"MariMed's Q4 2024 Earnings: A Deep Dive into the Cannabis Giant's Performance"

MariMed Inc. (CSE: MRMD) (OTCQX: MRMD) has just released its Q4 2024 earnings, and the results are nothing short of impressive. The cannabis industry is known for its volatility, but MariMed seems to have found a formula for consistent growth. Let's dive into the numbers and see what's driving this success.



First, let's look at the financial highlights. MariMed reported record revenues of $39.0 million for the quarter, up from $38.9 million in the same period last year. This might not seem like a huge jump, but when you consider the industry's overall performance, it's clear that MariMed is bucking the trend. The company's annual revenue for 2024 was $158.0 million, a 6.3% increase from 2023. This growth is even more impressive when you consider the challenges the cannabis industry has faced in recent years.

But it's not just about revenue. MariMed's adjusted EBITDA for the quarter was $5.9 million, up from $5.2 million in the same period last year. This is a key metric for investors, as it shows the company's ability to generate cash flow from its operations. The company's non-GAAP adjusted EBITDA margin for the year was 12%, down from 17% in 2023. While this decrease might raise some eyebrows, it's important to note that MariMed has been investing heavily in expansion and new markets, which can temporarily impact profitability.

Now, let's talk about what's driving this growth. MariMed CEO Jon Levine highlighted several key factors in the earnings call. First, the company's strong portfolio of brands, including Betty’s Eddies™ fruit chews, which is currently the top-selling edible in Massachusetts and Maryland. This brand strength has helped MariMed gain market share in all its core markets.

Second, MariMed has been expanding its revenue-generating assets. The company completed the build-out or expansion of 10 assets over the past two years, and these are expected to contribute fully to the company's financial performance in 2025. This includes a new cultivation facility in Mt. Vernon, Illinois, which commenced operations in October 2024.

Third, MariMed has been making strategic moves in key markets. The company announced the commencement of manufacturing operations in Missouri in October 2024 and began wholesale distribution of its branded products throughout the state in late December 2024. This is a significant move, as Missouri is one of the fastest-growing cannabis markets in the country.

Finally, MariMed has been consolidating its position in Delaware. The state approved the company as the owner of First State Compassion Center (FSCC), which is expected to support expanded market penetration as the state prepares for adult-use sales.

But it's not all sunshine and rainbows for MariMed. The company reported a GAAP net loss of $8.2 million for the quarter, down from $10.1 million in the same period last year. This is a reminder that the cannabis industry is still in its early stages, and companies are still figuring out how to turn a profit.

So, what does all this mean for investors? MariMed's strong financial performance and strategic initiatives suggest that the company is well-positioned for growth in 2025. However, investors should keep an eye on the company's profitability and its ability to navigate the challenges of the cannabis industry. As always, it's important to do your own research and make informed investment decisions.