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Cannabist Company Holdings (TSE:CBST)
NEO-L:CBST
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Cannabist Company Holdings (CBST) AI Stock Analysis

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TSE:CBST

Cannabist Company Holdings

(NEO-L:CBST)

Rating:44Neutral
Price Target:
C$0.50
▼(-10.71% Downside)
The overall stock score of 44 reflects significant financial challenges, including declining revenues, high debt, and negative cash flows. While there are some operational improvements noted in the earnings call, the technical analysis indicates a lack of momentum and potential overbought conditions. The negative P/E ratio and lack of dividend yield further weigh down the valuation.
Positive Factors
Expansion and Acquisitions
Verano set to expand operations in Arizona and enter Virginia via acquisitions with The Cannabist Co.
Financial Benefit
The transaction terms indicate potential financial benefit for CBST through cash and voting shares.
Negative Factors
Asset Dispositions
CBST progresses on previously announced planned asset dispositions.

Cannabist Company Holdings (CBST) vs. iShares MSCI Canada ETF (EWC)

Cannabist Company Holdings Business Overview & Revenue Model

Company DescriptionThe Cannabist Company Holdings Inc. engages in the cultivation, manufacture, and provision of cannabis products and related services in the United States and internationally. The company offers spanning flower, edibles, oils, and tablets under the Seed & Strain, Triple Seven, Hedy, gLeaf, Classix, Press, and Amber brand names. It holds licenses in 17 jurisdictions in the United States. The company was formerly known as Columbia Care Inc. and changed its name to The Cannabist Company Holdings Inc. in September 2023. The company was founded in 2012 and is headquartered in New York, New York.
How the Company Makes MoneyCannabist Company Holdings generates revenue through several key streams. Primarily, the company earns money from the sale of cannabis products across its retail outlets and through wholesale distribution to other businesses. CBST also leverages strategic partnerships with other cannabis brands and companies to enhance its product offerings and market reach. Additionally, the company may generate income through licensing agreements, allowing other businesses to produce and sell products under its brand name. The company's revenue is significantly influenced by the regulatory environment and consumer demand within the legal cannabis market.

Cannabist Company Holdings Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mixed performance with significant operational improvements and strategic market exits, but also faced challenges with revenue decline and margin pressures. The company is focusing on liquidity management and operational simplification to address these issues.
Q2-2025 Updates
Positive Updates
Debt Restructuring Completion
Completed a debt restructuring transaction, extending the maturity of $271 million of senior debt obligations until at least December 2028.
Successful Launch in Delaware
Successfully launched adult-use sales in all three retail locations in Delaware on August 1.
Revenue Growth in Key Markets
New Jersey and Colorado achieved the biggest sequential revenue growth. Maryland, New Jersey, and Ohio saw the largest increases in adjusted EBITDA sequentially.
Positive Adjusted EBITDA Margin
Achieved a 30 basis point improvement in adjusted EBITDA margin to 9.8% in the second quarter.
Growth in Cannabis Brands
Cannabis portfolio of brands saw revenue growth of 17% sequentially in New Jersey, with Seed & Strain leading, followed by Triple Seven.
Negative Updates
Revenue Decline
Second quarter revenue was $87 million, a decrease of 1% from the first quarter, mainly due to the sale of two retail locations in California and ongoing pricing pressure.
Decrease in Gross Margin
Gross margin decreased to 33% in the second quarter from 36% in the first quarter, driven largely by inventory obsolescence and a wholesale inventory reduction initiative.
Negative Free Cash Flow
Free cash flow in the quarter was negative $3.5 million, and cash decreased from $18.9 million at the end of Q1 to $15.5 million at the end of Q2.
Company Guidance
During The Cannabist Company's second quarter 2025 earnings call, several key metrics and strategic initiatives were highlighted. The company reported $87 million in revenue, a slight 1% decrease from the previous quarter, primarily due to asset sales and pricing pressures. They achieved an adjusted EBITDA of $8.5 million, with a 30 basis point improvement in margin to 9.8%. Wholesale revenue increased by 16% sequentially, contributing to 21% of total revenue, despite a decline in wholesale gross margin due to inventory reduction efforts. The company is actively managing liquidity, reducing costs, and restructuring operations, including divesting assets in Florida, California, Illinois, and Pennsylvania. They closed the quarter with $15.5 million in cash and plan to enhance revenue streams through new agreements in Pennsylvania. Additionally, the company aims to maintain CapEx below $3 million per quarter, focusing on new store openings and operational enhancements.

