💸 The Tape

For the full year 2024, Cresco Labs recorded revenue of $724 million, reflecting a 6% decline compared to the previous year. Despite this reduction, the company maintained its adjusted gross profit at levels consistent with 2023, demonstrating operational resilience. A notable achievement was the 15% improvement in adjusted EBITDA, which reached $200 million, bolstered by a $26 million increase from the prior year. Operating cash flow also saw significant enhancement, rising by $74 million to $132 million. Capital expenditures for the year totaled $20 million, while the company reduced its debt by retiring $40 million of its 2026 note in the fourth quarter.

In Q4 2024, Cresco Labs reported revenue of $176 million, with retail revenue remaining stable sequentially. However, the adjusted gross margin dipped to approximately 50%, down from the prior quarter, and adjusted selling, general, and administrative expenses (SG&A) decreased by 1% year-over-year to $54 million. These figures underscore the company’s efforts to optimize costs amid market challenges.

Cresco Labs solidified its market leadership, retaining the number one share in key states such as Illinois, Pennsylvania, and Massachusetts, while achieving growth in Ohio. The company is also pursuing strategic expansion into emerging markets like Kentucky, which offers a supportive regulatory environment. Its retail operations outperformed industry benchmarks, with Sunnyside dispensaries proving 30% more productive than the average store in their markets.

Nevertheless, Cresco Labs faced headwinds in 2024. Price compression in core markets, particularly Illinois and Pennsylvania, constrained revenue growth despite rising demand in Q4. Wholesale revenue declined sequentially due to these pricing pressures and supply constraints, impacting margins. The company anticipates near-term margin pressure as it scales production capacity in key states and has adopted a cautious approach by limiting sales to customers with potential accounts receivable risks. Looking ahead, Cresco Labs expects ongoing pricing challenges and market fragmentation to persist, particularly in Illinois.

In summary, while Cresco Labs demonstrated financial discipline and market strength in 2024, it navigates a complex landscape marked by pricing pressures and operational adjustments, positioning itself for long-term growth in an evolving industry.

📈 Dog Walkers.

Tilray Medical Is Live In Germany

What’s Going On Here: Rubicon Organics Inc., a distinguished Canadian producer of premium organic certified cannabis, has proudly announced its inaugural international shipment of high-quality dried flower to Poland. This significant achievement marks the company’s entry into the global market. With Poland’s 90,000 medical cannabis patients and the planned acquisition of a facility in Hope, BC, adding 4,500 kilograms of annual production capacity, Rubicon is strategically positioned to address rising international demand while meeting Canada’s needs. CEO Margaret Brodie emphasized this milestone as a key step in expanding the company’s premium offerings worldwide.

Why Should You Care: While Rubicon dominates the premium market at home they are now starting to develop the international channel for the business. International sells at a premium to domestic so this is a trend that is surely going in the right direction for the LP.

Ascend Reports Growth?

Whats Going On Here: On March 12, 2025, Ascend Wellness Holdings, Inc. (CSE: AAWH-U.CN, OTCQX: AAWH), a prominent multi-state cannabis operator, released its financial results for the fourth quarter and full year of 2024. The company reported a full-year revenue increase of 8.3%, reaching a notable milestone despite a slight decline in Q4 performance. This growth underscores Ascend’s resilience in a competitive market. The earnings, exceeding expectations, reflect strategic expansions and operational efficiency across its seven-state footprint.

Why Should You Care: Growth is scarce and Ascend’s wholesale business while coming in at a significantly lower margin that retail is a fast growing segment of the business.

🗞️ The News

📺 YouTube

Ohio, Virginia, and Pennsylvania: Jushi’s Growth Opportunity | Trade to Black

What we will cover:

✅ On our latest Trade To Black podcast, host Shadd Dales will welcome back Jushi Holdings (OTCQX: JUSHF) CEO Jim Cacioppo to get a better understanding of why the cannabis company has upside potential and the key growth states they’re focusing on that present those opportunities.

Jushi’s Growth & Expansion Strategy: Focus on Ohio, Pennsylvania & Virginia

Jushi continues its impressive expansion while optimizing operations. The company has streamlined its workforce, maintaining efficiency with 1,150 to 1,250 employees while growing to 40 retail locations.

Key Growth States: • Pennsylvania: Jushi’s largest market with 18 stores, poised for even greater potential if adult-use legalization advances. • Virginia: Strategic investments in high-traffic locations, anticipating adult-use sales by 2025/2026 in premium markets. • Ohio: Expansion into 7-8 stores, overcoming regulatory hurdles while building cultivation and processing capabilities.

Financial Strength & Strategy: •Paid down $20M in debt, reinforcing financial health. •Generated $21.6M in cash flow from operations in 2023. •Implemented a “seven to seven” retail strategy, enhancing customer access.