aug 27, 2025

On August 25, 2025, Harold Wolkin, an Independent Director of Flora Growth Corp., passed away, impacting the company’s compliance with Nasdaq’s Corporate Governance Requirements. As a result, Flora Growth’s Board and audit committee no longer meet the necessary criteria for a majority of Independent Directors and a fully independent audit committee, respectively. The company is actively seeking solutions to restore compliance within the designated cure period.

The most recent analyst rating on (FLGC) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on Flora Growth stock, see the FLGC Stock Forecast page.

Delistings and Listing ChangesRegulatory Filings and Compliance
Flora Growth Regains NASDAQ Compliance, Secures Continued Listing
Positive
Aug 20, 2025

Flora Growth Corp. has successfully regained compliance with NASDAQ’s minimum bid price requirement, ensuring its continued listing on the exchange. This development marks a significant milestone for the company, as it had previously been notified of non-compliance earlier in the year. By maintaining a closing bid price above $1.00 for 10 consecutive trading days, Flora Growth has secured its position on NASDAQ, which is crucial for its market visibility and investor confidence.

The most recent analyst rating on (FLGC) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on Flora Growth stock, see the FLGC Stock Forecast page.

Flora Growth Corp. Reports Challenging Quarter
Aug 5, 2025

Flora Growth Corp. is a global manufacturer and distributor of cannabis and pharmaceutical products, known for its plant-based wellness and lifestyle brands. The company recently released its earnings report for the quarter ending June 30, 2025, highlighting a challenging financial period. Flora Growth reported a net loss of $3.2 million for the first half of 2025, with revenues declining to $26.6 million from $33.7 million in the same period last year. The company is facing significant financial pressures, with cash reserves decreasing to $1.5 million from $6 million at the end of 2024. Despite these challenges, Flora Growth has been actively pursuing strategic acquisitions, including the purchase of United Beverage Distribution Inc., to drive synergies with its existing portfolio. Looking ahead, Flora Growth’s management is focused on securing additional capital to support its growth initiatives and meet its financial obligations, while exploring cost reduction measures to improve its financial stability.

Shareholder MeetingsStock Split
Flora Growth Executes 1-for-39 Share Consolidation
Neutral
Aug 4, 2025

On August 4, 2025, Flora Growth Corp. executed a 1-for-39 share consolidation of its common shares, following approval at its Annual Meeting on June 30, 2025. This move, effective as of August 3, 2025, was aimed at adjusting the company’s share structure without altering the rights or preferences of the shares. The consolidation did not significantly impact ownership percentages due to rounding of fractional shares.

The most recent analyst rating on (FLGC) stock is a Buy with a $4.00 price target. To see the full list of analyst forecasts on Flora Growth stock, see the FLGC Stock Forecast page.

Delistings and Listing ChangesRegulatory Filings and ComplianceStock Split
Flora Growth Corp. Announces Share Consolidation to Regain Nasdaq Compliance
Neutral
Jul 31, 2025

Flora Growth Corp. has announced a 1-for-39 share consolidation, effective August 3, 2025, to increase the bid price of its common shares and regain compliance with Nasdaq’s listing requirements. This move, approved by shareholders, will not alter the rights or preferences of the shares and is expected to impact the company’s market positioning by potentially enhancing its stock’s attractiveness to investors.

The most recent analyst rating on (FLGC) stock is a Buy with a $1.50 price target. To see the full list of analyst forecasts on Flora Growth stock, see the FLGC Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 30, 2025