Trulieve Cannabis (TRUL) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $284.3 million, up 3.3% year-over-year, with 95% from retail sales and leading positions in Florida, Arizona, and Pennsylvania.

• Gross margin improved to 61% from 51.9% in Q3 2023, driven by operational efficiencies and low cultivation costs.

• Adjusted EBITDA was $96.1 million, or 34% of revenue, up 24% year-over-year.

• Net loss attributable to common shareholders was $60.2 million, primarily due to $48 million in campaign and non-recurring charges; adjusted net loss was $12 million.

• Cash and short-term investments totaled $319 million at quarter end.

Financial highlights

• Q3 2024 revenue: $284.3 million (+3.3% YoY); gross profit: $173 million (61% margin); adjusted EBITDA: $96.1 million (34% 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.

• Free cash flow for Q3 was negative $7 million, impacted by $48 million in campaign support.

• 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 2024 revenue expected to increase 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.