That revenue eked past the average analyst estimates per Yahoo Finance for expectations by more than $1 million. Revenue from retail sales increased by $3 million from the last quarter, driven by increased traffic and volume but offset by pricing pressure. Retail sales constituted 96% of the revenue.
However, the company’s top line continued to contract year-over-year, reflecting declines of 10% over the year and 1% from the prior quarter.
“The demand for legal cannabis remains strong, and Trulieve sells the highest volume of branded product through branded retail in the U.S.,” CEO Kim Rivers said in a statement. “Our focused strategy, scaled operations, and leading retail position provide distinct competitive advantages.”
The company reported a net loss in the quarter of $403.8 million. The company’s reported net loss expanded from $22 million in the previous year’s quarter. However, the adjusted net loss, which excludes specific charges and impairments, was $15 million. The loss from operations was $291 million.
Trulieve recorded a $307.6 million goodwill impairment for the single reporting unit during the quarter. The company partially attributed the impairment to a reduced number of custodians servicing cannabis equity holdings and negative investor sentiment due to lack of progress on federal reform.
Also during the quarter, Trulieve exited California retail assets and commenced winding down operations in Massachusetts. The company’s cash and equivalents stood at $152.4 million, compared to $207.2 million at the end of 2022.
During the quarter, the company sold 11.6 million units of branded products, up 9% sequentially. Trulieve’s Maryland dispensaries saw a 200% increase in traffic in July, coinciding with the launch of adult-use sales.
Trulieve’s operations continue to grow, with a current count of 186 retail dispensaries and more than 4 million square feet of cultivation and processing capacity in the U.S., an 11% increase year-over-year.
“We are on track to exit this year as a leaner, stronger organization, ready to meet the opportunities ahead,” Rivers added.
The company achieved a GAAP gross margin of 50% with a gross profit of $142 million and managed to reduce SG&A expenses by $4 million to $96 million.