Cresco Labs (CL) AI Stock Analysis

• Market Cap: C$601.92M
• Dividend Yield: N/A
• Average Volume (3M): 94.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.34
• Revenue Growth: -6.48%
• EPS Growth: 22.63%
• Country: CA
• Employees: 2,900
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.34
• Shares Outstanding: 340,486,820
• 10 Day Avg. Volume: 96,169
• 30 Day Avg. Volume: 94,034
• PEG Ratio: -0.03
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 0.62
• P/FCF Ratio: 10.78
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$2.50
• Price Target Upside: 83.79% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): -0.11
• Revenue Forecast (FY): C$624.12M

• Rating: 45 Neutral
• Price Target: C$1.50 ▲(10.29% Upside)
• Action: Reiterated Date: 03/08/26
• Date: Action: Reiterated 03/08/26

The score is held back primarily by weak financial performance (sharp revenue contraction, continued net losses, and worsening leverage despite positive cash flow). Technicals are mixed with soft momentum, while the earnings call adds modest support through margin/cash-flow progress and improved maturity profile but is tempered by near-term revenue and margin headwinds. Valuation is difficult to support due to negative earnings and no dividend yield.

Positive Factors

Debt refinancing improved flexibility

Refinancing that reduces debt size and extends maturities is a durable improvement to liquidity and refinancing risk. It strengthens the company's ability to fund capex, store rollouts and targeted M&A over the next several quarters without forcing distressed asset sales or urgent refinancing.

Leading branded share in key states

Top branded share positions and quarterly wholesale growth indicate durable distribution scale and brand strength. Market leadership in multiple states supports pricing power, channel access and capacity utilization, underpinning steadier revenue and margin recovery over ensuing quarters.

Stable operating profitability metrics

Positive adjusted gross profit and EBITDA demonstrate core operations can generate cash despite headline losses. Combined with a moderate gross margin (48.42%) and operating cash flow generation, this suggests operational efficiency that can sustain reinvestment and improve earnings quality over several quarters.

Negative Factors

High leverage

A debt-to-equity ratio of 1.36 with negative ROE (-11.54%) signals material financial leverage that limits flexibility. Elevated leverage increases interest and covenant risk, reducing room to absorb demand shocks or fund expansion without further refinancing or equity raises in the medium term.

Declining revenue and net losses

Negative revenue growth and a persistent net loss margin undermine scale economics and cash generation. Without consistent top-line increases, the company faces pressure to convert operational improvements into sustainable net profits and free cash flow over coming quarters.

Price compression & higher cost inventory

Structural price compression and inventory sold at higher production cost are direct threats to margin sustainability. Exiting low-return markets like California reduces distraction but also highlights margin pressure and the need to restore unit economics across core markets over the next several quarters.

Cresco Labs Business Overview & Revenue Model

Company Description

Cresco Labs Inc., together with its subsidiaries, cultivates, manufactures, and sells retail and medical cannabis products in the United States. It provides cannabis in flowers, vape pens, live resins, disposable pens, and extracts under the Cresco brand; vape carts, vape pens, flower, popcorn, shake, pre-rolls, shorties, and concentrates under the High Supply brand; vapes and gummies under the Good News brand; vapes and edibles under the Wonder Wellness Co. brand; and tinctures, capsules, salves, and sublingual oils under the Remedi brand, as well as cannabis products under the Reserve brand. The company also offers cannabis flowers under the FloraCal brand; and chocolate and toffee confections, fruit-forward gummies, hard sweets, and taffy under the Mindy's Edibles brand, as well as licenses the Kiva brand, which produces cannabis infused edibles, including chocolate confections, gummies, mints, and tarts. In addition, the company offers cannabis-infused edibles under the Sunnyside brand. As of December 6, 2022, it owned and operated 55 dispensaries. The company was founded in 2013 and is headquartered in Chicago, Illinois.

How the Company Makes Money

Cresco Labs generates revenue primarily through the sale of its cannabis products across various states where it operates. The company holds licenses for cultivation and retail operations, allowing it to produce its own products and sell them directly to consumers through its dispensaries. Key revenue streams include wholesale sales of cannabis flower and processed products to other dispensaries, retail sales from its own dispensaries, and partnerships with other cannabis brands for product distribution. Additionally, Cresco Labs benefits from strategic partnerships that enhance its market reach and expand its product offerings, contributing to its overall earnings.

