Green Thumb Industries (GTII) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 revenue of $294 million, up 6% year-over-year, and full-year revenue of $1.1 billion, up 8% year-over-year, with Q4 Adjusted EBITDA of $98 million (33% margin) and full-year cash flow from operations at $195 million after $131 million in taxes.

• Opened 10 new stores in 2024, reaching 101 locations across 14 states, and invested $80 million in CapEx focused on high-growth markets and operational upgrades.

• Maintained a strong balance sheet, ending 2024 with $172 million in cash and $239 million in working capital, and repurchased $43 million of shares.

• Continued to innovate with new product launches, strategic partnerships, and expansion into THC beverages and e-commerce.

Financial highlights

• Q4 gross profit was $158 million (54% margin), up from $143 million (51%) year-over-year, and full-year gross profit reached $601.1 million (52.9% margin).

• Q4 adjusted EBITDA was $98 million (33% of revenue); full-year adjusted EBITDA was $371 million (33% of revenue), up 14% year-over-year.

• Net income for Q4 was $13 million ($0.04 per diluted share), with full-year net income of $73 million ($0.31 per basic share).

• Cash flow from operations for 2024 was $195 million after $131 million in taxes.

• Total debt outstanding at year-end was $255 million.

Outlook and guidance

• Expect continued pricing and margin pressure in 2025 due to supply-demand imbalances and competition from unregulated products.

• 2025 capital plan to align with 2024's $80 million spend, focusing on renovations, relocations, and select new store openings.

• Anticipate sequential revenue decline in Q1 2025 due to seasonality and pricing.

• Preparing for adult-use launch in Minnesota before year-end 2025.

• Management expressed confidence in continued growth, citing strong demand for THC and a focus on capital allocation, operational excellence, and brand development.