The Cannabist Company Reports $105.9 Million Net Loss for Fiscal Year 2024

The Cannabist Company Holdings Inc. (formerly Columbia Care Inc.) reported a net loss of $105.9 million for the fiscal year ended December 31, 2024, compared to a net loss of $175.7 million in 2023. Revenue decreased by 10% to $458.7 million, primarily due to increased competition and price compression in certain markets, and the sale of several assets. This decrease was partially offset by growth in maturing markets and regulatory changes, such as the legalization of adult-use sales in Maryland and Ohio. The company's gross profit also decreased by 6% to $168.3 million, reflecting the revenue decline.

Operating expenses decreased by 33% to $190.6 million in 2024 compared to 2023, primarily due to goodwill and intangible impairment charges of $19.3 million and $44.1 million respectively in 2023, a decrease in fixed asset impairments, and a decrease in selling, general and administrative expenses. Other (expense) income, net, decreased by 38% to $39.5 million, primarily due to a gain on disposal group in 2023. The company's income tax expense increased to $43.3 million in 2024 compared to an income tax benefit of $5.4 million in 2023.

Significant developments during the year included the completion of the sale of a non-operating facility in Delaware for gross proceeds of $3.4 million in January 2025, and the entry into a support agreement in February 2025 to restructure approximately $270 million in senior notes. The company also experienced a reduction in its employee headcount from 2,191 as of December 31, 2023 to 1,681 as of December 31, 2024. The company exited operations in Florida, Missouri, Utah, Washington D.C., the European Union, and Puerto Rico during the reporting period.

As of December 31, 2024, The Cannabist Company held 115 licenses with 87 operational or in-development facilities across 12 U.S. jurisdictions. The company's license portfolio allows for approximately 2.0 million square feet of cultivation and manufacturing space, with the potential to produce over 150,000 kilograms of dry flower annually. The company's retail brand, Cannabist, operates 71 dispensaries.

The company noted that conditions and events as of December 31, 2024 raised substantial doubt about its ability to continue as a going concern due to short-term debt obligations. However, the February 2025 support agreement and debt restructuring alleviated this doubt, based on management's projections of sufficient cash and cash equivalents to fund operations for at least one year. The company's financial statements were prepared in accordance with U.S. GAAP and include several non-GAAP measures, such as Adjusted EBITDA. The company also disclosed several material weaknesses in its internal control over financial reporting as of December 31, 2024.