Jushi (JUSH) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $61.6M, down from $65.4M in Q3 2023, mainly due to price compression, competition, and operational issues in key states.

• Gross profit margin improved to 45.4% from 43.6% year-over-year, driven by cost efficiencies and operational improvements.

• Adjusted EBITDA rose 6.5% year-over-year to $10.3M, with margin increasing to 16.8%, but declined sequentially due to seasonality and repositioning costs.

• Net loss narrowed to $16M from $20.6M in Q3 2023, with net loss per share improving to $(0.08).

• Jushi-branded products accounted for 55% of retail revenue, up 300 basis points year-over-year.

Financial highlights

• Gross profit was $28M, with margin at 45.4%, slightly down from $28.5M in Q3 2023.

• Operating expenses increased to $27.8M from $25.7M, mainly due to higher SG&A and amortization.

• Cash, cash equivalents, and restricted cash totaled $22.9M as of September 30, 2024.

• Net cash flows from operations were $2.4M in Q3; $14.4M for the nine months ended September 30, 2024.

• Principal debt reduced by $19.7M YTD, with $181.1M remaining.

Outlook and guidance

• Targeting seven new retail stores by mid-2025 and another seven by mid-2026, a 40% increase in store base.

• Retail expansion in Ohio is expected to increase store count to up to eight locations, with new dispensaries opening in 2025 pending regulatory approval.

• Management focused on organic growth in Ohio, Pennsylvania, and Virginia, and on opportunistic acquisitions.

• Operating expense savings anticipated from recent senior management changes and streamlined leadership.

• Anticipates significant margin and revenue growth from retail expansion and operational improvements.