Cresco Labs OTC (TSE:CL)
OTHER OTC:CL
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Cresco Labs
(OTC:CL)
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Rating:46Neutral
Price Target:
C$1.00
▼(-20.63% Downside)
Action:Reiterated
Date:06/01/26
The score is held back primarily by weak financial fundamentals (net losses, multi-year revenue decline, high leverage, and softer/volatile free cash flow) and a technically weak price trend below major moving averages. These are partially offset by a more constructive earnings outlook and operational progress outlined on the latest call, while valuation offers limited support due to a loss-making P/E and no dividend.
Positive Factors
Retail unit economics
Consistently superior store-level revenue indicates a durable competitive advantage in retail execution and brand pull. Higher per-store productivity supports stronger cash generation per invested dollar, improves payback on store openings and makes future retail expansion more accretive even amid industry pricing pressure.
Negative Factors
Elevated leverage and pressured balance sheet
A debt-to-equity ratio near 1.7x limits financial flexibility, raises refinancing and interest coverage risk, and constrains the company’s ability to fund growth or absorb shocks. Persistent leverage while profitability recovers increases long-term cost of capital and restricts strategic optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
Retail unit economics
Consistently superior store-level revenue indicates a durable competitive advantage in retail execution and brand pull. Higher per-store productivity supports stronger cash generation per invested dollar, improves payback on store openings and makes future retail expansion more accretive even amid industry pricing pressure.
Read all positive factors
Cresco Labs (CL) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$531.19M
Dividend YieldN/A
Average Volume (3M)182.98K
Price to Earnings (P/E)―
Beta (1Y)2.10
Revenue Growth-9.65%
EPS Growth-55.41%
CountryCA
Employees2,900
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.39
Shares Outstanding354,225,600
10 Day Avg. Volume199,634
30 Day Avg. Volume182,983
Financial Highlights & Ratios
PEG Ratio-0.03
Price to Book (P/B)1.22
Price to Sales (P/S)0.62
P/FCF Ratio10.78
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$2.57Price Target Upside103.68% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.07
Revenue Forecast (FY)C$653.47M
Cresco Labs Business Overview & Revenue Model
Company Description
Cresco Labs Inc., alongside its subsidiaries, is a prominent player in the United States' cannabis industry, handling the cultivation, production, and distribution of cannabis products for both recreational and medicinal markets. Their extensive p...
How the Company Makes Money
Cresco Labs primarily makes money by selling cannabis and cannabis-derived products through two main channels: (1) wholesale distribution and (2) company-operated retail dispensaries. Wholesale revenue is generated when Cresco sells its branded pr...
Cresco Labs Earnings Call Summary
Earnings Call Date:May 08, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call presents a cautiously optimistic outlook: management delivered solid Q1 margins and EBITDA from a streamlined cost structure, achieved meaningful operational and licensing wins (PA store expansion, Ohio openings, Kentucky harvest, Texas license) and provided constructive Q2 growth guidance (~+10% revenue). Offsets include near-term revenue headwinds from the planned California exit and Michigan excise tax, ongoing pricing compression, seasonal cash flow timing, and unresolved regulatory details around rescheduling (including the scope and timing of 280E relief). On balance, operational momentum, accretive M&A activity, and licensing progress outweigh the short-term market and regulatory challenges.Positive Updates
Quarterly Revenue and Profitability
Q1 2026 revenue of $151.0 million, adjusted gross profit of $77.0 million, adjusted gross margin of 51%, and adjusted EBITDA of $33.0 million (22% of revenue).
Negative Updates
Near-Term Revenue Headwinds from Market Exits and Taxes
Q1 baseline affected by planned exit from California and disruption in Michigan following the introduction of an excise tax; normalized sequential performance showed wholesale revenue down 1.6% and retail revenue down 3.1% quarter-over-quarter.
Read all updates
Q1-2026 Updates
Positive
Negative
Quarterly Revenue and Profitability
Q1 2026 revenue of $151.0 million, adjusted gross profit of $77.0 million, adjusted gross margin of 51%, and adjusted EBITDA of $33.0 million (22% of revenue).
