iAnthus Capital Holdings Reports $7.6 Million Net Loss for 2024, Revenue Increases to $167.6 Million

iAnthus Capital Holdings, Inc. reported a net loss of $7.6 million for the year ended December 31, 2024, a significant improvement compared to the adjusted net loss of $76.6 million in 2023. Total revenues for 2024 reached $167.6 million, slightly higher than the adjusted $159.2 million in 2023. This increase was primarily driven by the launch of adult-use programs in Maryland and New Jersey, contributing $12.9 million to the year-over-year growth, and expansion of wholesale programs in those states, adding another $8.3 million. However, the Western region, encompassing Arizona and Nevada, experienced a revenue decrease of 26.5% to $39.0 million, largely due to reduced demand in Arizona and the deconsolidation of Nevada operations in June 2024.

The company's gross profit increased to $75.1 million in 2024 from an adjusted $63.2 million in 2023. This improvement was mainly attributed to higher margin in-house product sales in Maryland and New Jersey, along with increased retail demand in New York and lower facility costs in Massachusetts. Conversely, increased competition and labor challenges in Massachusetts led to lower retail revenues. The company harvested approximately 56,460 pounds of plant material in the Eastern region in 2024, compared to 33,730 pounds in 2023, while the Western region saw a decrease to 4,500 pounds from 7,430 pounds. Total operating expenses decreased by 10% to $83.6 million, primarily due to lower share-based compensation, severance expenses, and salaries, partially offset by increased facility, insurance, and technology costs.

Significant strategic developments during the year included the acquisition of Cheetah Enterprises, Inc.'s cannabis wholesale business for approximately $3.5 million, paid through a combination of common shares, cash installments, and performance-based payments. Several dispositions also occurred, including the sale of Vermont operations for $0.2 million, the sale of iA CBD assets for $0.2 million, the sale of Colorado investments for $2.7 million, the sale of certain Massachusetts assets for $3.0 million, and the sale of Nevada assets for $6.5 million. The company also completed the sale of certain Arizona assets for approximately $36.5 million in February 2025. As of March 11, 2025, iAnthus employed 716 full-time and 118 part-time employees.

The company's financial restructuring, completed in June 2022, involved the issuance of a significant number of common shares to lenders in exchange for debt forgiveness. The filing highlights substantial doubt about the company's ability to continue as a going concern due to limited capital resources and historical negative cash flow from operating activities. The company's outlook depends heavily on its ability to generate sufficient revenues and secure additional financing, while navigating the complex and evolving regulatory landscape of the cannabis industry, including federal legal uncertainties and potential challenges related to banking and taxation. The company also faces significant competition from both licensed and illicit cannabis businesses.