Cresco Labs (CL) AI Stock Analysis

• Market Cap: C$440.47M
• Dividend Yield: N/A
• Average Volume (3M): 220.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.37
• 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): -0.07
• Shares Outstanding: 340,486,820
• 10 Day Avg. Volume: 349,147
• 30 Day Avg. Volume: 219,999
• PEG Ratio: 0.07
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 2.89
• 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$2.41
• Price Target Upside: 95.87% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: C$1.00 ▼(-18.70% Downside)

Cresco Labs' overall stock score is primarily impacted by its financial performance challenges, including declining revenues and high leverage. The technical analysis indicates bearish momentum, further weighing on the score. While the earnings call provided some positive insights regarding strategic expansions and debt refinancing, these are overshadowed by ongoing profitability and valuation concerns.

Positive Factors

Strategic Market Expansion

Expanding in Ohio and entering new markets like Germany and Kentucky strengthens Cresco's market position and diversifies revenue streams, supporting long-term growth.

Debt Refinancing Success

Refinancing enhances financial flexibility, allowing Cresco to invest in growth opportunities and stabilize its balance sheet, crucial for long-term sustainability.

Wholesale Market Gains

Strong wholesale growth and market share gains in key states indicate robust demand and competitive positioning, supporting Cresco's revenue stability and expansion.

Negative Factors

Declining Revenue Growth

Declining revenue growth reflects challenges in maintaining sales momentum, which could hinder long-term profitability and market competitiveness.

High Leverage

High leverage increases financial risk and limits Cresco's ability to invest in growth initiatives, potentially affecting long-term financial health and operational flexibility.

Price Compression Challenges

Price compression pressures margins and profitability, challenging Cresco's ability to maintain competitive pricing and sustain long-term earnings growth.

Cresco Labs Business Overview & Revenue Model

Company Description

Cresco Labs (CL) is a leading cannabis company based in the United States, focusing on the cultivation, manufacturing, and distribution of cannabis products. The company operates in multiple sectors of the cannabis industry, including medical and adult-use markets. Cresco Labs is known for its extensive portfolio of branded cannabis products, which includes flower, edibles, oils, and concentrates, and it emphasizes quality, consistency, and innovation in its offerings.

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

Cresco Labs faces significant financial challenges, with declining revenues and profitability issues. High leverage and negative returns on equity indicate financial risk, while cash flow metrics suggest difficulties in generating sufficient cash. The company needs to address operational inefficiencies and improve its financial stability to enhance its overall financial health.

Income Statement

Cresco Labs has experienced declining revenue growth, with a negative growth rate of -2.94% in the TTM. The gross profit margin remains relatively stable at 48.34%, but the net profit margin is negative at -11.86%, indicating ongoing profitability challenges. The EBIT and EBITDA margins have also decreased, reflecting operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio is high at 1.35, indicating significant leverage. Return on equity is negative, showing that the company is not generating profit from its equity base. The equity ratio is not provided, but the high debt levels suggest potential financial risk.

Cash Flow

Cresco Labs has a negative free cash flow growth rate of -14.13% in the TTM, indicating declining cash generation. The operating cash flow to net income ratio is positive at 1.40, suggesting some ability to cover net losses with operating cash. However, the free cash flow to net income ratio is below 1, highlighting cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	685.07M	724.34M	770.88M	842.68M	821.68M	476.25M
Gross Profit	339.35M	364.45M	362.37M	407.01M	406.35M	206.70M
EBITDA	136.28M	114.28M	-13.97M	-10.66M	-159.63M	5.23M
Net Income	-45.68M	-74.44M	-175.52M	-212.05M	-319.60M	-102.16M
Balance Sheet
Total Assets	1.35B	1.36B	1.36B	1.58B	1.78B	1.33B
Cash, Cash Equivalents and Short-Term Investments	146.61M	137.56M	103.43M	119.34M	223.54M	136.34M
Total Debt	630.91M	639.64M	682.76M	670.17M	624.74M	354.58M
Total Liabilities	986.85M	967.18M	930.40M	996.01M	982.73M	608.37M
Stockholders Equity	444.47M	474.85M	505.69M	627.04M	755.55M	574.45M
Cash Flow
Free Cash Flow	88.02M	108.99M	681.00K	-67.39M	-82.57M	-91.21M
Operating Cash Flow	118.14M	132.48M	58.56M	18.74M	14.49M	-10.83M
Investing Cash Flow	-30.62M	-25.23M	-44.59M	-36.58M	-163.93M	-44.11M
Financing Cash Flow	-53.70M	-71.48M	-26.91M	-86.64M	235.00M	142.67M

