Cresco Labs loses $21.96-million (U.S.) in Q3

Executive Summary

• Cresco Labs Inc. reported financial and operating results for the third quarter ended September 30, 2025, highlighting strong revenue growth and maintained market leadership in key markets.
• The company achieved $165 million in Q3 revenue and $40 million in adjusted EBITDA, while navigating a significant debt refinancing that resulted in a $16 million loss on extinguishment.
• Management emphasized strategic growth initiatives, including new dispensary openings in Ohio, expansion into Kentucky, and an upcoming product launch in Germany, alongside a strengthened balance sheet following the refinancing of its senior secured term loan.

Key Details

• Q3 2025 Financial Performance:
  • Revenue: $165 million.
  • Gross Profit: $79 million; Adjusted Gross Profit: $80 million.
  • Adjusted Gross Margin: 48.8%.
  • SG&A Expenses: $52 million (31.3% of revenue).
  • Net Loss: $22 million.
  • Adjusted EBITDA: $40 million (24.1% margin).
  • Operating Cash Flow: $6 million.
• Specific Charges:
  • The net loss includes a $16 million loss related to the extinguishment of debt from the refinancing of the senior secured term loan.
  • Includes $2 million in non-cash impairment charges related to California assets held for sale.
• Debt Refinancing:
  • Closed on August 13, 2025.
  • New Facility: $325 million senior secured term loan.
  • Interest Rate: 12.5% per annum.
  • Maturity: August 13, 2030.
  • Proceeds used to repay prior $360 million facility.
• Balance Sheet & Liquidity (as of Sept 30, 2025):
  • Current Assets: $243 million.
  • Cash, Cash Equivalents, and Restricted Cash: $79 million.
  • Non-current Restricted Cash: $3 million.
  • Senior Secured Term Loan (net): $309 million.
  • Mortgage Loan (net): $18 million.
  • Total Shares (fully converted): 490,889,023.
• Operational Updates & Strategy:
  • Maintained No. 1 share position in multiple billion-dollar markets.
  • New dispensaries opened in Ohio.
  • Expansion into Kentucky.
  • Upcoming product launch in Germany.
• Upcoming Events:
  • Conference call and webcast scheduled for November 5, 2025, at 8:30 a.m. Eastern Time.
  • Unaudited condensed interim consolidated financial statements expected to be filed on SEDAR+ and EDGAR on or about November 7, 2025.

Notable Quotes

• "In Q3, we refinanced our debt and strengthened our balance sheet while delivering solid results and maintaining leadership across key markets through disciplined execution. Our proven retail and wholesale capabilities continue to drive profitability, while new dispensaries in Ohio, expansion into Kentucky and our upcoming product launch in Germany are unlocking compelling avenues for growth."
• "The cannabis industry is entering a new phase of growth and consolidation, and Cresco Labs is prepared to lead. Operators with scale, efficiency and discipline will define the next chapter. By leveraging our core assets and operational excellence, we're building an emerging growth platform designed to create long-term value, both within and beyond regulated U.S. cannabis."