MariMed Inc., a multi-state operator in the U.S. cannabis industry, reported its financial results for the three and nine months ended September 30, 2024, showing notable changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the three months ended September 30, 2024, MariMed generated total revenue of $40.6 million, a 4.6% increase from $38.8 million in the same period of 2023. Product revenue for the same period rose by 5.1% to $39.7 million, driven by a significant increase in wholesale revenue, particularly from Illinois. However, retail sales experienced a decline of $700,000, primarily due to lower revenue from Illinois dispensaries. For the nine months ended September 30, 2024, total revenue reached $119.0 million, an 8.4% increase from $109.7 million in the prior year.

Despite the revenue growth, MariMed's income from operations decreased to $1.3 million for Q3 2024, down from $3.3 million in Q3 2023. For the nine-month period, income from operations fell to $4.3 million from $12.0 million. The company reported a net loss of $1.0 million for Q3 2024, an improvement from a net loss of $4.3 million in Q3 2023. The nine-month net loss also decreased to $3.9 million from $5.9 million in the previous year.

Total operating expenses for the three months ended September 30, 2024, increased by 14.0% to $15.4 million, attributed to higher personnel costs from recent hiring to support growth. For the nine months, operating expenses rose by 25.2% to $45.8 million, reflecting increased costs associated with acquisitions and operational expansion.

Strategically, MariMed completed several acquisitions, including Allgreens Dispensary, LLC and Our Community Wellness & Compassionate Care Center, Inc. (MedLeaf) in April 2024, enhancing its retail presence in Illinois and Maryland. The company also acquired Ermont, Inc. in March 2023, which has contributed to its financial results since the acquisition date. The acquisition of MedLeaf allowed for the resumption of adult-use retail sales in August 2024.

As of September 30, 2024, total current assets increased to $56.7 million from $51.4 million at the end of 2023, while total liabilities rose to $125.8 million from $107.2 million. The company reported total stockholders’ equity of $67.8 million, a slight decrease from $69.9 million at the end of 2023.

MariMed's cash and cash equivalents decreased to $9.8 million from $14.6 million at the end of 2023, reflecting cash used in investing activities, including capital expenditures and acquisitions. The company reported net cash provided by operating activities of $7.2 million for the nine months ended September 30, 2024, compared to $4.7 million in the same period of 2023.

Overall, MariMed's financial performance reflects a combination of revenue growth, strategic acquisitions, and increased operational costs, positioning the company for future expansion in the evolving cannabis market.