Acreage Revenue Ticks Down in Q3 Despite Northeast Sales Lift

Connecticut and New Jersey buoyed the period's balance sheet.

Acreage Holdings Inc. (CSE: ACRG.A.U, ACRG.B.U) (OTCQX: ACRHF, ACRDF) reported its third-quarter financial results, revealing a mixed performance on a revenue dip.

The company, which has been preparing to be absorbed by Canopy USA, the American arm of Canadian producer Canopy Growth, reported a slight decline in consolidated revenue, marking $56.5 million, an 8% fall from the previous year.

Acreage’s gross margin stood at 38%, a figure that would rise to 41% excluding non-cash inventory adjustments. However, the company faced a net loss of $7.9 million during the quarter, which was still better than the $25 million net loss in the same period last year.

Overall, the company saw a big rise in sales in Connecticut, with a year-over-year growth of 27%. The Botanist Danbury, one of its stores in Connecticut, recorded a 64% sales increase. Similarly, in New Jersey, the company experienced a 34% rise in sales compared to the same period last year, signaling strong market performance in these states.

“The playbook we have created from our experiences launching adult-use sales in Connecticut and New Jersey will benefit us greatly as our other core markets begin to adopt adult-use regulations,” CEO Dennis Curran, , who took the reins in July after a C-suite shuffle, said in a statement.

“With the adult-use market finally beginning to open in New York, and the recent vote for adult-use legalization in Ohio, we are readying our operations for increased output and innovation to continue differentiating our offering in anticipation of the long-term growth potential these markets offer.

Strategic initiatives marked the quarter for Acreage, with the company making headway in its expansion and product diversification efforts. That included starting construction on a new dispensary in Connecticut and nearing completion of a an infrastructure project in New Jersey. The company also introduced its Superflux brand in New Jersey and new product launches in New York and Illinois.

The year-over-year revenue decrease was primarily attributed to market price compression, though partially offset by revenue growth in New Jersey and Connecticut. Acreage also achieved a notable 37% reduction in total operating expenses, mainly due to lower general and administrative costs.

Adam Jackson

Adam Jackson writes about the cannabis industry for the Green Market Report. He previously covered the Missouri Statehouse for the Columbia Missourian and has written for the Missouri Independent. He most recently covered retail, restaurants and other consumer companies for Bloomberg Business News. You can find him on Twitter at @adam_sjackson and email him at

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