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We are a vertically integrated, multi-state cannabis operator engaged in retail, distribution, cultivation, and processing operations in both medical and adult-use markets. We are focused on building a diverse portfolio of cannabis assets through opportunistic investments and pursuing application opportunities in attractive limited license jurisdictions.
Operating margin is thin at 1.85%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue growth slowed to 2.1%, essentially flat. Margins also contracted 2.4pp. This is a business that needs a catalyst.
Free cash flow declined 90% versus the prior year, cash generation momentum has weakened. Net debt of $269M represents 164.7x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
$265M
▲ +2.1% YoY
Net Income (TTM)
-$71M
▼ -40.6% YoY
Op. Margin
3.13%
▼ -2.4pp YoY
ROIC
2.31%
▼ -1.7pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$4M
▼ -90.3% YoY
Op. Cash Flow (TTM)
$19M
▼ -17.8% YoY
Net Debt
$262M
Cash & Equiv.
$40M
5Y CAGR: +26.6%
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