Trulieve Cannabis (TRUL) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $303 million, up 7.7% year-over-year and 2% sequentially, with 95% from retail sales and significant margin expansion; gross profit was $182 million and gross margin improved to 60% from 50% a year ago.

• Net loss narrowed to $12 million, a significant improvement from prior periods; adjusted net income was $0.2 million, excluding non-recurring items.

• Adjusted EBITDA was $107 million (35% margin), up 36% year-over-year, reflecting higher revenue and improved cost controls.

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

• Retail network expanded to 200+ stores, with new dispensary openings in Florida, Ohio, and Pennsylvania, and continued focus on branded product sales and customer loyalty initiatives.

Financial highlights

• Gross profit increased 28% year-over-year to $182 million, with gross margin at 59.9%-60% in Q2 2024.

• Adjusted EBITDA margin expanded to 35% from 28% year-over-year.

• Net loss per share from continuing operations improved to $(0.04)-$(0.05) from $(1.80) year-over-year.

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

• SG&A as a percentage of revenue was 33.8%-34%, flat sequentially.

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 2024.

• 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.

• Management highlighted strong positioning for future growth catalysts, citing scale in key markets and recent investments.