Read all positive updates
Company Guidance
Cresco set Q1 2026 as a baseline and provided specific metrics: Q1 revenue was $151M with $77M adjusted gross profit (51% adjusted gross margin), $33M adjusted EBITDA (22% margin) and adjusted SG&A of $51M (34% of revenue); the company ended the quarter with $67M in cash and restricted cash, used $6M in operating cash flow and invested $11M in capex and acquisitions (mostly Kentucky Phase 1). Normalizing for planned exit from California and Michigan disruption, wholesale was down 1.6% and retail down 3.1% sequentially; Sunnyside stores generate over 30% more revenue per store than state averages, roughly 50% of revenue is medical, and Michigan represents <3% of total. For Q2 they expect revenue to rise ~10% sequentially, gross margins of 48–50% and adjusted EBITDA margins near 21%; operational progress includes 11 dispensaries added year-to-date (bringing Pennsylvania to 27 stores via a 9-store MSA and Ohio to 8 stores after 2 openings), Kentucky’s first harvest in April with branded product arriving in Q2, and receipt of 1 of 15 Texas merit-based licenses.Cresco Labs Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
42
Neutral
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 638.93M | 667.33M | 724.34M | 770.88M | 842.68M | 821.68M |
| Gross Profit | 304.71M | 324.57M | 364.45M | 362.37M | 407.01M | 406.35M |
| EBITDA | 117.89M | 20.34M | 114.28M | -13.97M | -10.66M | -159.63M |
| Net Income | -133.83M | -137.78M | -74.44M | -175.52M | -212.05M | -319.60M |
Balance Sheet | ||||||
| Total Assets | 1.20B | 1.20B | 1.36B | 1.36B | 1.58B | 1.78B |
| Cash, Cash Equivalents and Short-Term Investments | 63.62M | 90.92M | 137.56M | 103.43M | 119.34M | 223.54M |
| Total Debt | 587.20M | 583.10M | 639.64M | 682.76M | 670.17M | 624.74M |
| Total Liabilities | 955.32M | 943.08M | 967.18M | 930.40M | 996.01M | 982.73M |
| Stockholders Equity | 336.26M | 339.83M | 474.85M | 505.69M | 627.04M | 755.55M |
Cash Flow | ||||||
| Free Cash Flow | -186.04K | 38.41M | 108.99M | 681.00K | -67.39M | -82.57M |
| Operating Cash Flow | 37.34M | 74.17M | 132.48M | 58.56M | 18.74M | 14.49M |
| Investing Cash Flow | -47.06M | -41.42M | -25.23M | -44.59M | -36.58M | -163.93M |
| Financing Cash Flow | -84.83M | -83.52M | -71.48M | -26.91M | -86.64M | 235.00M |
Cresco Labs Technical Analysis
Negative
1.26
Price Trends
1.30
Negative
1.33
Negative
1.46
Negative
Market Momentum
-0.04
Positive
43.13
Neutral
16.67
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CL, the sentiment is Negative. The current price of 1.26 is above the 20-day moving average (MA) of 1.22, below the 50-day MA of 1.30, and below the 200-day MA of 1.46, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 43.13 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CL.
Cresco Labs Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$2.35B | 14.43 | 6.59% | ― | 4.14% | 146.77% | |
56 Neutral | C$3.71B | -24.90 | -12.61% | ― | -2.25% | 55.22% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
48 Neutral | C$2.17B | -1.55 | -33.23% | ― | -6.05% | 25.64% | |
46 Neutral | C$531.19M | -2.16 | -35.26% | ― | -9.65% | -55.41% | |
40 Neutral | C$18.10M | -0.06 | ― | ― | ― | ― |
* Healthcare Sector Average
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Cresco Labs Corporate Events
Business Operations and Strategy
Cresco Labs Expands Ohio Footprint With New Sunnyside Bridgeport Dispensary
Positive
Apr 10, 2026
Cresco Labs has opened Sunnyside Bridgeport, a new cannabis dispensary at 435 Main Street in Bridgeport, Ohio, marking its seventh location in the state and 73rd nationwide. Positioned near major transportation routes by the Ohio River, the store ...
Business Operations and StrategyRegulatory Filings and Compliance
Cresco Labs Secures Vertically Integrated Medical Cannabis License in Texas
Positive
Apr 2, 2026
Cresco Labs has been conditionally awarded a vertically integrated license under the Texas Compassionate Use Program, allowing it to cultivate, process and dispense medical cannabis in the state. Management framed the win as a validation of the co...
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.