Cresco Labs (CL) AI Stock Analysis

• Market Cap: $866.25M
• Dividend Yield: N/A
• Average Volume (3M): 409.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.51
• Revenue Growth: -5.65%
• EPS Growth: 73.45%
• Country: CA
• Employees: 2,900
• Sector: Healthcare
• Sector Strength: 47
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.06
• Shares Outstanding: 338,504,000
• 10 Day Avg. Volume: 422,686
• 30 Day Avg. Volume: 409,000
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 1.15
• Enterprise Value/Gross Profit: 2.33
• Enterprise Value/Ebitda: 5.80
• 1Y Price Target: $1.99
• Price Target Upside: -3.20% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 55 Neutral
• Price Target: C$1.50 ▼(-27.18% Downside)

Cresco Labs' overall stock score is primarily impacted by its financial performance challenges, including declining revenues and high leverage. Technical analysis shows some positive momentum, but valuation concerns persist due to negative profitability. The earnings call highlighted strategic initiatives and operational strengths, but ongoing market challenges and price compression remain significant risks.

Positive Factors

Cash Flow

Cresco generated positive operating cash flow of $30.5M in the quarter and finished the period with its highest cash balance in three years.

Financial Performance

Cresco Labs reported better than expected gross margins and cost containment, delivering EBITDA above forecast.

Growth Prospects

Cresco’s vertically integrated operations in markets such as Ohio, Pennsylvania, and Florida are expected to drive growth into 2025 and beyond alongside new markets like Kentucky.

Negative Factors

Debt

The Company finished the period with a senior secured loan of $352M, net of discounts and issuance.

Revenue Decline

Revenue of $163.6M was down 1.3% sequentially and down 11.2% year-over-year.

Revenue Impact

Management cited the Illinois seed to sale system conversion will cause revenues to decrease slightly.

Cresco Labs Business Overview & Revenue Model

Company Description

Cresco Labs (CL) is a prominent player in the cannabis industry, primarily focused on the cultivation, manufacturing, and distribution of cannabis products across the United States. The company operates in several key sectors, including retail, wholesale, and product innovation, offering a wide range of products such as flower, edibles, oils, and topicals through its various branded lines. Cresco Labs aims to enhance the cannabis experience for consumers while promoting responsible use and compliance with regulatory standards.

How the Company Makes Money

Cresco Labs generates revenue through multiple streams, primarily from the sale of cannabis products in both retail and wholesale markets. The company operates a growing number of dispensaries across states where cannabis is legal, allowing it to sell products directly to consumers. Additionally, Cresco Labs engages in wholesale distribution, supplying its products to other dispensaries and retailers. Key revenue streams include the sale of dried flower, concentrates, edibles, and branded merchandise. The company also benefits from partnerships with local operators and brands, which can enhance its market presence and distribution capabilities. Furthermore, Cresco Labs invests in product innovation and branding, creating a portfolio of recognized products that can command higher price points, thereby contributing to its overall profitability.

Cresco Labs Financial Statement Overview

Summary

Cresco Labs is showing signs of recovery with improved margins and cash flows, despite revenue challenges. Positive cash flow and operational improvements are promising, but high leverage and declining equity remain concerns.

Income Statement

Cresco Labs has experienced a decline in total revenue over the past two years with a revenue decrease from $842.7M in 2022 to $724.3M in 2024. Despite having a strong gross profit margin of 50.3% in 2024, the company faces challenges with sustained net losses, though the net loss has decreased from -$175.5M in 2023 to -$74.4M in 2024. EBIT and EBITDA margins have shown improvement, indicating a potential turnaround in operational efficiency.

Balance Sheet

The debt-to-equity ratio stands at 1.35 in 2024, reflecting a moderate level of leverage. The equity ratio remains relatively stable at 35.0%, indicating a balanced approach toward asset financing. However, the decline in stockholders' equity from $505.7M in 2023 to $474.9M in 2024 suggests challenges in preserving equity value. Return on equity has improved as net losses have narrowed.

Cash Flow

Cresco Labs shows an improvement in operating cash flow, increasing from $58.6M in 2023 to $132.5M in 2024, which is a positive sign of better cash management. Free cash flow has also turned positive, reaching $109.0M in 2024, a significant improvement from $0.7M in 2023. This is indicative of stronger operational performance and better capital expenditure management.

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: Positive
• Last Price: 2.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CL, the sentiment is Positive. The current price of 2.06 is above the 20-day moving average (MA) of 1.41, above the 50-day MA of 1.02, and above the 200-day MA of 1.15, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 77.94 is Negative, neither overbought nor oversold. The STOCH value of 94.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CL.

Cresco Labs Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CL	55 Neutral	$866.25M	―	-10.02%	―	-5.65%	73.45%
Sector *	51 Neutral	$7.81B	-0.22	-40.01%	2.29%	21.48%	-2.11%
CRON	―	$980.86M	53.89	1.73%	―	―	―
CURLF	―	$2.43B	―	-24.93%	―	―	―
GTBIF	―	$2.07B	73.42	1.63%	―	―	―
TCNNF	―	$1.71B	―	-12.60%	―	―	―
VRNOF	―	$1.57B	―	-32.20%	―	―	―

Cresco Labs Corporate Events

Cresco Labs Secures $325 Million Refinancing to Boost Growth

Cresco Labs has successfully closed a $325 million senior secured term loan refinancing, extending the maturity to 2030 and strengthening its balance sheet. This move reduces the company’s total debt and provides flexibility for prepayment, positioning Cresco Labs for future growth and reducing near-term refinancing risks. The transaction reflects the company’s disciplined capital management strategy and supports its ongoing growth plans.

