iAnthus Capital Holdings, Inc. reported its financial results for the three and nine months ended September 30, 2024, revealing a mixed performance in revenue and profitability compared to the previous fiscal period. For the three months, total revenues decreased to $40.3 million from $42.9 million in 2023, while for the nine months, revenues increased to $124.8 million from $118.4 million. The decline in quarterly revenue was attributed to lower sales in the Western Region, which fell to $8.6 million from $12.9 million, primarily due to decreased demand in Arizona and the deconsolidation of Nevada operations. Conversely, the Eastern Region saw an increase in revenues, rising to $31.7 million from $30.0 million, driven by higher wholesale revenues in New Jersey and retail revenues in New York.

Gross profit for the three months ended September 30, 2024, improved to $18.1 million, up from $13.3 million in the same period last year, reflecting a gross margin increase from 31.1% to 44.9%. For the nine months, gross profit also rose to $56.0 million from $47.3 million. The improvement in gross profit was attributed to lower material costs and a favorable sales mix, particularly in Maryland and New Jersey.

The company reported a net loss of $11.6 million for the three months ended September 30, 2024, a significant reduction from a net loss of $19.2 million in the same period in 2023. For the nine months, the net loss decreased to $35.4 million from $57.9 million. This reduction in losses was supported by a net cash flow from operating activities of $10.7 million, up from $4.8 million in the prior year.

iAnthus's total current assets increased to $54.6 million as of September 30, 2024, from $45.5 million at the end of 2023, while total current liabilities decreased significantly to $86.1 million from $125.4 million. The company’s long-term debt rose to $177.5 million from $165.2 million, contributing to a total shareholders' deficit of $(93.6 million), up from $(61.7 million) at the end of 2023.

Strategically, iAnthus engaged in asset sales, including a $3.0 million asset sale by its subsidiary Mayflower Medicinals, which closed on September 27, 2024, and a $6.5 million asset sale by GreenMart of Nevada, pending regulatory approval. The company recognized gains of $2.2 million and $2.1 million from these transactions, respectively.

The company continues to face challenges, including a working capital deficiency of $31.4 million and an accumulated deficit of $1.36 billion as of September 30, 2024. Additionally, iAnthus expressed doubt about its ability to continue as a going concern for at least the next 12 months due to substantial losses and liquidity constraints.