Cannabist Company Holdings Financial Statement Overview

Summary
Cannabist Company Holdings faces significant financial challenges across all verticals. The income statement shows declining revenues and persistent losses, while the balance sheet is burdened with high debt and negative equity. Cash flow issues further exacerbate the situation, with negative operating and free cash flows. The company needs to address these financial weaknesses to improve its financial health and stability.
Income Statement
35
Negative
The income statement reveals significant challenges, with declining revenue growth at -9.17% TTM and negative net profit margins consistently over the years. The gross profit margin has slightly decreased to 35.03% TTM, indicating some pressure on profitability. The company has struggled with negative EBIT and EBITDA margins, reflecting operational inefficiencies.
Balance Sheet
20
Very Negative
The balance sheet shows a concerning financial structure with a negative stockholders' equity of -$137.97 million TTM, leading to an unsustainable debt-to-equity ratio of -7.66. The return on equity is positive at 10.11% TTM, but this is due to the negative equity, which is not a healthy sign. The equity ratio is negative, indicating liabilities exceed assets.
Cash Flow
30
Negative
Cash flow analysis indicates negative operating cash flow and free cash flow, with a declining free cash flow growth rate of -18.86% TTM. The operating cash flow to net income ratio is negative, suggesting cash flow issues. However, the free cash flow to net income ratio is above 1, indicating some ability to cover net losses with free cash flow.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue384.71M458.72M511.33M491.31M456.03M188.99M
Gross Profit124.15M168.30M179.97M136.13M146.92M52.68M
EBITDA-15.44M28.61M-51.30M-282.36M-63.14M-115.66M
Net Income-166.56M-105.89M-175.71M-399.52M-141.84M-100.85M
Balance Sheet
Total Assets563.84M696.17M823.11M994.28M1.37B727.53M
Cash, Cash Equivalents and Short-Term Investments15.46M33.61M36.91M48.13M82.09M61.11M
Total Debt444.50M478.42M546.32M566.97M420.75M295.21M
Total Liabilities702.68M726.23M757.76M787.47M824.57M440.58M
Stockholders Equity-137.97M-28.69M66.53M213.19M570.62M306.82M
Cash Flow
Free Cash Flow-31.85M-29.21M-2.50M-179.70M-132.64M-97.42M
Operating Cash Flow-24.79M-23.38M7.47M-106.99M-518.40K-52.27M
Investing Cash Flow36.06M30.98M-3.50M-72.34M-189.67M-24.02M
Financing Cash Flow-18.58M-9.00M-14.12M147.59M200.66M90.00M

Cannabist Company Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.56
Price Trends
50DMA
0.56
Positive
100DMA
0.56
Negative
200DMA
0.56
Negative
Market Momentum
MACD
>-0.01
Neutral
RSI
100.00
Negative
STOCH
66.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CBST, the sentiment is Negative. The current price of 0.56 is below the 20-day moving average (MA) of 0.56, above the 50-day MA of 0.56, and below the 200-day MA of 0.56, indicating a neutral trend. The MACD of >-0.01 indicates Neutral momentum. The RSI at 100.00 is Negative, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CBST.

