- Cresco Labs (CSE:CL), a cannabis CPG mainstay, posted record free cash flow of US$114 million in fiscal 2024
- It closed out the year with a profitable Q4, earning US$0.4 million in net income
- Cresco Labs is a cannabis dispensary operator and consumer packaged goods (CPG) company
- Cresco Labs stock has given back 48.11 per cent year-over-year and 70.67 per cent since 2020
Cresco Labs (CSE:CL), a cannabis CPG mainstay, posted record free cash flow of US$114 million in fiscal 2024, ending December 31, opening the door to pursue new growth opportunities.
Fiscal 2024 highlights
- Revenue of US$724 million.
- Record operating cash flow of US$132 million and free cash flow of US$114 million.
- Gross profit of US$364 million, adjusted gross profit of US$374 million and an adjusted gross margin of 52 per cent of revenue, a 2.7 per cent improvement year-over-year (YoY).
- SG&A of US$221 million, reducing adjusted SG&A by 12 per cent YoY to US$212 million, or 29 per cent of revenue.
- Net loss of US$60 million, including one-time, non-cash charges of US$66 million related to Cresco’s expected benefits from its updated 280E position, as initially described Q2 2024.
- Adjusted EBITDA of US$200 million, up by 15 per cent YoY, with an adjusted EBITDA margin of 28 per cent, an over 5 per cent improvement YoY.
- Retained the no. 1 market share position in Illinois, Pennsylvania and Massachusetts for the full year, according to data from BDSA.
- Current assets of US$294 million, including cash, cash equivalents and restricted cash of $141 million, as of December 31, 2024.
- Senior secured term loan debt of US$352 million and a mortgage loan of US$18 million, both net of discount and issuance costs.
Q4 highlights
- Revenue of US$176 million.
- Operating cash flow of US$29 million.
- Free cash flow of US$27 million.
- Gross profit of US$84 million, with an adjusted gross profit of US$87 million at an adjusted gross margin of 50 per cent of revenue.
- SG&A of US$56 million or 32 per cent of revenue.
- Net income of US$0.4 million.
- Adjusted EBITDA of US$42 million at a margin of 24 per cent.
Leadership insights
“In 2024, the team executed with discipline—streamlining operations, prioritizing profitability and generating record free cash flow,” Charlie Bachtell, Cresco Labs’ co-founder and chief executive officer, said in a statement. “With US$132 million in operating cash flow, a leading brand position in our core markets and retail productivity that outperforms the industry, our foundation is stronger than ever. In 2025, we’re extending our focus to strategically deploy capital to create growth and maximize returns for the years ahead. It’s a straightforward approach: execute at the highest level, generate cash, reinvest in high-ROI opportunities and repeat.”
“Kentucky is our first of these new market expansions—a strategic addition backed by clear regulations,” Bachtell added. “As one of only two Tier-3 cultivators, we have up to 25,000 square feet of canopy, representing more than 20 per cent of the state’s total allocation. This allows us to scale efficiently, serve patients quickly and reinvest in our operations—just as we have in Illinois, Pennsylvania and Ohio. Congratulations to the Cresco team on a phenomenal 2024 and Let’s Go in 2025!”
About Cresco Labs
Cresco Labs is a cannabis consumer packaged goods (CPG) company. Its brand portfolio includes Cresco, High Supply, FloraCal, Good News, Wonder Wellness Co., Mindy’s and Remedi. The company also operates dispensaries under the Sunnyside brand.
Cresco Labs stock (CSE:CL) is up by 2.8 per cent trading at C$1.10 per share as of 10:04 am ET. The stock has given back 48.11 per cent year-over-year and 70.67 per cent since 2020.
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