Cresco Labs Reports Q1 Revenue of $166M, Net Loss of $15M

Cresco Labs reported Q1 revenue of $166 million and a net loss of $15 million. The company is an integrated multi-state cannabis operator in the US, licensed to cultivate, manufacture, and sell retail and medical cannabis products. Its portfolio consists of over 400 products, sold in over 1,600 dispensaries nationwide.

Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) (FSE: 6CQ) reported its financial results for the first quarter ended March 31, 2025, with revenue of $166 million and a net loss of $15 million. The company, an integrated multi-state cannabis operator in the US, cultivates, manufactures, and sells retail and medical cannabis products. Its portfolio includes over 400 products sold in over 1,600 dispensaries nationwide.

Key highlights from the Q1 2025 financial results include:

- Revenue: The company generated $166 million in revenue during the first quarter, reflecting its successful strategy to reduce accounts receivable exposure by limiting sales to wholesale accounts with credit risk [1].
- Operating Cash Flow: Cresco Labs reported an operating cash flow of $30 million and a Free Cash Flow of $25 million, indicating strong liquidity [1].
- Gross Profit: The company achieved a gross profit of $79 million and an Adjusted Gross Profit of $82 million, with an Adjusted Gross Margin of 49% of revenue [1].
- SG&A: Selling, general, and administrative expenses (SG&A) amounted to $58 million, or 35% of revenue [1].
- Adjusted EBITDA: Cresco Labs reported an Adjusted EBITDA of $36 million and an Adjusted EBITDA Margin of 22% [1].
- Net Loss: The company incurred a net loss of $15 million during the first quarter [1].

Charlie Bachtell, Cresco Labs CEO and co-founder, commented on the company's performance, stating, "We entered 2025 with the flexibility and financial strength needed to navigate market volatility, complete our debt refinancing, and remain both strategic and patient as we invest thoughtfully for long-term growth." He added, "By staying disciplined and thoughtful in how we deploy capital, we’re positioning Cresco Labs to drive margin expansion, gain market share, and invest in sustainable growth when the right opportunities arise" [1].

Cresco Labs' balance sheet as of March 31, 2025, shows current assets of $311 million, including cash, cash equivalents, and restricted cash of $159 million. The company had senior secured term loan debt of $353 million and a mortgage loan of $18 million. Total shares on a fully converted basis to Subordinate Voting Shares were 484,592,240 as of March 31, 2025 [1].

The company expects to file its unaudited condensed interim consolidated financial statements for the quarter ended March 31, 2025, on SEDAR+ and EDGAR on or about May 30, 2025. The financial information reported in this press release is based on unaudited management prepared financial statements and may be subject to change [1].

References:
[1] https://finance.yahoo.com/news/cresco-labs-continues-track-record-103000260.html