Cannabist Company Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
51
Neutral
$7.84B-0.18-41.53%2.28%22.72%-1.87%
44
Neutral
$227.80M-554.70%-21.73%4.03%
$471.42M-98.42%
$229.89M121.831.86%
$303.86M97.05-0.70%
$149.63M7.2522.40%
54
Neutral
C$580.48M-45.36%-12.25%-47.36%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:CBST
Cannabist Company Holdings
0.56
0.00
0.00%
CGC
Canopy Growth
1.80
-3.24
-64.29%
OGI
OrganiGram Holdings
1.73
-0.06
-3.35%
ACB
Aurora Cannabis
5.42
-0.42
-7.19%
CBWTF
Auxly Cannabis Group
0.11
0.08
266.67%
TSE:TSND
TerrAscend Corp
1.57
-0.02
-1.26%

Cannabist Company Holdings Corporate Events

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Cannabist Company Reports Q2 2025 Results Amid Strategic Restructuring
Neutral
Aug 7, 2025

The Cannabist Company reported a challenging second quarter of 2025, with a slight decline in revenue and gross margin due to strategic divestitures and inventory adjustments. Despite these challenges, the company made significant progress in restructuring its debt and optimizing its operational footprint, including the sale of retail locations and the launch of adult-use cannabis sales in Delaware. The company remains focused on managing liquidity and enhancing its product offerings, with plans to open new retail locations in Ohio.

The most recent analyst rating on (TSE:CBST) stock is a Hold with a C$0.10 price target. To see the full list of analyst forecasts on Cannabist Company Holdings stock, see the TSE:CBST Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
The Cannabist Company Launches Adult-Use Cannabis Sales in Delaware
Positive
Aug 1, 2025

The Cannabist Company has launched adult-use cannabis sales in Delaware, expanding its market presence with three Columbia Care dispensaries strategically located across the state. The company’s cultivation facility in Milford and its portfolio of premium cannabis products, including house brands and brand partner Ric Flair Drip, are now available to adult consumers. This expansion is expected to enhance the company’s operations and strengthen its position in the cannabis industry, providing new opportunities for growth and engagement with Delaware communities.

The most recent analyst rating on (TSE:CBST) stock is a Buy with a C$0.70 price target. To see the full list of analyst forecasts on Cannabist Company Holdings stock, see the TSE:CBST Stock Forecast page.

Financial Disclosures
The Cannabist Company to Announce Q2 2025 Financial Results
Neutral
Jul 10, 2025

The Cannabist Company announced it will release its second-quarter 2025 financial results on August 7, 2025, before U.S. markets open, followed by a conference call. This announcement is significant for stakeholders as it provides insights into the company’s financial health and operational performance, potentially influencing its market position and investor confidence.

The most recent analyst rating on (TSE:CBST) stock is a Buy with a C$0.70 price target. To see the full list of analyst forecasts on Cannabist Company Holdings stock, see the TSE:CBST Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
The Cannabist Company Completes Strategic Financial Restructuring
Positive
May 30, 2025

The Cannabist Company Holdings Inc. has successfully completed a court-approved plan of arrangement, which involved exchanging existing senior secured notes for new senior notes due in 2028 and issuing new common shares and warrants to stakeholders. This strategic financial restructuring aims to enhance the company’s financial stability and operational flexibility, potentially strengthening its market position in the competitive cannabis industry.

The most recent analyst rating on (TSE:CBST) stock is a Hold with a C$0.10 price target. To see the full list of analyst forecasts on Cannabist Company Holdings stock, see the TSE:CBST Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Cannabist Company Receives Court Approval for Strategic Arrangement
Positive
May 22, 2025

The Cannabist Company Holdings Inc. announced it has received court approval for its previously announced plan of arrangement under the Canada Business Corporations Act. This approval marks a significant step forward for the company, with the closing date targeted for May 29, 2025, pending regulatory approvals. The arrangement involves the issuance of new warrants to shareholders and is expected to impact the company’s operational structure and market positioning, enhancing its ability to deliver products and services across its network.

The most recent analyst rating on (TSE:CBST) stock is a Hold with a C$0.10 price target. To see the full list of analyst forecasts on Cannabist Company Holdings stock, see the TSE:CBST 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: Aug 20, 2025