The Cannabist Company Reports Third Quarter 2025 Results

Executive Summary

• The Cannabist Company reported Q3 2025 revenue of $79.9 M, a 7.5% decline YoY and down 7.5% sequentially from Q2, driven by the sale of three Pennsylvania dispensaries and price compression.
• Adjusted EBITDA fell to $3.0 M (down from $8.5 M in Q2) and adjusted gross margin slipped to 32% versus 33% in Q2.
• Post‑quarter divestitures generated ~$19 M cash proceeds ($10 M from Pennsylvania, $11 M from Florida), while the company opened its seventh Ohio retail location, bringing total active stores to 52.

Key Details

Financial Highlights (in $ thousands)
- Revenue: $79,912 (Q3 2025) vs. $86,350 (Q2 2025) and $114,783 (Q3 2024).
- Gross profit: $22,911; Adjusted gross profit: $25,667.
- Adjusted gross margin: 32.1% (down from 33.1% in Q2).
- Income (loss) from operations: $(12,030); Net loss: $(14,655).
- Adjusted EBITDA: $3,041 (down from $8,483 in Q2).
- Cash balance end‑Q3: $17,761 K (up from $15,456 K at end of Q2).

Divestitures & Proceeds
- August 18: Sale of Pennsylvania affiliate – three dispensaries for ~​$10 M cash plus a supply agreement; shift to wholesale model in PA.
- November 10 (post‑quarter): Sale of Florida leasehold/equipment – gross cash proceeds $11 M with up‑to $1 M contingent on future adult‑use program.

Operational Highlights
- Adult‑use sales launched Aug 1 in all three Delaware retail locations.
- Opened sixth Ohio location during quarter; seventh opened post‑quarter; two additional sites (Virginia, Ohio) in development.
- Retail count at quarter‑end: 51 stores (down from 53); after post‑quarter opening: 52 active stores.
- Wholesale revenue fell 20% sequentially to $14.6 M, now ~18% of total revenue.
- New brand partnerships: COAST Cannabis Co. edibles in NJ; Queen Mary’s wellness products in CO.

Capital Expenditure & Cash Flow
- Capex Q3: $200 K (vs. $1.8 M in Q2).
- Operating cash used: $(5,244) K; Investing cash provided: $10,170 K; Financing cash used: $(2,621) K.

Guidance & Outlook
- Management indicated ongoing focus on liquidity, cost reduction, and potential further divestitures or strategic alternatives.
- Conference call scheduled for Nov 10, 2025 at 4:30 p.m. ET to discuss Q3 results.

Notable Quotes

“During the third quarter, we demonstrated improvements in some areas of our business… The sale of our three locations in Pennsylvania contributed more than $8 million in net cash to the balance sheet.” – David Hart, CEO

“We are pleased to announce the finalization of our exit from the Florida market… gross proceeds of $11 million.” – David Hart, CEO