Trulieve Cannabis (TRUL) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $303 million, up 2% sequentially and 8% year over year, with 95% from retail sales and a GAAP gross profit of $182 million, representing a 60% gross margin.

• Net loss narrowed to $12 million, a 48% sequential improvement; adjusted net income was $0.2 million, excluding non-recurring items.

• Adjusted EBITDA was $107 million (35% margin), exceeding expectations and up 36% year over year.

• Cash flow from operations was $71 million, with free cash flow of $45 million and quarter-end cash of $356 million.

• Retail network expanded to 206 stores, including the 200th location milestone, with new dispensaries opened in Florida, Ohio, and Pennsylvania.

Financial highlights

• Gross margin improved to 60%, up from 50% a year ago, driven by lower cultivation costs and product mix.

• Retail revenue was $289 million, up 2% sequentially and 6% year over year; traffic increased 3% from Q1 2024.

• Operating expenses dropped 70% year over year, reflecting cost discipline and absence of prior-year goodwill impairment.

• Net loss per share from continuing operations improved to $(0.04); adjusted net income per diluted share was $0.00.

• Free cash flow for the quarter was $45 million, up from $(15.6) million a year ago.

Outlook and guidance

• Q3 revenue expected to decline mid-single digits sequentially but rise mid-single digits year-over-year.

• Gross margins anticipated to remain at least in the mid-50s% for the rest of the year.

• Full-year targets raised to at least $250 million in operating cash flow and $100 million in capital expenditures.

• On track to open at least 25 new stores in 2024, with accelerated store openings in August and September.

• Operating expenses and capital expenditures projected to increase in 2H 2024.