💸 The Tape

Green Thumb Industries (OTC: GTBIF) is the first of the five major MSO’s to announce their latest earnings, and they did not disappoint, delivering impressive financial results for Q4 and the full year 2024. Fourth-quarter revenue reached $294 million, marking a 5.8% year-over-year increase, while full-year revenue grew 7.8% to $1.1 billion.

Q4 highlights include a GAAP net income of $13 million ($0.05 per basic share), an Adjusted EBITDA of $98 million (33% of revenue), and a cash position of $172 million. The company also opened three new RISE Dispensaries in Florida, Minnesota, and Nevada.

For the full year 2024, achievements include a GAAP net income of $73 million ($0.31 per basic share), an Adjusted EBITDA of $371 million (33% of revenue), and $195 million in cash flow from operations. The company also expanded its retail presence to 101 locations nationwide.

Consumer packaged goods revenue grew 19.9% in Q4 and 15.9% for the year, fueled by continued growth in New Jersey, New York, and Ohio. Gross margin expanded by 240 basis points year-over-year in Q4 to 53.7%, thanks to operational efficiencies.

GTI's President Anthony Georgiadis expressed confidence in the company's strategy, emphasizing their focus on thoughtful capital allocation, operational excellence, superior product quality, and resonant brands. And why wouldn’t he?

The company ended the year with $171.7 million in cash and cash equivalents, having repurchased $43 million worth of shares in 2024 under a previously authorized buyback program. Total debt outstanding was $255 million as of December 31, 2024.

Final thought. Green Thumb Industries is built different.

In addition to Green Thumb Industries. Trulieve Cannabis Corp. (OTCQX: TCNNNF) announced financial results for Q4 and the full year 2024.

The company made $301 million in revenue for Q4, marking a 5% increase from the same period last year and surpassing their expectations. They achieved a gross margin of 62%, meaning they retained 62 cents of every dollar after covering production costs. This is a notable improvement from 54% in Q4 2023.

For the entire year, Trulieve generated $1.2 billion in revenue, with 95% coming from retail sales. Despite a net loss of $155 million, they managed an adjusted net loss of only $19 million, excluding one-time charges. The company also reported record cash flow from operations of $271 million, indicating a strong financial position.

Trulieve also recapped their impressive footprint expansion in 2024, adding 33 new dispensaries and bringing their total to 225 retail locations nationwide. They launched adult-use cannabis sales in three locations in Ohio and introduced a new line of THC beverages called "Onward."

In conclusion, 2025 will continue to show a widening gap between the top MSO’s and the rest of the cannabis industry.

📈 Dog Walkers.

Trulieve Appoints New President

What’s Going On Here: In addition to announcing their latest earnings, Trulieve has also announced the appointment of Jason Pernell as President, effective immediately.

Why? Pernell has over 20 years of experience as an entrepreneur and cannabis operator, having co-founded Trulieve in 2015 alongside Chairman and CEO Kim Rivers.

One of the main reasons for his appointment is to support Rivers as Trulieve continues to expand and perform strongly in key states, including Florida.

In his new role, Pernell will be tasked with driving the company's growth and maintaining market share in key states. With Amendment 3 failing in November 2024 and the regulatory uncertainty surrounding Florida, this has translated into increased competition, price compression, and financial strain on some companies that invested in the #yeson3 campaign. Expansion and execution will be key.

Despite Amendment 3 failing, it is worth noting that the Florida cannabis market produces close to 900,000 medical patients and is a $2 billion medical market.

Labelling Issues In Illinois?

What’s Going On Here: A group of cannabis companies, including The Cannabist Co. and Verano, is asking a federal judge to combine 10 lawsuits accusing them of mislabeling products in Illinois. They argue that since all the cases involve the same legal questions, it makes sense to have one judge handle them instead of eight.

The lawsuits focus on whether certain cannabis products were labeled correctly under Illinois law. Plaintiffs are pushing back, saying each case has unique details. A judge will decide soon whether to consolidate the cases, while companies continue looking into whether arbitration agreements could impact the lawsuits.

🗞️ The News

📺 YouTube

Coming Up @ 11am EST:

Exclusive Interview with Kim Rivers

What we will cover:

✅ Coming up today at 11am EST, Kim Rivers, CEO of Trulieve (OTCQX: TCNNF), will join us on our livestream. We will cover the following:

Highlight the company’s latest Q4 & 2024 earnings and takeaways from it.

Discuss their strategy for refinancing their debt. Will they look to pay it down, or will they aim to do a share buyback given the current lucrative share price?

Provide feedback concerning the Florida market and trends they’re seeing since Amendment 3 failed to pass. Are they seeing price compression? What is their strategy to maintain market share? Thoughts on Byron Donalds running for Governor and the implications it could have on Adult Use Cannabis in the state.

Share the latest news from Washington, D.C. involving the Trump administration and cannabis reform. What is Rivers hearing, some of the feedback she is receiving, and does she think cannabis rescheduling and SAFE Banking will happen under the new administration?

See you all at 11am EST!