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We are a vertically integrated cultivator and provider of cannabis and cannabis-infused products in the States of Nevada and California, with retail cannabis operations in Illinois. In addition to these operational cannabis licenses, we hold a license and are developing operations in Florida.
The business is unprofitable at the operating level (-11.37% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue declined 11.2% YoY. Margins deteriorated 15.6pp alongside, both lines moving the wrong way.
ROIC dropped from 2.48% to -6.27%, capital efficiency is deteriorating. Negative free cash flow of -$21M. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (TTM)
$96M
▼ -11.2% YoY
Net Income (TTM)
-$70M
▼ -33.7% YoY
Op. Margin
-11.96%
▼ -15.6pp YoY
ROIC
-7.02%
▼ -8.8pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$14M
▼ -203.9% YoY
Op. Cash Flow (TTM)
-$9M
▼ -372.4% YoY
Net Debt
$59M
Cash & Equiv.
$6M
3Y CAGR: -0.4%
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