Jushi (JUSH) Q2 2024 earnings summary

Executive summary

• Achieved gross profit of $32.6 million for Q2 2024, with a gross margin of 50.4% and adjusted EBITDA of $14.5 million (22.4% margin), reflecting sequential margin expansion and operational improvements.

• Net loss narrowed to $1.9 million from $14 million in Q2 2023, driven by higher gross profit and lower operating expenses.

• Commercialization strategy advanced with 308 new high-margin SKUs and Jushi-branded products rising to 56% of retail revenue.

• Debt reduction and refinancing initiatives strengthened the capital structure, reducing short-term debt to under $1 million.

Financial highlights

• Revenue for Q2 2024 was $64.6 million, down from $66.4 million in Q2 2023, mainly due to retail price compression and increased competition.

• Wholesale revenue grew 12% year-over-year to $7.6 million, led by a 72% increase in Virginia.

• Operating expenses decreased by 11% year-over-year, mainly due to lower share-based compensation and asset sales.

• Cash, cash equivalents, and restricted cash totaled $35 million as of June 30, 2024.

• Net cash provided by operating activities was $12 million for the first half of 2024.

Outlook and guidance

• Plans to open up to eight stores in Ohio, with two expected by Q1 2025, and further expansion in Illinois and potentially New Jersey.

• Expansion in Ohio includes 15,000 sq. ft. of new cultivation and enhanced processing operations.

• Anticipates above-average store sales and margins in Ohio due to early adult-use market entry and vertical integration.

• Preparing for potential adult-use legalization in Pennsylvania and Virginia, with modest capital projects planned for expansion.

• Maintenance capital expenditures for 2024 expected to be $3–$5 million.