Cresco Labs Reports Q3 2025 Financial Results

CHICAGO – Cresco Labs, a major player in branded Cannabis products and the Sunnyside retail chain, announced third-quarter results showing revenue of $165 million for the period ended September 30. The figure marked a modest sequential increase from the prior quarter, even as the company absorbed costs from a recent debt overhaul.

Operating cash flow came in at $6 million, with gross profit reaching $79 million. On an adjusted basis, gross profit edged up to $80 million, yielding a margin of 48.8%. Selling, general, and administrative expenses totaled $52 million, or 31.3% of revenue. The bottom line reflected a net loss of $22 million, driven largely by a $16 million charge tied to extinguishing older debt and $2 million in noncash impairments on California assets now slated for sale. Adjusted EBITDA stood at $40 million, for a margin of 24.1%.

Cresco maintained its top market share in several high-volume states, according to internal metrics, underscoring its wholesale and retail strengths amid uneven industry demand. The results come as MSOs navigate persistent regulatory hurdles and pricing pressures in mature markets like Illinois and Pennsylvania.

In a refinancing completed August 13, Cresco swapped out its previous $360 million senior secured term loan for a $325 million facility carrying a 12.5% interest rate and a 2030 maturity. The move, funded partly by cash reserves, trimmed overall debt and pushed out repayment deadlines. As of quarter-end, the company held $79 million in cash, cash equivalents and restricted cash within total current assets of $243 million. Long-term debt included the new term loan at $309 million net and a $18 million mortgage.

Charlie Bachtell, Cresco’s co-founder and CEO, framed the quarter as a period of steady execution. “We strengthened our balance sheet through the refinancing while holding ground in core markets,” he said in a statement. Bachtell highlighted upcoming moves, including new Sunnyside stores in Ohio, a push into Kentucky and a product debut in Germany, as pathways to expand beyond U.S. borders. “Scale and operational discipline will separate winners from the pack in this consolidating sector,” he added.

The balance sheet snapshot paints a company with breathing room. Fully diluted shares totaled nearly 491 million, providing sufficient liquidity to fund near-term priorities without posing immediate risks. Still, the net loss serves as a reminder of how one-time hits can mask underlying cash generation in a capital-intensive business.

Cresco’s results signal resilience in a fragmented market where top-tier operators are consolidating power. With federal reform talks simmering and international footholds emerging, the real test will be converting market dominance into sustained free cash flow. Investors may eye the next quarters for signs that these bets pay off without straining the newly fortified debt pile.