Flora Growth (FLGC) AI Stock Analysis

• Market Cap: $6.60M
• Dividend Yield: N/A
• Average Volume (3M): 79.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.57
• 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: 746,810
• 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: 2.66
• Enterprise Value/Revenue: 0.35
• Enterprise Value/Gross Profit: 2.02
• Enterprise Value/Ebitda: -1.50
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: $10.00 ▲(13.12% Upside)

Flora Growth's overall stock score is primarily impacted by its weak financial performance and poor valuation, reflecting significant challenges in profitability and financial stability. However, recent corporate events provide a positive outlook, with substantial funding and strategic initiatives that could improve the company's future prospects. Technical analysis indicates a bearish trend, further weighing on the stock's attractiveness.

Positive Factors

Strategic Investment

The $25M investment agreement with White Lion provides financial flexibility and supports strategic growth initiatives, enhancing long-term stability.

Digital Asset Strategy

Securing $401M and launching the $0G token positions Flora Growth in the digital asset space, potentially opening new revenue streams and market opportunities.

Leadership Change

Introducing new leadership can drive strategic shifts and innovation, potentially improving operational efficiency and aligning with long-term goals.

Negative Factors

Revenue Decline

A significant revenue decline indicates challenges in market demand or competitive positioning, affecting long-term growth prospects.

High Leverage

Increased leverage can strain financial flexibility and elevate risk, potentially impacting future investment and operational capabilities.

Negative Cash Flow

Persistent negative cash flow from operations indicates ongoing financial strain, limiting the company's ability to fund growth and innovation.

Flora Growth Business Overview & Revenue Model

Company Description

Flora Growth Corp (FLGC) is a Canadian-based company engaged in the cultivation, production, and distribution of cannabis and hemp-derived products. The company operates in the cannabis sector, focusing on both wellness and lifestyle products. Flora Growth's core offerings include a range of consumer products such as oils, topicals, and beauty items, alongside their commitment to sustainable and organic practices in the cultivation and manufacturing processes.

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 experiencing 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: 8.84
• 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 8.84 is above the 20-day moving average (MA) of 8.68, below the 50-day MA of 11.07, and below the 200-day MA of 20.52, indicating a bearish trend. The MACD of -0.46 indicates Negative momentum. The RSI at 39.18 is Neutral, neither overbought nor oversold. The STOCH value of 7.56 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%
FLGC	46 Neutral	$6.60M	-0.25	-37.38%	―	-22.60%	53.82%
IMCC	45 Neutral	$9.08M	-2.24	-93.87%	―	-0.74%	81.49%
YCBD	40 Underperform	$12.75M	-0.37	-33.13%	―	-7.80%	90.17%
IXHL	39 Underperform	$144.83M	-0.38	-114.52%	―	-86.05%	24.17%
COSM	39 Underperform	$17.53M	-0.71	-63.82%	―	―	―

Flora Growth Corporate Events

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.

Flora Growth Secures $401M, Launches $0G Token

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.

Flora Growth Enters ‘At-the-Market’ Sales Agreement

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.

Flora Growth Announces Strategic Agreements and Restructuring

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.