The Cannabist Company (CBSTF) Q4 2024 earnings summary

Executive summary

• Leadership executed a major turnaround with restructuring, asset divestitures, and cost reductions, focusing on building a sustainable business model by the end of 2024.

• Operates in 14 US jurisdictions with 59 active retail locations at year-end 2024, down from 86 at end of 2023, and 17 cultivation/manufacturing facilities.

• FY 2024 revenue reached $459M, with $55M in adjusted EBITDA, reflecting a year of transformation and portfolio simplification.

• Corporate restructuring generated $23M in annualized savings in 2024, with further cost savings planned.

• Proactive balance sheet management extended senior secured debt maturities to at least December 2028, with options to extend to 2029.

Financial highlights

• FY 2024 revenue was $458.7M, down from $511.3M in 2023; Q4 2024 revenue was $96.1M, down 16% sequentially due to asset sales.

• FY 2024 adjusted EBITDA was $54.7M, down from $69.6M in 2023; Q4 adjusted EBITDA was $7.1M.

• FY 2024 net loss was $(205.8)M, compared to $(174.3)M in 2023; Q4 net loss was $(155.8)M.

• Q4 operating cash flow was $4.3M; year-end cash balance was $33.6M, up from $31.5M in Q3.

• Total assets at year-end were $696.2M, total liabilities $726.2M, and shareholder equity $(30.1)M.

Outlook and guidance

• 2025 focus is on business simplification, liquidity management, margin improvement, and cash flow generation, with limited CAPEX.

• High single-digit sequential revenue decline expected in Q1 2025 due to completed divestitures and store closures.

• Anticipates improvements in adjusted EBITDA dollars and margins through 2025, targeting over 20% adjusted EBITDA margin long-term.

• Expects growth in key markets (Ohio, Virginia, Delaware, Maryland) with new retail locations and adult-use transitions.

• Capital expenditures expected to average $2–$3M per quarter in 2025.