Trulieve Cannabis (TRUL) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $284 million, up 3% year over year, with 95% from retail sales despite seasonality and hurricane impacts.

• Gross margin improved to 61%, driven by operational efficiencies and low cultivation costs; GAAP gross profit was $173 million.

• Adjusted EBITDA was $96 million, or 34% of revenue, up 24% year over year.

• Net loss attributable to common shareholders was $60 million, or $0.33 per share, primarily due to $48 million in campaign and non-recurring charges; adjusted net loss was $12 million, or $0.06 per share.

• Positioned for Florida adult-use legalization, with significant investments in production, retail, and technology.

Financial highlights

• Revenue of $284 million, up 3% year over year, in line with guidance, but down 6% sequentially from Q2 2024.

• Gross profit increased 21% year over year to $173 million, with a 61% margin.

• SG&A expenses were $149 million (52% of revenue), reflecting new store openings and campaign support.

• Cash flow from operations was $30 million; year-to-date cash flow from operations was $241 million.

• Ended Q3 with $319 million in cash and short-term investments, and $481 million in debt at a 7.9% interest rate.

Outlook and guidance

• Q4 revenue expected to be up low single digits sequentially, with gross margins consistent with year-to-date.

• Full-year cash flow from operations projected at least $250 million; capital expenditures of $130 million.

• Well-positioned for Florida adult-use launch in May 2025, pending Amendment 3 passage.

• Sufficient capital to support further investment if recreational sales are approved.