Earnings season was in full stride this week as some of the biggest cannabis companies reported their numbers. Unfortunately, record revenue reports didn’t push cannabis stock prices much higher.
Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) announced its revenue rose 78% to $215.1 million. Trulieve delivered a net income of $40.9 million, an increase of 116% over last year’s $18.9 million and a sequential increase of 36%.
Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF) reported its total revenue jumped by 85% to $221.9 million and beat the average analyst estimate per Yahoo Finance of $205 million. Net income for the second quarter was $22.1 million.
Columbia Care Inc. (CSE: CCHW) (OTCQX: CCHWF) reported revenue grew 232% to $109.7 million. This was a sequential increase of 19% and in line with the average analyst estimate from Yahoo Finance for revenue of $109 million. The company reaffirmed its 2021 revenue guidance of $500 – $530 million and adjusted EBITDA guidance of $95 – $105 million.
Ascend Wellness Holdings, Inc. (CSE: AAWH.U) (OTCQX: AAWH) reported its total revenue of $97.5 million which increased 28.5% quarter-over-quarter and 236.2% year-over-year. In addition to the solid revenue gains, Ascend said it was increasing its full-year guidance for 2021 from a range of $320 million to $340 million to a range of $330 million to $350 million. This revised range represents growth of approximately 130% to 145% year-over-year.
Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) reported its revenue in the second quarter reached $312 million, increasing 20% sequentially and 166% YoY. The company’s net losses were trimmed from $17.2 million in the first quarter to just $7.2 million in the second quarter.
Cannabis online marketplace company Leafly Holdings Inc. and the SPAC (Merida Merger Corp. I (NASDAQ: MCMJ) sponsored by Merida Capital Holdings have signed a definitive agreement for a business combination. When the transaction is complete, Merida will adopt the Leafly name, and its common stock is expected to be listed on the NASDAQ under the ticker symbol LFLY. The combined company’s transaction values at an implied, fully diluted enterprise value of approximately $385 million and equity value of approximately $532 million.
And finally, Cannabis industry folks are hopeful that the resignation of Governor Andrew Cuomo this week will mean legalization efforts will get back on track. The Governor often signaled he was in favor of full legalization, but often behind the scenes, he seemed to slow the process. While the incoming governor Lieutenant Governor Kathy Hochul hasn’t signaled whether it will be a key issue for her, many are feeling positive that the April 2022 goal may be back in play. She does come from the more conservative area of the state, but she is also a pragmatic politician and one known for getting things done.