Cresco Labs Financial Statement Overview

Summary

Operational metrics show progress with positive EBIT/EBITDA and positive free cash flow, but the company remains loss-making with a -21% net margin and a steep revenue decline (~43% in 2025). Balance-sheet risk is elevated as leverage worsened (debt-to-equity ~2.31) alongside a sharp drop in equity.

Income Statement

Profitability has improved versus earlier years (positive EBIT and EBITDA in 2024–2025), and gross margin remains solid at ~46% in 2025. However, the business is still loss-making with a -21% net margin in 2025, and revenue is shrinking (down ~43% in 2025 after a ~6% decline in 2024), which puts pressure on scale and the path to sustainable earnings.

Balance Sheet

Leverage is elevated and worsening: debt-to-equity rose to ~2.31 in 2025 from ~1.35 in 2023–2024, driven by a sharp decline in equity (from ~475M in 2024 to ~252M in 2025). With continued net losses, return on equity remains deeply negative in 2025, leaving the balance sheet more vulnerable if profitability or revenue does not stabilize.

Cash Flow

Cash generation is a relative bright spot: operating cash flow was positive in 2025 (~74M) and free cash flow remained positive (~38M). That said, cash flow weakened versus 2024 (free cash flow down sharply and negative growth), and operating cash flow covers less of accounting earnings quality than in 2024, suggesting less cushion if operating conditions soften further.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	667.33M	724.34M	770.88M	842.68M	821.68M
Gross Profit	324.57M	364.45M	362.37M	407.01M	406.35M
EBITDA	20.34M	114.28M	-13.97M	-10.66M	-159.63M
Net Income	-137.78M	-74.44M	-175.52M	-212.05M	-319.60M
Balance Sheet
Total Assets	1.20B	1.36B	1.36B	1.58B	1.78B
Cash, Cash Equivalents and Short-Term Investments	90.92M	137.56M	103.43M	119.34M	223.54M
Total Debt	583.10M	639.64M	682.76M	670.17M	624.74M
Total Liabilities	943.08M	967.18M	930.40M	996.01M	982.73M
Stockholders Equity	339.83M	474.85M	505.69M	627.04M	755.55M
Cash Flow
Free Cash Flow	38.41M	108.99M	681.00K	-67.39M	-82.57M
Operating Cash Flow	74.17M	132.48M	58.56M	18.74M	14.49M
Investing Cash Flow	-41.42M	-25.23M	-44.59M	-36.58M	-163.93M
Financing Cash Flow	-83.52M	-71.48M	-26.91M	-86.64M	235.00M

Cresco Labs Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.36
• 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 TSE:CL, the sentiment is Neutral. The current price of 1.36 is above the 20-day moving average (MA) of 1.33, below the 50-day MA of 1.48, and below the 200-day MA of 1.36, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 49.52 is Neutral, neither overbought nor oversold. The STOCH value of 47.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:CL.

Cresco Labs Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GTII	65 Neutral	C$2.08B	16.23	6.29%	―	6.18%	-28.69%
TRUL	56 Neutral	C$1.67B	-13.95	-9.71%	―	4.27%	3.41%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CURA	50 Neutral	C$2.45B	-8.05	-28.58%	―	-3.38%	-31.35%
VRNO	48 Neutral	C$2.17B	-1.75	-30.10%	―	-4.58%	-141.91%
CL	45 Neutral	C$601.92M	-1.18	-33.00%	―	-6.48%	22.63%
AYR.A	40 Neutral	C$18.10M	-0.08	―	―	0.63%	-31.86%

Cresco Labs Corporate Events

Cresco Labs Grows Cash Flow and Margins Despite 2025 Impairment Charges

Cresco Labs reported full-year 2025 revenue of $656 million, gross profit of $325 million and adjusted EBITDA of $157 million, while generating $73 million in operating cash flow and $38 million in free cash flow. The company reduced adjusted SG&A, maintained leading market share in key states, and ended the year with $91 million in cash and $330 million in debt on its balance sheet.

