The Cannabist Company (CBSTF) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 2025 ranged from $86M to $125.2M, down 1% sequentially and 31% year-over-year, mainly due to asset sales and divestitures in multiple states.

• Net loss for Q2 2025 was $77.4M–$77.9M, significantly higher than prior periods, driven by lower revenues, higher expenses, and restructuring.

• Completed major debt restructuring, extending $271M in senior debt maturities to December 2028 and issuing new warrants.

• Strategic focus on divestitures, cost reductions, and business simplification, including asset sales in Florida, California, Illinois, and Pennsylvania.

• Launched adult-use sales in Delaware and Ohio, with continued retail expansion in Ohio and Virginia.

Financial highlights

• Q2 2025 revenue was $86.4M–$125.2M, down from Q1 and prior year, with adjusted EBITDA of $8.5M and margin up to 9.8%.

• Adjusted gross margin ranged from 33% to 39%, impacted by inventory obsolescence and clearance initiatives.

• Net loss for Q2 2025 was $(77.4)M–$(77.9)M; EPS was $(0.16).

• Cash balance at June 30, 2025, was $15.5M, down from $18.9M at March 31, 2025.

• Wholesale revenue grew 16% sequentially to $18.4M, now 20–21% of total revenue.

Outlook and guidance

• Focus on further cost reductions, portfolio simplification, and liquidity management through 2025.

• CapEx expected to remain below $3M per quarter, supporting new store openings and operational enhancements.

• Anticipates continued retail expansion in Ohio and Virginia, and further divestitures to strengthen the balance sheet.