Cresco Labs Reports: Financial Results for Q4 and Full Year ending December 31, 2024

LOS ANGELES- Cresco Labs Inc., a prominent vertically integrated cannabis company, has announced its financial results for the fourth quarter and full year ending December 31, 2024. The company reported a record operating cash flow of $132 million for the year, marking a 126% increase from the prior year. ​

Full-Year 2024 Financial Highlights:

• Revenue: Totaled $724 million, a 6% decrease from the previous year’s $770 million. ​

• Gross Profit: Reported at $364 million, with an adjusted gross profit of $374 million, achieving an adjusted gross margin of 52%, up 270 basis points year-over-year. ​

• Selling, General, and Administrative Expenses (SG&A): Amounted to $221 million. Adjusted SG&A was reduced by 12% year-over-year to $212 million, representing 29% of revenue. ​

• Net Loss: Stood at $60 million, including one-time, non-cash charges of $66 million related to the company’s updated 280E tax position. ​

• Adjusted EBITDA: Reached $200 million, a 15% increase from the prior year, with an adjusted EBITDA margin of 28%, improving by nearly 510 basis points year-over-year. ​

Fourth Quarter 2024 Highlights:

• Revenue: Recorded at $176 million, down from $179 million in the previous quarter and $188 million in the same period last year. ​

• Operating Cash Flow: Achieved $29 million, contributing to a free cash flow of $27 million for the quarter.

• Net Income: Reported at $0.4 million, an improvement over the third quarter’s net loss of $7.6 million but lower than the $4.8 million net income in the fourth quarter of the previous year. ​

CEO and co-founder Charlie Bachtell highlighted the company’s disciplined approach in 2024, focusing on streamlining operations and prioritizing profitability, which led to the record free cash flow. He emphasized plans for 2025 to strategically deploy capital for growth and maximize returns, maintaining a straightforward approach: executing at high levels, generating cash, and reinvesting in high-return opportunities. ​

Market Position and Expansion:

Cresco Labs retained the number one market share position in Illinois, Pennsylvania, and Massachusetts throughout 2024. The company is also expanding into Kentucky’s medical cannabis market, having secured one of only two Tier 3 cultivation licenses, allowing up to 25,000 square feet of canopy. This strategic move positions Cresco to efficiently scale operations and serve patients promptly in the emerging market.

As of December 31, 2024, Cresco Labs reported current assets totaling $294 million, including cash, cash equivalents, and restricted cash of $141 million. The company had senior secured term loan debt, net of discount and issuance costs, of $352 million and a mortgage loan, net of discount and issuance costs, of $18 million. ​