Cresco Labs Inc. reported third quarter results on Tuesday, revealing that revenue missed Wall Street expectations.
The company reported a third-quarter net loss of $8.6 million, versus net income of $1.2 million in the year-ago quarter. Cresco did not report a per-share earnings figure.
Revenue for the quarter rose to $36.2 million from $12.7 million a year ago however analysts polled by FactSet expected sales of $37.9 million.
Company CEO and Co-Founder, Charlie Bachtell said on the earnings call, “Cresco’s mission continues to be to normalize and professionalize with cannabis industry.
With the top management team in the industry, we continue to execute at a different level. We get access to market. We get operational. We get products on the shelves and we get disproportionate market shares. We also manage regulatory challenges at the state and federal level with an unmatched level of success.”
He added, “We are focused, strategic and deep. We’ve established proficiency in all four verticals of the value chain, which is critical today, but we’ve effectively prioritized the middle two verticals, branded products and distribution, a business model for consumer verticals that historically has garnered the largest gross margins, the largest EBITDA margins and premium valuations for shareholders. We built the most strategic geographic footprint in cannabis and we obtained meaningful material positions in each market.”
He further said, “For Cresco Labs, this approach has garnered consecutive quarters of profitability and we’re the only MSO in the industry with a top market share in more than one top-tier state. Allocating shareholder capital is a fundamental responsibility and key to a company’s ability to execute. We focus on developing a superior capital agenda, responsibly accelerating the top-line on an organic basis, managing costs to drive bottom line and executing accretive transactions that build shareholder value. Cresco Labs is committed to this disciplined approach to growing profitably. In Q3, we continue to deliver on these commitments.”
Shares of Cresco Labs have dropped 14% this year so far.