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StateHouse (STHZ) investor relations material

StateHouse Q2 2024 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2024 earnings summary29 Aug, 2024

Executive summary

  • Q2 2024 net revenue rose 10% year-over-year to $27.8 million, with gross margin at 50.8%.

  • Achieved positive net income of $0.2 million, reversing a net loss of $2.1 million in Q2 2023.

  • Adjusted EBITDA improved to $4.9 million from $0.9 million in Q2 2023, driven by cost-saving measures and new product launches.

  • 24 new products launched in the past year now account for 15% of 2024 year-to-date sales.

Financial highlights

  • Retail revenues were $13.5 million (48.5% of sales), branded wholesale/manufacturing $10.7 million (38.5%), and cultivation $3.6 million (12.9%).

  • Gross profit before biological asset adjustments was $14.1 million, up from $12.3 million in Q2 2023.

  • Consolidated adjusted gross margin increased to 50.8% from 48.6% year-over-year.

  • Cultivation revenue surged 203.5% year-over-year, driven by higher yields and premium product quality.

Outlook and guidance

  • Management expects to maintain momentum with continued focus on cost reduction and product innovation.

  • Plans to leverage expertise as California's cannabis market expands.

  • Board and management are developing a strategy to strengthen the balance sheet and negotiate debt restructuring.

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Frequently asked questions

StateHouse Holdings Inc., formerly Harborside Inc., engages in the cultivation, manufacture, distribution, wholesale, and retail of cannabis and cannabis products for the adult-use and medical markets in California. The company operates through Cannabis Operations; Real Estate Operations; and Ancillary Business Operations segments. The Cannabis Operations segment grows and distributes cannabis to dispensaries at wholesale prices with a retail store facility located in Oakland that provides a range of cannabis products for the adult-use and medical markets.

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