It’s time for your Daily Hit of cannabis financial news for November 11, 2021.
On The Site
Ascend Wellness Holdings, Inc. (OTCQX: AAWH) reported its financial results for the third quarter ending September 30, 2021, with total revenue increasing 7.7% sequentially to $105 million and 131.4% year-over-year. Still, Ascend reported a net loss of $13.0 million during the quarter. The company said it was primarily driven by elevated interest expense due to one-time prepayments of legacy loans and write-offs of unamortized deferred financing costs.
WM Technology, Inc. (Nasdaq: MAPS) announced its financial results for the third quarter ended September 30, 2021. Revenue for WeedMaps increased to $50.9 million, up 9% from the third quarter of 2020 or 46% in the U.S. (when adjusting the prior third quarter to exclude revenue associated with Canada-based retail operators who failed to provide valid license information and were subsequently removed from the Weedmaps marketplace). Net income was $49.2 million as compared to $15.5 million from the prior year period.
Aleafia Health Inc. (OTCQX: ALEAF) reported its financial results for the three ending September 30, 2021 as revenue increased 123% to $9.4 million. Still, Aleafia reported an eye-popping net loss of $82.9 million versus last year’s net loss of $19.8 million. The company attributed the increase in net loss over the prior year’s quarter to non-cash items including a $53.1 million impairment of intangible assets and an $11.3 million impairment of goodwill.
Acreage Holdings, Inc. (OTCQX: ACRHF, ACRDF) reported its financial results for the third quarter of 2021 ending September 30, 2021, with total revenue increasing 52% to $48.2 million, an increase of 9% sequentially. Yahoo Finance only recorded one analyst estimate for earnings of $34 million, which Acreage beat. Acreage also delivered a net loss of $12.3 million, an improvement from a loss of $40.5 million for the same time period in 2020.
GrowGeneration Corp. (NASDAQ: GRWG) reported third-quarter 2021 revenues of $116.0 million, versus $55.0 million in the same period last year. This beat the Yahoo Finance average analyst estimate for revenue of $114 million. GrowGen also delivered a net income of $4.0 million, or $0.07 per share based on a basic share count of 58.5 million. This missed the analyst estimate for earnings of $0.09 per share.
Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) announced its financial results for the third quarter ending September 30, 2021, with revenue growing 2.6% sequentially to $215.5 million, and an increase of 40.6% year-over-year. Still, Cresco recorded a non-cash impairment charge of $291 million in the quarter as a result of the strategic shift in California operations. That resulted in a net loss for the quarter of $263 million. Cresco reported a record net wholesale revenue of $109.3 million and record retail revenue of $106.2 million from 37 stores.
In Other News
Glass House Brands Inc. (OTCQX: GLASF and GHBWF) reported financial results for its third-quarter ending September 30, 2021. Net sales increased 29% to $17.2 million from $13.3 million in Q3 2020 and declined 8% sequentially from $18.7 million in Q2 2021. Kyle Kazan, Glass House Chairman, and CEO, stated: “The California market is now in the long-awaited process of commoditization, and this will be difficult for all who have operations in the Golden State. It is a necessary step in the maturation of the market and similar to what happened in Colorado, Washington, and Oregon. We are leaning into this period by focusing on significantly lowering our COGS through scale and automation at our newly purchased Camarillo facility as we believe that highest quality at the lowest production costs in California will be the big winner.”
Hydrofarm Holdings Group, Inc. (Nasdaq: HYFM) announced financial results for its third quarter ended September 30, 2021. Net sales increased 28.1% to $123.8 million compared to $96.7 million. Net income attributable to common stockholders was $17.3 million or $0.37 per diluted share, compared to $2.0 million or $0.08 per diluted share. Pro forma adjusted net income was $7.7 million or $0.17 per pro forma diluted share, compared to $4.3 million or $0.13 per pro forma diluted share.