Trulieve Cannabis Corp
CNSX:TRUL
Trulieve Cannabis Corp
Trulieve Cannabis Corp. engages in the provision of medical cannabis products and services. The company is headquartered in Quincy, Florida and currently employs 9,000 full-time employees. The company went IPO on 2018-09-25. The firm is a multi-state operator in the United States operating in states, with market positions in Arizona, Florida, and Pennsylvania. The company is providing products across its brand portfolio and delivers optimal customer experiences and increases access to cannabis, helping patients and customers to live without limits. The company operates in regulated markets that require knowledge in cultivation, manufacturing, retail and logistics. The firm utilizes critical ethanol extraction to obtain the cannabis oil used in its products. The company also utilizes carbon dioxide (CO2) extraction for terpene extraction as well as a line of CO2 vaporizer cartridges. The firm has developed a suite of products with stock keeping units (SKUs), including flower, edibles, vaporizer cartridges, concentrates, topicals, capsules, tinctures, dissolvable powders, and nasal sprays.
Trulieve Cannabis Corp. engages in the provision of medical cannabis products and services. The company is headquartered in Quincy, Florida and currently employs 9,000 full-time employees. The company went IPO on 2018-09-25. The firm is a multi-state operator in the United States operating in states, with market positions in Arizona, Florida, and Pennsylvania. The company is providing products across its brand portfolio and delivers optimal customer experiences and increases access to cannabis, helping patients and customers to live without limits. The company operates in regulated markets that require knowledge in cultivation, manufacturing, retail and logistics. The firm utilizes critical ethanol extraction to obtain the cannabis oil used in its products. The company also utilizes carbon dioxide (CO2) extraction for terpene extraction as well as a line of CO2 vaporizer cartridges. The firm has developed a suite of products with stock keeping units (SKUs), including flower, edibles, vaporizer cartridges, concentrates, topicals, capsules, tinctures, dissolvable powders, and nasal sprays.
Revenue: Trulieve reported Q2 revenue of $282 million, in line with guidance but down 1% sequentially. Retail revenue increased by $3 million, helped by higher traffic and volume.
Margins: Gross margin was 50%, down 2 points QoQ due to a reclassification of costs, but this led to $2 million in tax savings for the quarter.
Profitability: Adjusted EBITDA reached $79 million for a 28% margin, marking the company's 22nd consecutive profitable quarter.
Impairments & Net Loss: Net loss was $404 million due to $64 million in non-cash impairment charges from winding down Massachusetts and a $308 million goodwill impairment linked to stock performance.
Cash & Inventory: Ended the quarter with $160 million in cash. Inventory was reduced by $22 million, and the company remains on track for $100 million in operating cash flow and positive free cash flow for 2023.
Cost Reduction: SG&A expenses fell to $96 million, showing progress on operational streamlining.
Outlook: Management expects Q3 revenue to decline mid-single digits sequentially due to seasonality and consumer wallet pressure, but also sees continued cost savings and margin benefits from ongoing optimization.
