Highlights;
Here is a summary of the press release in bullet points:
Press Release Summary: The Cannabist Co. Holdings Inc. Q2 2025 Financial and Operating Results
Key Financial Highlights:
- Revenue: $86.4 million in Q2 2025, reflecting a 1% decrease compared to Q1, partly due to the sale of two California retail locations.
- Adjusted Gross Margin: 33% in Q2, down from 36% in Q1, attributed to inventory obsolescence in New York and an inventory reduction initiative across eight markets.
- Adjusted EBITDA: $8.5 million in Q2, with a 30-basis point sequential improvement in margin to 9.8%.
- Adjusted EBITDA Margin for Remaining Markets: 11.7% for the 10 markets retained after divesting Florida, California, and Illinois.
- Capital Expenditures: $2 million in Q2, with an expected average of $2 million to $3 million per quarter in 2025.
- Cash Position: $15.5 million at the end of Q2, down from $18.9 million at the end of Q1.
Operational Updates:
- Wholesale Revenue Growth: Increased 16% sequentially to $18.4 million, accounting for 21% of total revenue (up from 18% in Q1).
- Market Optimization:
- Sold remaining Florida MMTC license for $5 million.
- Sold two California retail locations and closed on the sale of three Pennsylvania medical dispensaries for $10 million in cash.
- Transitioning to a wholesale business model in Pennsylvania while retaining exposure for eventual adult-use transition.
- Store Openings:
- Launched adult-use sales at all three Delaware locations on August 1.
- New retail locations in Virginia and Ohio are in development, with one Ohio location expected to open in Q3.
Strategic Initiatives:
- Debt Restructuring: Extended maturity of senior secured notes to December 2028, with options to extend through 2029.
- Cost Savings: Achieved $2 million in annualized cost savings through corporate restructuring in Q2, adding to $23 million in savings from 2024 restructuring efforts.
- Product Optimization: Continued SKU rationalization and pricing architecture improvements across markets.
- Partnerships: Launched a brand partnership with COAST Cannabis Co. in Maryland for premium edibles.
Top Markets:
- Revenue (Q2): Colorado, Maryland, New Jersey, Ohio, Virginia (listed alphabetically).
- Adjusted EBITDA (Q2): Colorado, Maryland, New Jersey, Ohio, Virginia (listed alphabetically).
Subsequent Events:
- Pennsylvania Dispensaries Sale: Announced the sale of three Pennsylvania medical dispensaries for $10 million, with a concurrent supply agreement.
- California Facility Sale: Signed a manufacturing and production facility agreement in Balboa, California, pending final sale.
This summary captures the key financial results, operational updates, and strategic initiatives highlighted in The Cannabist Co.’s Q2 2025 press release. Let me know if you’d like further clarification!
[PRESS RELEASE] – CHELMSFORD, Mass., Aug. 7, 2025 – The Cannabist Co. Holdings Inc., a leading U.S.-based cultivator, manufacturer, and retailer of cannabis products, has reported its financial and operating results for the second quarter ended June 30, 2025. All financial information presented below is in U.S. generally accepted accounting principles (GAAP), unaudited, and expressed in thousands of U.S. dollars unless otherwise specified.
Second Quarter 2025 Financial Highlights
(in $ thousands, excluding margin items):
Top 5 Markets by Revenue in Q2: Colorado, Maryland, New Jersey, Ohio, Virginia
Top 5 Markets by Adjusted EBITDA in Q2: Colorado, Maryland, New Jersey, Ohio, Virginia
CEO Commentary
David Hart, CEO of The Cannabist Co., stated, “During the second quarter, we achieved significant milestones in balancing our operations and improving our financial stability. The completion of our debt restructuring transaction, which extends the maturity of our senior debt obligations to at least December 2028, was a critical step forward. We also made strides in optimizing our footprint by selling our remaining license in Florida and two retail locations in California. Today, we are excited to announce the sale of our three Pennsylvania retail locations for approximately $10 million, allowing us to transition to a wholesale business model in that market while maintaining exposure for the eventual adult-use transition.”
Hart added, “Our focus on operational efficiency and cost reduction has yielded positive results, with a 30-basis point improvement in adjusted EBITDA margin compared to the previous quarter. We remain committed to managing liquidity, optimizing our operations, and enhancing our product offerings. The launch of adult-use sales at all three of our Delaware locations on August 1 and our upcoming retail openings in Ohio are key steps in our growth strategy.”
Financial Highlights for Second Quarter 2025
- Revenue for the second quarter was $86.4 million, representing a 1% decrease compared to the first quarter, partly due to the sale of two California locations.
- Adjusted gross margin was 33%, down from 36% in the first quarter, primarily due to inventory obsolescence in New York and inventory reduction initiatives across eight markets.
- Adjusted EBITDA was $8.5 million, with the adjusted EBITDA margin improving by 30 basis points sequentially to 9.8%.
- For the 10 markets retained after divestitures in Florida, California, and Illinois, the adjusted EBITDA margin was 11.7% in Q2.
- Capital expenditures were $2 million for the quarter, consistent with the company’s expectation of $2 million to $3 million per quarter in 2025, primarily for new store openings.
- The company ended the quarter with $15.5 million in cash, compared to $18.9 million at the end of Q1.
- On April 17, the company sold its remaining Florida MMTC license for $5 million in gross proceeds; the sale of one Florida cultivation facility is pending.
- On May 29, the company completed a plan of arrangement to extend the maturity of senior secured notes to December 2028, with options to extend through 2029.
- A corporate restructuring was implemented during the quarter, yielding an estimated $2 million in annualized cost savings, adding to the $23 million achieved in 2024 through prior restructuring efforts.
- Subsequent to the quarter’s close on August 7, the company announced the sale of its three Pennsylvania medical dispensaries for approximately $10 million in cash, transitioning to a wholesale model in that market while retaining exposure for future adult-use opportunities.
Operational Highlights for Second Quarter 2025
- Wholesale revenue increased 16% sequentially to $18.4 million, accounting for 21% of total revenue, up from 18% in Q1.
- The company continues to streamline SKUs and refine pricing strategies across its markets.
- In April, adult-use sales began at the third New Jersey retail location, Cannabist Mays Landing, which opened on December 31, 2024.
- In June, the company launched a brand partnership with COAST Cannabis Co. edibles in Maryland, introducing premium gummies to adult-use consumers and medical patients.
- Following the sale of two California retail locations, the active retail count at quarter-end was 53, down from 55 at the end of Q1.
- Subsequent to the quarter’s close, the company signed a manufacturing and production facility agreement in Balboa, California, ahead of its sale.
- On August 1, adult-use sales commenced at all three Delaware retail locations.
- The company is developing additional retail locations, including one in Virginia and three in Ohio, with one Ohio location expected to open in Q3.
A detailed breakdown of the company’s financials can be found here.