Cresco Labs Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: 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 1.23 is below the 20-day moving average (MA) of 1.50, below the 50-day MA of 1.62, and above the 200-day MA of 1.20, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 29.57 is Positive, neither overbought nor oversold. The STOCH value of 7.14 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRON	65 Neutral	C$1.28B	24.87	3.34%	―	22.20%	―
GTII	62 Neutral	$1.75B	28.67	2.42%	―	6.18%	-28.69%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TRUL	48 Neutral	C$1.26B	―	-9.95%	―	4.27%	3.41%
CL	45 Neutral	C$440.47M	―	-11.79%	―	-6.48%	22.63%
CURA	44 Neutral	C$2.85B	―	-27.61%	―	-3.38%	-31.35%
VRNO	43 Neutral	$2.17B	―	-33.01%	―	-4.58%	-141.91%

Cresco Labs Corporate Events

Cresco Labs Enters EU Market with German Launch

Cresco Labs has announced its entry into the European Union market with the launch of its flagship flower brand in Germany. This strategic move marks the company’s first commercial venture in the EU, aiming to leverage Germany’s rapidly growing regulated cannabis market. By partnering with Blossom, an EU GMP-certified manufacturer in Portugal, Cresco Labs introduces three signature flower products available via prescription through licensed pharmacies in Germany. This expansion is part of Cresco’s broader growth strategy to explore international markets and gather insights for future growth decisions, potentially strengthening its industry positioning and offering new opportunities for stakeholders.

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 Reports Q3 Earnings and Growth Plans

Cresco Labs Inc. is a leading company in the cannabis industry, known for its branded cannabis products and Sunnyside dispensaries, operating across multiple markets in the United States. The company focuses on cultivation, production, and distribution of cannabis products, aiming to professionalize the industry through a consumer-packaged goods approach.

Cresco Labs’ Earnings Call: Stability and Strategic Growth

Cresco Labs’ Recent Earnings Call: Stability Amidst Challenges

Cresco Labs Reports Strong Q3 Results and Strategic Growth Initiatives

Cresco Labs reported strong financial results for the third quarter of 2025, with a revenue of $165 million and an adjusted EBITDA of $40 million. The company successfully refinanced its debt, strengthening its balance sheet and extending debt maturity to 2030. Cresco Labs is expanding its operations with new dispensaries in Ohio, entering the Kentucky market, and planning a product launch in Germany, positioning itself for future growth and market leadership.

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 to Announce Q3 2025 Financial Results

Cresco Labs announced it will release its third-quarter 2025 financial results on November 5, 2025. The company will host a conference call and webcast to discuss the results and provide business highlights, reflecting its ongoing efforts to strengthen its market position and engage with stakeholders.

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 Announces Shareholder Meeting Results and Strategic Initiatives

Cresco Labs announced the results of its annual general and special meeting of shareholders, where seven directors were elected, and Baker Tilly US, LLP was appointed as the auditor for the upcoming year. Shareholders also approved the company’s Award Exchange Program, allowing employees to exchange underwater options for full value awards, aligning pay with performance. These decisions, approved by at least 96% of votes, aim to strengthen Cresco Labs’ operational and strategic positioning in the cannabis industry.

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 Ohio Presence with New Sunnyside Dispensary

Cresco Labs has opened its sixth dispensary in Ohio, named Sunnyside, located in Proctorville, marking its 71st location nationwide. This expansion strengthens Cresco Labs’ market leadership in Ohio, where it holds the top retail market share and third in branded product share. The new dispensary is expected to contribute to local economic growth through job creation and increased revenue, which will be used to improve community infrastructure.

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.