The Cannabist Co Holdings Reports Q2 2025 Financial and Operational Results

CHELMSFORD – The Cannabist Company Holdings Inc., a leading U.S. Cannabis cultivator, manufacturer, and retailer, released its financial and operational results for the second quarter of 2025, indicating ongoing efforts to streamline operations and strengthen its balance sheet.

For Q2 2025, the company reported revenue of $86.4 million, a 1% decline from $87.4 million in Q1 2025, primarily due to the sale of two California retail locations and persistent pricing pressures in the Cannabis sector. Gross profit fell to $17.2 million from $29.3 million in Q1, driven by inventory obsolescence in New York and a wholesale inventory reduction initiative across eight markets. Adjusted gross margin was 33%, down from 36% in Q1. Net loss widened significantly to $77.4 million from $32.2 million in Q1, largely due to impairment charges and non-operational expenses. However, adjusted EBITDA improved slightly to $8.5 million, with a 30-basis-point increase in adjusted EBITDA margin to 9.8%. Following divestitures in Florida, California, and Illinois, the company will retain 10 markets and maintain an adjusted EBITDA margin standing at 11.7%. The company ended the quarter with $15.5 million in cash, down from $18.9 million at the end of Q1.

The Cannabist Company made significant strides in optimizing its operational footprint. On April 17, 2025, it completed the sale of its remaining Medical Marijuana Treatment Center (MMTC) license in Florida for $5 million, with the sale of a Florida cultivation facility still pending. On May 29, 2025, the company finalized a debt restructuring plan, extending senior secured note maturities to December 2028, with potential extensions to 2029, enhancing financial flexibility. Additionally, the corporate restructuring, carried out during the quarter, is expected to generate $2 million in annual cost savings, adding to the $23 million in savings achieved in 2024.

Operationally, wholesale revenue grew 16% sequentially to $18.4 million, accounting for 21% of total revenue, up from 18% in Q1. The company launched adult-use sales at all three Delaware retail locations on August 1, 2025, and began adult-use sales at its third New Jersey location, Cannabist Mays Landing, in April. A new brand partnership with COAST Cannabis Co. introduced premium edibles in Maryland in June. The company also announced the sale of three Pennsylvania retail locations for $10 million, shifting to a wholesale model in that market to maintain exposure ahead of a potential adult-use transition. As of quarter-end, the company operated 53 retail locations, down from 55, and signed a management services agreement for its Balboa, California, manufacturing facility in preparation for its sale.

The company’s top revenue and adjusted EBITDA markets in Q2 were Virginia, New Jersey, Colorado, Ohio, and Maryland. As part of its strategic growth plan, Cannabist intends to expand its retail footprint with new locations in Virginia and a particular focus on the Ohio market, with three new stores planned for Q3 2025. Capital expenditures remained modest at $2 million, with projections of $2-3 million per quarter in 2025, primarily for new store openings. The company continues to refine its pricing architecture and rationalize SKUs to improve efficiency.

The Cannabist Company’s Q2 2025 results highlight a challenging financial environment marked by revenue declines and a significant net loss, tempered by modest improvements in adjusted EBITDA margin. The company’s focus on cost reduction, asset divestitures, and debt restructuring demonstrates a strategic effort to navigate industry headwinds, including pricing pressures and regulatory complexities. The shift to a wholesale model in Pennsylvania and the expansion of adult-use sales in Delaware signal adaptability, but the company’s negative equity position of $138.8 million and substantial debt burden of $464.4 million raise concerns about long-term sustainability. Investors will likely monitor the company’s ability to stabilize revenue and improve operational efficiency in its core markets. However, achieving sustainable profitability will require disciplined execution and favorable regulatory developments.