The Cannabist Company (CBSTF) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was $79.9M, down 7.5% sequentially and 30% year-over-year, driven by price compression and asset sales, including three Pennsylvania retail locations and a California manufacturing facility.

• Adjusted EBITDA for Q3 2025 was $3.0M, down from $8.5M in Q2 and $14.8M in Q3 2024.

• Net loss for Q3 2025 was $14.3M, a significant improvement from a $77.9M loss in Q3 2024.

• Completed exit from Florida, selling the last asset for $11M with a potential $1M contingent payment.

• Board formed a special committee to review strategic alternatives, including asset sales and mergers.

Financial highlights

• Q3 2025 revenue was $79.9M, down from $86.4M in Q2 and $114.8M in Q3 2024.

• Adjusted gross margin was 32.1% in Q3, down from 33.1% in Q2 and 38.2% in Q3 2024.

• Free cash flow was positive $2.3M, with $5.2M operating cash burn offset by $8.3M in divestiture proceeds.

• Cash at quarter-end was $17.8M, up from $15.5M at Q2 end.

• Capital expenditures in Q3 2025 were $0.2M, reflecting limited spend.

Outlook and guidance

• Management remains focused on liquidity, cost reduction, and footprint optimization, including potential further divestitures and strategic alternatives.

• CapEx expected to remain low, focused on new store openings in Ohio and Virginia and limited enhancements.

• Anticipates continued growth in adult-use markets, with new store openings and expanded wholesale operations in key states.

• Virginia adult-use market launch anticipated in 2026, with additional retail locations in development.