Marimed (MRMD) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $38 million, flat year-over-year, with wholesale growth offsetting retail softness and seasonal factors.

• Wholesale revenue grew 16% year-over-year and now represents 44% of total revenue, up from 38% last year.

• Retail revenue declined 7% year-over-year, impacted by pricing pressures, competition in Illinois, and economic uncertainty.

• Strategic focus remains on expanding brand distribution, innovation, and entering new markets through M&A and licensing.

• Completed the acquisition of First State Compassion Center in Delaware on March 1, 2025, with results included from that date.

Financial highlights

• Adjusted gross margin for Q1 was 41.3%, down from 43.8% a year ago; GAAP gross margin was 40%.

• Net loss was $5.4 million, compared to $1.3 million loss last year; adjusted EBITDA was $2.6 million, down from $4.7 million.

• Cash and equivalents at quarter-end were $7.2 million, with $2.7 million in working capital.

• Operating expenses were $16 million (42% of revenue), up from $14.5 million (38% of revenue) last year, due to a one-time write-off.

• Retail revenue declined to $20.8 million from $22.3 million, while wholesale revenue increased to $16.8 million from $14.5 million.

Outlook and guidance

• Q2 revenue expected to increase by high single digits quarter-over-quarter, driven by a full quarter of FSC revenues and continued wholesale growth.

• Management anticipates continued wholesale growth, further brand distribution, and new revenue streams via M&A, licensing, and potential hemp market entry.

• Adult-use sales in Delaware expected to begin in 60–120 days, with the company well-positioned for market entry.