Grown Rogue International (GRIN) Q2 2024 earnings summary

Executive summary

• Achieved record quarterly revenue of $7.7M, up 23% year-over-year for the quarter ended June 30, 2024.

• Adjusted EBITDA (aEBITDA) rose 21% to $2.5M, with a margin of 32.7%.

• Operating cash flow before working capital changes declined 38% to $1.2M, mainly due to increased SG&A for New Jersey launch and one-time Michigan partner payments.

• Expanded into New Jersey with licensing approval and increased Michigan ownership to 80%.

• Reduced outstanding debt by $1.75M via convertible debenture conversion, lowering annual cash interest by $0.2M.

Financial highlights

• Revenue reached $7.7M, up from $6.3M year-over-year.

• aEBITDA increased to $2.5M from $2.1M, a 21% rise.

• aEBITDA margin slightly decreased by 50 bps to 32.7%.

• Free cash flow was $0.9M after $1.0M in New Jersey construction advances.

• Net loss for the quarter was $7.6M, compared to net income of $0.3M in the prior year period, primarily due to a $7.5M unrealized loss on derivative liability.

Outlook and guidance

• Anticipates New Jersey sales in Q4 2024 and Illinois sales in the second half of 2025.

• Expansion strategy targets entry into one new market every 9 to 12 months.