Marimed (MRMD) Q4 2024 earnings summary

Executive summary

• Achieved record full-year revenue of $158 million in 2024, up 6% year-over-year, with Q4 revenue of $39 million.

• Wholesale revenue grew 29% year-over-year, offsetting retail softness from pricing pressures and competition.

• Adjusted EBITDA improved to $19.6M for 2024, with sequential margin improvement, though GAAP net loss was $12.1M due to non-recurring items.

• Expanded brand distribution, with Betty's Eddies leading in Massachusetts and Maryland.

• Expanded operations with new cultivation in Illinois, manufacturing in Missouri, and consolidation of Delaware's FSCC.

Financial highlights

• Q4 2024 revenue: $39M (flat year-over-year, down 4% sequentially); full-year revenue: $158M (up from $148.6M).

• Q4 wholesale revenue: $16.2M (flat sequentially, up 18% year-over-year); full-year wholesale: $62.9M (up 29%).

• Q4 retail revenue: $22.2M (down 5% sequentially, down 7.1% year-over-year); full-year retail: $91.5M (down from $95.5M).

• Adjusted gross margin Q4: 43.3% (up from 42.6% sequentially, down from 45.6% year-over-year); GAAP gross margin for 2024: 40%.

• Adjusted EBITDA Q4: $5.9M (up from $5.2M year-over-year and $4.7M sequentially); full-year: $19.6M (down 20%).

Outlook and guidance

• Focus for 2025 is on top-line growth, expanding brand distribution, and improving profitability.

• Anticipates full-year financial contribution from 10 new or expanded assets and further wholesale gains.

• No formal financial guidance will be provided going forward due to industry volatility.

• Capital expenditures planned at $5M for 2025, mainly for facility improvements and automation.