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The Company has vertically-integrated licensed operations in Pennsylvania, New Jersey, Maryland and California. In addition, the Company has retail operations in Ohio and Ontario, Canada with a majority-owned dispensary in Toronto, Ontario, Canada.
19.22% operating margin is respectable but not wide. ROIC at 10.11%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue declined 2.8% YoY. The question is whether this is cyclical or a structural shift.
Free cash flow declined 58% versus the prior year, cash generation momentum has weakened. Net debt of $218M represents 16.9x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
$262M
▼ -2.8% YoY
Net Income (TTM)
-$77M
▼ -11.9% YoY
Op. Margin
18.97%
▲ +2.3pp YoY
ROIC
11.08%
▲ +3.4pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$15M
▼ -58.5% YoY
Op. Cash Flow (TTM)
$22M
▼ -43.3% YoY
Net Debt
$211M
Cash & Equiv.
$39M
5Y CAGR: +14.5%
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