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Cresco Labs (CL) investor relations material
Cresco Labs Q2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Q2 2025 revenue reached $164M, with strong brand and retail performance offsetting price compression and maintaining leading market share in key states.
Adjusted EBITDA was $41M (25.0% margin), supported by operational discipline and efficiency gains.
Net loss was $14M, including $9M in non-cash impairment charges related to California assets held for sale.
Signed a commitment letter to refinance $325M in debt, reducing facility size by 10% and extending maturity to 2030.
Strategic focus included exiting California, reinforcing the balance sheet, and preparing for industry consolidation.
Financial highlights
Q2 2025 revenue was $164M, a 1.3% sequential decline, mainly due to price compression in Illinois retail.
Adjusted gross profit was $83M (50.6% margin), and adjusted EBITDA was $41M (25.0% margin).
Net loss for Q2 2025 was $14M, improved from a $51.2M loss in Q2 2024.
Free cash flow for Q2 2025 was negative $3.8M, reflecting capital investments.
Cash and cash equivalents at quarter end were $147M.
Outlook and guidance
Q3 revenue expected to remain in line with Q2, with increased cultivation in Illinois offsetting price compression.
Margin drag anticipated in Q3 and Q4 due to lower yields from new cultivation capacity; focus remains on operational efficiencies.
Management expects to pursue M&A opportunities in productive states, focusing on sustainable growth.
Continued emphasis on profitability, cash generation, and redeploying capital for higher returns.
New dispensary openings in Ohio and expanded production in Pennsylvania expected to support future revenue growth.
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