In the fourth quarter, Cresco Labs delivered $162 million in revenue, a 52.2% adjusted gross margin and $40 million in adjusted EBITDA, alongside $27 million in operating cash flow. Despite a net loss driven largely by non-cash impairment charges tied to its New York and California operations, management emphasized improved margins, strengthened cash generation and a strategy to capitalize on industry consolidation and potential federal reforms.

The most recent analyst rating on (TSE:CL) stock is a Hold with a C$1.50 price target. To see the full list of analyst forecasts on Cresco Labs stock, see the TSE:CL Stock Forecast page.

Cresco Labs Sets March 5 Date to Report Q4 and Full-Year 2025 Results

Cresco Labs announced it will release its full-year and fourth-quarter 2025 financial results on March 5, 2026, before the market opens, followed by an earnings conference call and webcast for investors. The planned disclosure underscores the company’s ongoing communication with the market and offers stakeholders insight into its operational performance and brand strategy execution in the competitive U.S. cannabis sector.

The call will provide key business highlights and will be accessible live and via an archived webcast on the Cresco Labs investor relations website for one year. This extended access is intended to increase transparency and engagement with shareholders and analysts, potentially informing views on Cresco’s growth trajectory, retail footprint under the Sunnyside brand and its positioning among leading multi-state cannabis operators.

The most recent analyst rating on (TSE:CL) stock is a Hold with a C$1.50 price target. To see the full list of analyst forecasts on Cresco Labs stock, see the TSE:CL Stock Forecast page.

Cresco Labs Launches US$100 Million At-the-Market Equity Program

Cresco Labs has established an at-the-market (ATM) equity offering program that will allow it to issue and sell up to approximately US$100 million (C$140 million) of subordinate voting shares from time to time through Haywood Securities on Canadian marketplaces. Management says the program adds flexible, opportunistic access to capital to support general corporate purposes and potential acquisitions, with any use of the facility guided by market conditions, the company’s valuation and the availability of accretive opportunities that can enhance profitability and strengthen the balance sheet, underscoring a disciplined capital allocation approach as the cannabis sector matures and regulatory reform advances.

The most recent analyst rating on (TSE:CL) stock is a Hold with a C$1.50 price target. To see the full list of analyst forecasts on Cresco Labs stock, see the TSE:CL Stock Forecast page.

Cresco Labs Expands Florida Footprint With New Sunnyside Tamarac Dispensary

Cresco Labs has opened a new Sunnyside dispensary in Tamarac, Florida, its 31st location in the state and 72nd nationwide, expanding its medical cannabis retail footprint in what it describes as the largest medical market in the U.S. The Sunnyside Tamarac store, located on North University Drive, offers a broad range of Cresco Labs’ branded cannabis products and accessories, supports both in-store and online ordering, and underscores the company’s strategy of deepening patient access, brand presence and customer education across Florida’s growing medical marijuana market.

The most recent analyst rating on (TSE:CL) stock is a Hold with a C$2.00 price target. To see the full list of analyst forecasts on Cresco Labs stock, see the TSE:CL Stock Forecast page.

Cresco Labs Hails U.S. Cannabis Rescheduling as Watershed Moment for Industry

Cresco Labs has welcomed the U.S. federal government’s decision to move cannabis from Schedule I to Schedule III, calling it the most consequential milestone in the history of the American cannabis sector. CEO Charlie Bachtell said rescheduling recognizes cannabis as medicine, narrows the gap between federal law and widespread state-level legalization, and is expected to ease punitive tax treatment, enable more robust medical research, and lay the foundation for future reforms in banking access and capital markets. The company argues the policy shift will validate state regulatory frameworks, support the roughly 450,000 workers in the regulated cannabis industry and help normalize cannabis as a mainstream U.S. industry, reinforcing Cresco’s strategy of building respected national brands and expanding its operational footprint in a more accommodating federal environment.

The most recent analyst rating on (TSE:CL) stock is a Hold with a C$2.00 price target. To see the full list of analyst forecasts on Cresco Labs stock, see the TSE:CL Stock Forecast page.