Acreage Holdings (ACRG) Q3 2024 earnings summary

Executive summary

• Q3 2024 consolidated revenue was $39.6 million, down 30% year-over-year due to liquidity constraints and competitive pressures.

• Net loss attributable to Acreage was $19.5 million, compared to $7.6 million in Q3 2023.

• Adjusted EBITDA was $0.6 million, a 91% decrease from $6.6 million in Q3 2023.

• Launched non-medical cannabis sales in Ohio, accounting for 38% of Ohio revenue in Q3.

• Canopy USA acquisition expected to close in the first half of 2025.

Financial highlights

• Gross margin was 35% in Q3 2024, down from 38% in Q3 2023.

• Total operating expenses reduced by 5% year-over-year to $22.6 million.

• Cash and cash equivalents at quarter-end were $13.8 million.

• Retail revenue was $27.4 million, wholesale revenue $12.2 million.

• Net loss per share was $0.16, compared to $0.07 in Q3 2023.

Outlook and guidance

• Management expects improved sales in coming quarters due to enhanced inventory and new product launches.

• Ohio market seen as a significant growth opportunity.

• Anticipates closing Canopy USA acquisition by first half of 2025.