MariMed Inc. Reports Financial Results for Q2 2023

LOS ANGELES– MariMed Inc., a multi-state operator in the cannabis industry, has unveiled its financial results for the second quarter ending June 30, 2023. Despite facing headwinds in the industry and consumer spending, the company’s performance across several important metrics remained stable or showed growth.

One significant indicator of stability is the Generally Accepted Accounting Principles (GAAP) gross margin, which held steady at 45% during the past quarter. This suggests that MariMed’s core business operations remained consistently profitable over the specified period. GAAP gross margin is a key financial metric that measures the percentage of revenue left after deducting the cost of goods sold (COGS) from total revenue, providing insight into the company’s efficiency in producing goods or services.

MariMed’s wholesale business continued to achieve impressive sales records on both monthly and quarterly bases. The company anticipates further growth in this segment following the commencement of adult-use sales in Maryland, which began on July 1st. The successful execution and support of increased demand in Maryland operations significantly contributed to this performance.

In terms of overall revenue, MariMed reported $36.5 million for Q2 2023, representing a 10.5% year-over-year rise compared to the corresponding quarter of 2022, during which the company generated $33.0 million.

The Adjusted EBITDA, a financial metric that excludes certain non-operational and non-cash expenses to provide a clearer view of a company’s operating performance, came in at $6.3 million for Q2 2023, compared to $8.9 million in the corresponding quarter of 2022. Despite the decline, it marked MariMed’s 14th consecutive quarter of positive adjusted EBITDA.

CEO Jon Levine expressed satisfaction with the quarter’s solid revenue growth. Notably, MariMed’s revenue accelerated both year-over-year and sequentially, surpassing industry benchmarks. Additionally, he highlighted the company’s ability to generate earnings from its core business operations for the 14th consecutive quarter.

Looking ahead, MariMed remains committed to its strategic growth plan and continues to operate premier facilities in the cannabis industry. The company’s financial guidance for the full year 2023 remains consistent with guidance provided in the first quarter, including revenue of at least $150 million, a gross margin approximately in line with the full year 2022 at around 48%, Non-GAAP Adjusted EBITDA between $32 million to $35 million, and capital expenditures of $30 million.

As of the publishing time, MariMed Inc. (MRMD) stock was down $0.0166 (4.34%) to $0.3661 on the OTC Exchange. Despite the stock’s performance, MariMed’s consistent financial growth and commitment to its strategic plan position the company to navigate the challenges and opportunities in the evolving cannabis industry.