After the market closed on Monday, Acreage Holdings, Inc. (OTC: ACRHF, ACRDF) reported its financial results for the second quarter of 2021 ending June 30, 2021. The unaudited results showed that consolidated revenue increased 63% to $44.2 million, versus the same period in 2020 and a sequential increase of 15% compared to the first quarter of 2020. This beat the Yahoo Finance average estimate for revenue of $34 million. The net loss attributable to Acreage in the second quarter of 2021 was $2.6 million, an improvement from the net loss attributable to Acreage of $37.2 million for the same period in 2020.
Adjusted EBITDA in the second quarter of 2021 was $8.1 million compared to a loss of $6.5 million in the same period in 2020. Adjusted EBITDA as a percentage of consolidated revenue was 18.3% for the second quarter of 2021. This marks the second consecutive quarter of positive adjusted EBITDA for the company and validates management’s refocused strategic plan.
“I am once again pleased with our financial performance in the second quarter as we reported our second consecutive quarter of positive Adjusted EBITDA*,” said Peter Caldini, Chief Executive Officer of Acreage. “Additionally, our revenue growth accelerated to 63% year over year, and our gross margin remained strong at 54.0%. On an operating basis, our team continues to be focused on both driving profitability and accelerating our growth in our core markets.”
Total operating expenses for the second quarter of 2021 fell 39% to $30.6 million from the corresponding period of fiscal 2020. Excluding equity-based compensation expenses, losses and write-downs and depreciation and amortization expenses, all of which are non-cash in nature, total operating expenses for the second quarter of 2021 decreased $3.6 million or 17% compared to the corresponding period of fiscal 2020.
The company ended the quarter with $37.8 million in cash and restricted cash. During the second quarter of 2021, the company closed on the previously announced sale of its Florida operations for total proceeds of $60 million. The cash provided by this sale, including the proceeds from the subsequent sale of notes receivable received from the buyer of the Florida operations as consideration, and together with restricted cash, were used to repay $44.1 million in debt during the quarter.