Cresco Labs Delivers Strong Q3, Maintains Market Leadership, and Unlocks New Growth Opportunities

Executive Summary

• Cresco Labs reported Q3 2025 revenue of $165 million and an adjusted EBITDA of $40 million, but posted a net loss of $22 million largely due to a $16 million debt‑extinguishment charge.
• On August 13 2025 the company refinanced its senior secured term loan, replacing a $360 million facility with a new $325 million loan at 12.5% interest, extending maturity to 2030.
• The firm highlighted continued market leadership in key U.S. cannabis markets and announced upcoming expansion initiatives (new dispensaries in Ohio, entry into Kentucky, product launch in Germany).

Key Details

• Financial Highlights
• Revenue: $164.9 M (down 1% YoY)
• Gross profit: $79.4 M (48.1% margin)
• Adjusted gross profit: $80.5 M; Adjusted gross margin: 48.8%
• SG&A expense: $51.6 M (31.3% of revenue)
• Net loss: $(21.97 M) – includes $16 M debt‑extinguishment and $2 M non‑cash impairment on California assets.

• Adjusted EBITDA: $39.8 M; Adjusted EBITDA margin: 24.1%

• Balance Sheet & Liquidity

• New senior secured term loan: $325 M, 12.5% interest, maturity Aug 13 2030.
• Cash & cash equivalents (including restricted): $78.7 M as of Sep 30 2025 (down from $141.0 M at year‑end).

• Total debt (senior term loan net): $309 M; mortgage loan net: $18 M.

• Cash Flow

• Operating cash flow: $6.2 M for the quarter.

• Free cash flow (non‑GAAP): $(1.0 M).

• Operational Updates

• New dispensaries opened in Ohio; expansion plans announced for Kentucky.

• Upcoming product launch slated for Germany later this year.

• Conference Call

• Date: Wednesday, November 5 2025, 8:30 am ET (7:30 am CT).
• Access code: 307245; webcast archived for one year on investor website.

Notable Quotes

“In Q3, we refinanced our debt and strengthened our balance sheet while delivering solid results… new dispensaries in Ohio, expansion into Kentucky, and our upcoming product launch in Germany are unlocking compelling avenues for growth.” – Management

All figures are presented in thousands of U.S. dollars unless noted otherwise.