MariMed Reports Q2 2024 Earnings with Revenue Growth Amid Margin Pressures

LOS ANGELES- MariMed Inc., a Massachusetts-based multistate cannabis operator, reported its financial results for the second quarter of 2024, revealing strong revenue growth alongside increased expenses and margin pressures as the company continues to expand its operations.

The company achieved revenue of $40.4 million for the quarter ending June 30, marking an 11% increase from the $36.5 million reported in the same period of 2023. Despite this growth, MariMed’s net loss widened to $1.6 million, compared to a net loss of $935,000 in the previous year.

Gross margin declined to 42% from 45% in the prior-year quarter, a decrease attributed to ongoing expansion efforts. Operating expenses also rose, reaching $16 million, up from $12.8 million a year earlier.

MariMed’s CEO, Jon Levine, highlighted the strength of the company’s wholesale business and noted a 24% year-over-year increase in retail transactions. However, the expansion phase has put pressure on margins and cash flow.

During the quarter, MariMed completed acquisitions of dispensaries in Upper Marlboro, Maryland, and Casey, Illinois. Additionally, the company entered a partnership with two Boston music venues to promote its Nature’s Heritage cannabis brand.

After the close of the quarter, MariMed received a provisional dual-license for its dispensary in Tiffin, Ohio, and appointed Mario Pinho as the company’s new Chief Financial Officer, effective August 9.

MariMed reaffirmed its full-year 2024 financial guidance, projecting revenue growth of 5% to 7% and adjusted EBITDA growth of 0% to 2%. The company also anticipates $10 million in capital expenditures for the year.