The Cannabist Company (CBSTF) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $87.4M, down 9% sequentially and 29% year-over-year, reflecting store closures, asset sales, and ongoing portfolio optimization.

• Adjusted EBITDA was $8.3M (9.5% margin), with net loss narrowing to $32.2M from $55.2M in Q4, but higher than Q1 2024's $34.6M loss.

• The company operates in 10–13 U.S. jurisdictions with 53–66 active dispensaries and 17–18 cultivation/manufacturing facilities, focusing on both medical and adult-use markets.

• Major debt restructuring was approved by over 75% of noteholders, with court approval pending and litigation ongoing; completion is critical for mid-2025 liquidity due to $59.5M in senior notes maturing.

• Continued cost reduction, business simplification, and divestitures in underperforming markets, with new store openings planned in Ohio and Virginia.

Financial highlights

• Revenue for Q1 2025 was $87.4M, down from $96.1M in Q4 and $122.6M in Q1 2024.

• Adjusted gross margin improved to 36%, up 45–50 bps sequentially; retail gross margin rose 180 bps.

• Adjusted EBITDA margin was 9.5%, up over 200 bps sequentially; adjusted EBITDA for 11 recurring markets was 9.8%.

• Net loss attributable to shareholders was $(32.2)M; EPS was $(0.07), improved from $(0.12) in Q4.

• Cash at quarter-end was $18.9M, down from $33.6M at year-end; net cash used in operating activities was $(15.2)M.

Outlook and guidance

• Management anticipates mid to high single-digit sequential revenue decline in Q2 2025 and continued volatility until divestitures are complete.

• Focus remains on liquidity, balance sheet management, and operational simplification, with capital expenditures expected to average $2–$3M per quarter.

• Growth opportunities tied to regulatory changes and adult-use expansion in Ohio, Delaware, Virginia, and Maryland.