💸 The Tape

Glass House Shine Once Again

In a market where many are feeling the pinch, Glass House Brands Inc. seems to be feeling something else entirely—perhaps a contact high from their own success. Reporting their third-quarter 2024 financial results, the vertically integrated cannabis company didn't just break records; they rolled them up and smoked them.

Rolling in the Green

Net revenue bloomed to a staggering $63.8 million, marking a 32% increase from Q3 2023 and an 18% uptick from Q2 2024. It's as if their profits are growing as fast as their plants. Gross profit followed suit, hitting $33.4 million compared to $26.0 million the previous year.

Cultivation Costs Go Up in Smoke

One of the standout achievements was slashing the cost per equivalent dry pound of production to a record low of $103—a 13% decrease from last year. Speaking of harvests, they produced a whopping 232,295 pounds, up 128% year-over-year.

Retail Highs and Lows

Their retail and consumer packaged goods (CPG) segments weren't left in the weeds. Combined revenue increased 11% year-over-year to $16.0 million, outperforming their own guidance. The company's dispensaries outpaced the broader California market by almost 18 basis points. It seems their strategic pricing plan is working like a charm—or perhaps like a particularly potent strain.

The Allswell brand deserves a special shout-out. Climbing from the 21st to a top-three brand in unit sales in just 16 months, it's the kind of growth that gives new meaning to the term "sky-high."

A Few Seeds Among the Buds

Not everything was sunshine and rainbows—or should we say, hydroponics and LED grow lights. The average selling price per pound dipped to $229, below the anticipated $280 to $285. But when you're selling over 232,000 pounds, a little price fluctuation is just a breeze in the greenhouse.

General and administrative expenses decreased by 5% from last year, thanks in part to a reduction in bonus accruals. Looks like the only thing higher than their profits is their cost-cutting efficiency.

Lighting the Way Forward

Adjusted EBITDA reached a record $20.4 million, surpassing even the highest expectations. Operating cash flow was a robust $13.2 million, and the cash reserves swelled to $35.1 million by quarter-end. The company also paid down $1.9 million in principal on the WhiteHawk loan and managed to keep capex spending minimal—a fiscal discipline that would make even the most conservative banker nod in approval.

Final Puff

Co-Founder, Chairman, and CEO Kyle Kazan summed it up nicely: Glass House Brands is demonstrating an uncanny ability to grow high-quality cannabis at the lowest cost. Their strategic pricing initiatives are not just attracting customers but turning them into loyal fans.

Glass House Brands is showing that with the right mix of strategy, quality, and perhaps a bit of humor, you can achieve lofty heights. So, as they continue to cultivate both their plants and their profits, one thing is clear: Glass House Brands isn't just getting by—they're getting high... on success, of course.

📈 Dog Walkers

SNDL Reactivates Repurchase Program

SNDL Inc. is back at it again, renewing its share repurchase program like it's the sequel nobody asked for but everyone gets anyway. The board has approved another C$100 million to potentially buy back up to 13.2 million shares—about 5% of what's out there. Given that in the last program they aimed for 13.1 million shares but only managed to scoop up a modest 727,829, one might say they're setting ambitious goals. But hey, who's counting? This move gives them the flexibility to "opportunistically return value to shareholders," which is corporate speak for "we'll buy if we feel like it." It's like having a gym membership—you intend to use it, but sometimes you just admire it from afar.

Gold Flora Reports Q3

Gold Flora Corporation is blazing its own trail in the cannabis market, reporting Q3 2024 results that are as colorful as their product line. With total revenue hitting $32.6 million, they’re clearly growing, but don’t let the green numbers fool you—there’s a net quarterly loss of $18.9 million, proving that even high-flyers have their cloudy days. On the bright side, their gross profit stands strong at $13.5 million with a juicy 41% margin, and an adjusted gross profit soaring to $21.1 million (65% margin) after trimming the fat. Adjusted EBITDA dances into positive territory at $2.8 million, while cash used in operations is a lean $5.8 million. Cash reserves sit comfortably at $10.2 million, ensuring Gold Flora can keep rolling despite the financial haze. It’s a mixed bag, but hey, in the cannabis game, every puff has its price!

👾 Number Of The Day

$44.24 Average item price in Ohio.

🗞️ The News

SNDL Announces Renewal of Share Repurchase Program

SIR Royalty Income Fund Reports 2024 Third Quarter Financial Results

Gold Flora Reports Third Quarter 2024 Financial Results

4Front Ventures Reports Third Quarter 2024 Results

New State-Backed Project Will Create A Community History Of California’s Stewardship Of Marijuana Genetics

Trump’s Pick For Attorney General Has Vowed To ‘Go Easy On Marijuana’ If He Gets The Job

📺 YouTube

Canopy Growth CEO Discusses Latest Cannabis Earnings & Future Growth | Trade to Black

What we covered:

✅ David Klein, CEO of Canopy Growth (NASDAQ: CGC), joins us to discuss the latest earnings numbers for Q2 2025.

The cannabis company reported a 32% revenue increase for its popular ancillary brand, Storz & Bickel. Additionally, medical cannabis sales revenue grew 16% in Canada and 12% in international markets.

Net revenue was down 9% quarter-over-quarter, while margins improved across the board.

We’ll discuss all of this, plus find out what contributed to the softness in top-line growth, along with Klein’s main objectives for the company between now and his planned retirement in March 2025.