C21 Investments Reports Third Quarter Financial Results

Executive Summary

• C21 Investments reported Q3 2025 revenue of $8.1 M (up 3% YoY) with same‑store sales growth of +4% despite a 4% decline in Nevada market sales.
• The company posted Adjusted EBITDA of $1.1 M and generated positive free cash flow of $1.0 M before working‑capital changes, while net loss was $(0.61) M ($0.01 per share).
• Current liabilities were reduced by $1.7 M year‑to‑date, reflecting cash generation used to retire debenture principal and reduce payables and tax obligations.

Key Details

• Revenue: $8,140,752 (3% YoY increase) – driven by 4% same‑store sales growth; wholesale sales slightly lower.
• Gross Margin: 38.2% (down from prior year due to Nevada pricing pressure and seasonality).
• Income from Operations: $354,184.
• Net Income (Loss): $(610,740) – earnings loss per share of $(0.01), primarily from income‑tax provisions.
• Adjusted EBITDA: $1,050,505 (down YoY).
• Free Cash Flow (pre‑working‑capital): $951,551 generated; cash used for tax payments ($600k), debenture principal retirement ($300k), and reduction of payables/short‑term obligations ($600k).
• Cash Balance End Q3: $2,418,561.
• Current Liabilities: $6,291,632 (down $1.7 M YTD).
• Uncertain Tax Position: $11,988,073 (reflecting ongoing Section 280E dispute).

Balance Sheet Highlights

• Total Assets: $54,891,243; Total Liabilities: $28,052,825; Shareholders’ Equity: $26,838,418.
• Inventory increased to $4,257,041; Fixed assets/intangibles at $46,592,261.

Income Statement Highlights (selected periods)

Management Commentary (CEO Sonny Newman)

• Emphasized resilience of retail franchise and outperformance vs. Nevada market decline.
• Highlighted balance‑sheet strength, reduction of current liabilities, and continued focus on strategic growth opportunities.

Notable Quotes

“Our 4% same‑store sales growth… extends our track record of relative outperformance in what remains a challenging operating environment.” – Sonny Newman, CEO & President

All non‑material boilerplate, forward‑looking disclaimer text and company background have been omitted for brevity.