Flora Growth (FLGC) AI Stock Analysis

• Market Cap: $12.86M
• Dividend Yield: N/A
• Average Volume (3M): 14.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.64
• Revenue Growth: -24.10%
• EPS Growth: 38.17%
• Country: US
• Employees: 64
• Sector: Healthcare
• Sector Strength: 48
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.11
• Shares Outstanding: 578,683
• 10 Day Avg. Volume: 15,891
• 30 Day Avg. Volume: 14,204
• 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: 1.37
• Enterprise Value/Revenue: 0.34
• Enterprise Value/Gross Profit: 1.57
• Enterprise Value/Ebitda: -1.45
• 1Y Price Target: $30.00
• Price Target Upside: 35.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 41 Neutral
• Price Target: $21.00 ▼(-4.85% Downside)

Flora Growth's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenue and persistent losses. The technical analysis suggests a bearish trend, while the valuation is unattractive due to a negative P/E ratio. Additionally, recent corporate governance challenges add to the company's risks, further weighing down the stock's attractiveness.

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 makes money through multiple revenue streams, primarily centered around the cultivation and sale of cannabis products. The company's revenue model includes wholesale sales of cannabis biomass to other businesses, as well as the manufacture and distribution of branded cannabis products for direct sale to consumers. Additionally, Flora Growth engages in strategic partnerships and licensing agreements to expand its market reach and product offerings. The company benefits from its low-cost cultivation operations in Colombia, which enhance its competitiveness in the global market. By exporting its products to international markets, Flora Growth capitalizes on growing global demand for cannabis and related products.

Flora Growth Financial Statement Overview

Summary

Flora Growth is experiencing significant financial challenges, including declining revenue by 21.75% and persistent losses with a negative net profit margin. The balance sheet shows increased leverage with a debt-to-equity ratio of 1.09 and decreased stockholders' equity. Although there's some improvement in free cash flow, overall financial instability is evident.

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	52.37M	59.51M	76.07M	37.17M	8.98M	106.00K
Gross Profit	11.19M	12.50M	17.74M	14.41M	2.42M	71.00K
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 Assets	22.67M	26.23M	23.63M	80.99M	85.48M	19.45M
Cash, Cash Equivalents and Short-Term Investments	1.47M	6.02M	4.35M	9.54M	37.61M	15.52M
Total Debt	7.77M	4.90M	3.67M	4.14M	1.34M	649.00K
Total Liabilities	18.64M	21.72M	17.22M	24.57M	8.54M	3.20M
Stockholders Equity	4.02M	4.51M	6.40M	56.82M	77.17M	16.36M
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	-400.00K	203.00K	-234.00K	-15.80M	-14.55M	-2.16M
Financing Cash Flow	4.64M	6.49M	3.15M	4.41M	58.11M	25.82M

Flora Growth Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLGC, the sentiment is Positive. The current price of 22.07 is above the 20-day moving average (MA) of 20.69, below the 50-day MA of 23.26, and below the 200-day MA of 31.38, indicating a neutral trend. The MACD of -0.51 indicates Negative momentum. The RSI at 50.68 is Neutral, neither overbought nor oversold. The STOCH value of 50.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FLGC.

Flora Growth Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNDL	61 Neutral	$635.78M	―	-8.30%	―	0.70%	15.62%
Sector *	51 Neutral	$7.83B	-0.18	-40.10%	2.29%	21.46%	-2.03%
TLRY	50 Neutral	$1.60B	―	-88.27%	―	4.10%	-594.06%
YCBD	44 Neutral	$6.33M	―	-33.13%	―	-7.80%	90.17%
FLGC	41 Neutral	$12.86M	―	-230.73%	―	-24.10%	38.17%
IXHL	39 Underperform	$66.50M	―	-201.88%	―	―	―
KALA	31 Underperform	$65.37M	―	-708.34%	―	―	51.27%

Flora Growth Corporate Events

Flora Growth Faces Compliance Challenge After Director’s Passing

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.

Flora Growth Executes 1-for-39 Share Consolidation

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.