The most recent analyst rating on (TSE:CL) stock is a Buy with a C$2.80 price target. To see the full list of analyst forecasts on Cresco Labs stock, see the TSE:CL Stock Forecast page.

Cresco Labs Strengthens Financial Position with Solid Q2 Results and Debt Refinancing

Cresco Labs reported solid financial performance in Q2 2025, with a revenue of $164 million and a net loss of $14 million due to non-cash impairment charges. The company strengthened its financial position by securing a $325 million term loan, enhancing its balance sheet and providing financial flexibility for future growth opportunities. As the cannabis industry undergoes consolidation, Cresco Labs is positioned to capitalize on M&A opportunities with its proven operating model and clean capital structure.

The most recent analyst rating on (TSE:CL) stock is a Buy with a C$4.00 price target. To see the full list of analyst forecasts on Cresco Labs stock, see the TSE:CL Stock Forecast page.

Cresco Labs Secures $325 Million Refinancing to Bolster Growth

Cresco Labs has announced commitments to refinance its senior secured credit facility, securing a new US$325 million term loan with a 12.5% interest rate, maturing in five years. This refinancing, which replaces an existing US$360 million facility, is a strategic move to enhance financial flexibility amid constrained capital access in the U.S. cannabis sector. The refinancing underscores Cresco Labs’ resilience and positions it to focus on growth initiatives without the immediate pressure of refinancing risk, thereby strengthening its market position.

The most recent analyst rating on (TSE:CL) stock is a Buy with a C$4.00 price target. To see the full list of analyst forecasts on Cresco Labs stock, see the TSE:CL Stock Forecast page.

Cresco Labs Secures New Refinancing to Bolster Growth

Cresco Labs has announced commitments to refinance its senior secured credit facility, securing a new US$325 million term loan with favorable terms. This move highlights the company’s resilience in a capital-constrained market, allowing it to reduce debt, enhance financial flexibility, and focus on growth initiatives across its core U.S. markets. The refinancing underscores Cresco Labs’ strong business model and positions it strategically within the cannabis industry.

The most recent analyst rating on (TSE:CL) stock is a Buy with a C$4.00 price target. To see the full list of analyst forecasts on Cresco Labs stock, see the TSE:CL Stock Forecast page.

Cresco Labs to Divest California Operations in Strategic Restructuring

Cresco Labs has announced a strategic restructuring plan that includes divesting its California operations to strengthen its balance sheet and focus on markets with higher margins and growth potential. The decision to exit California is driven by the state’s structural challenges and allows Cresco Labs to reallocate resources to core and emerging markets, enhancing shareholder value.

The most recent analyst rating on (TSE:CL) stock is a Buy with a C$4.00 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 Q2 2025 Financial Results

Cresco Labs announced it will release its second-quarter 2025 financial results on August 7, 2025. The company will host a conference call and webcast to discuss these results and provide key business highlights. This announcement is significant as it provides stakeholders with insights into the company’s financial health and strategic direction, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (TSE:CL) stock is a Buy with a C$4.00 price target. To see the full list of analyst forecasts on Cresco Labs stock, see the TSE:CL Stock Forecast page.

Cresco Labs Reports Strong Q1 2025 Financial Results and Strategic Growth Plans

Cresco Labs reported strong financial results for the first quarter of 2025, with a revenue of $166 million and an operating cash flow of $30 million. The company emphasized its strategic approach to reducing credit risk and maintaining financial flexibility, ending the quarter with a cash balance of $162 million, the highest in three years. Cresco Labs aims to drive margin expansion and sustainable growth by deploying capital thoughtfully, positioning itself to gain market share and enhance value for stakeholders.

The most recent analyst rating on (TSE:CL) stock is a Buy with a C$4.00 price target. To see the full list of analyst forecasts on Cresco Labs stock, see the TSE:CL Stock Forecast page.

Cresco Labs Updates Q1 2025 Earnings Release Date

Cresco Labs has announced the updated date for its first quarter 2025 earnings release, scheduled for May 30, 2025. The company has completed its financial review with no material changes and plans to discuss the results in a conference call on June 2, 2025. This announcement reflects Cresco Labs’ commitment to transparency and its strategic positioning in the cannabis market, potentially impacting stakeholders positively by reinforcing trust in its financial practices.

The most recent analyst rating on (TSE:CL) stock is a Buy with a C$4.00 price target. To see the full list of analyst forecasts on Cresco Labs stock, see the TSE:CL Stock Forecast page.

Cresco Labs Expands in Pennsylvania with New Sunnyside Dispensary

Cresco Labs has announced the opening of a new Sunnyside dispensary in Chippewa Township, Beaver Falls, Pennsylvania, reinforcing its strong market presence in the state. This expansion highlights Cresco Labs’ strategic focus on deepening its core market presence, particularly in Pennsylvania where it holds a leading position in branded market share. The new location aims to enhance patient service with high-quality products and a superior retail experience, potentially increasing operating leverage and strengthening its industry positioning.

The most recent analyst rating on (TSE:CL) stock is a Buy with a C$4.00 price target. To see the full list of analyst forecasts on Cresco Labs stock, see the TSE:CL Stock Forecast page.