Trulieve Cannabis Corp. Reports 3.3% Revenue Growth, Improved Gross Margins, and Strategic Developments in Q3 2024

Trulieve Cannabis Corp. 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 same periods in 2023.

For the third quarter of 2024, Trulieve generated revenue of $284.3 million, a 3.3% increase from $275.2 million in Q3 2023. Retail revenue rose to $269.2 million, up from $263.2 million, while wholesale revenue increased to $14.6 million from $11.6 million. For the nine months ended September 30, 2024, total revenue reached $885.3 million, a 5.1% increase from $842.2 million in the prior year. The growth in revenue was attributed to the opening of additional dispensaries, totaling 215 as of September 30, 2024, compared to 188 a year earlier, and the transition of Maryland to an adult-use market.

Gross profit for Q3 2024 was $173.3 million, representing 61.0% of revenue, compared to $142.9 million (51.9% of revenue) in Q3 2023. For the nine-month period, gross profit increased to $528.7 million (59.7% of revenue) from $434.8 million (51.6% of revenue) in 2023. The cost of goods sold decreased by 16.1% in Q3 2024, contributing to improved margins.

Despite these gains, Trulieve reported a net loss of $61.9 million for Q3 2024, compared to a loss of $25.8 million in Q3 2023. The net loss attributable to common shareholders for the nine months ended September 30, 2024, was $95.3 million, significantly reduced from $493.4 million in the same period of 2023. The company’s income from operations for the nine months was $96.5 million, a substantial turnaround from an operating loss of $250.8 million in 2023.

Strategically, Trulieve has made significant investments, including the acquisition of Harvest of Ohio, LLC, which expanded its footprint in the adult-use market. The company also exited operations in Massachusetts in June 2023 and Nevada in July 2022, which are classified as discontinued operations. The allowance for credit losses on notes receivable was established at $5.7 million as of September 30, 2024, reflecting a proactive approach to financial management.

Trulieve's total assets increased to $2.87 billion as of September 30, 2024, from $2.73 billion at the end of 2023, while total current assets rose to $603.0 million. However, total shareholders' equity decreased to $1.30 billion from $1.41 billion during the same period. The company reported cash and cash equivalents of $237.7 million, up from $201.4 million at the end of 2023.

Overall, Trulieve's performance reflects a combination of revenue growth, improved gross margins, and strategic acquisitions, despite ongoing net losses and challenges in the competitive cannabis market.