Cresco Labs Delivers Q4 2025 Revenue of $162 Million and Sequential Margin Improvement

Executive Summary

• Cresc​o Labs reported FY 2025 revenue of $656 million, adjusted gross margin of 50.2% and Adjusted EBITDA of $157 million (24.0% margin).
• The company posted a net loss of $140 million for the year, driven by one‑time non‑cash impairment charges of $105 million related to its New York and California reporting units.
• Q4 2025 revenue was $162 million with Adjusted EBITDA of $40 million (25.0% margin) and operating cash flow of $27 million; net loss for the quarter was $89 million, again reflecting a $93 million impairment charge.

Key Details

• Revenue: FY 2025 – $656 M; Q4 2025 – $162 M (down 2% YoY).
• Gross Profit / Adjusted Gross Profit: FY 2025 – $325 M / $329 M; Adjusted gross margin – 50.2%.
• Operating Cash Flow: FY 2025 – $73 M; Q4 2025 – $27 M.
• Free Cash Flow (Non‑GAAP): FY 2025 – $38 M; Q4 2025 – $18 M.
• Adjusted EBITDA: FY 2025 – $157 M (24.0% margin); Q4 2025 – $40 M (25.0% margin).
• Net Loss: FY 2025 – $140 M; Q4 2025 – $89 M.
• Impairment Charges: FY 2025 – $105 M (NY unit write‑down, CA fair‑value adjustments); Q4 2025 – $93 M (NY unit).
• SG&A Expenses: FY 2025 – $218 M; Adjusted SG&A reduced 5.7% YoY to $200 M (30.4% of revenue).
• Balance Sheet (12/31/2025): Cash & cash equivalents $91 M; Senior secured term loan debt $311 M; Mortgage loan $19 M; Total assets $1.197 B; Shareholders’ equity $252 M.
• Share Count: 491,585,556 fully‑converted subordinate voting shares (as of 12/31/2025).
• Conference Call: Scheduled for Thursday, March 5 2026 at 8:30 a.m. ET; webcast access details provided.

Notable Quotes

• “In Q4, we strengthened our financial foundation while expanding margins and generating meaningful cashflow… Our focused strategy continues to enhance our competitive position.” – Management
• “The cannabis industry is consolidating in real time… We are intentionally building a productive cash‑generating platform, balancing organic expansion with selective, accretive acquisitions…” – Management

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