The Cannabist Co. Reports $459 Million in 2024 Revenue

NEW YORK, March 13, 2025 – The Cannabist Co. Holdings Inc., one of the most experienced cultivators, manufacturers and retailers of cannabis products in the U.S., reported its financial and operating results for the fourth quarter and full year ended Dec. 31, 2024. All financial information presented in this release is in U.S. generally accepted accounting principles (GAAP), unaudited, and in thousands of U.S. dollars unless otherwise noted.

Fourth Quarter & Full Year 2024 Financial Highlights (in $ thousands, excl. margin items):

“As we continued our company’s transformation throughout 2024, we implemented structural changes to the business and executed on key initiatives to optimize our retail and cultivation assets, divest non-strategic assets, root out supply chain inefficiencies, and capitalize on adult-use adoption in Ohio,” The Cannabist Co. CEO David Hart said. “Employing a comprehensive approach to balance sheet management, on February 27, we announced an agreement to extend the maturities on our senior secured debt until December 2028, with options to extend through 2029. With currently 70% support from our noteholders, we are confident that this process will be completed. This transaction provides runway for us to focus on the continued optimization of our business, as we complete divestitures, continue to reduce operating and overhead costs, refine our inventory assortment, and improve the operational and financial performance of the company.

“Our mandate in 2025 is to continue to simplify our business, maintain liquidity, improve margins, and drive cash flow generation, putting us in a position to succeed. We have meaningful catalysts in 2025, including the transition to adult use in Delaware and the addition of retail locations in top markets such as Virginia and Ohio.”

Top 5 Markets by Revenue in Q4^[3]: Colorado, Maryland, New Jersey, Ohio, Virginia

Top 5 Markets by Adjusted EBITDA in Q4^[3]: Maryland, New Jersey, New York, Ohio, Virginia

Financial Highlights for Fourth Quarter and Full Year 2024

• Fourth quarter revenue of $96.1 million, a decrease of 16% from the third quarter, primarily as a result of the sale of Eastern Virginia and Arizona businesses in August, as well as 14 stores in Florida during Q4.
• Gross margin in the fourth quarter was 35%, down sequentially, but up 120 basis points (bps) compared to Q4 2023. For the full year 2024, adjusted gross margin remained flat at 38%.
• Adjusted EBITDA in Q4 of $7 million, as compared with $14.8 million in Q3; sequential contraction was largely driven by the sale of assets in Virginia and Arizona, which closed during Q3, as well as pricing pressure in several key markets.
• For the 12 markets remaining following the divestiture of Florida and Washington, D.C., gross margin for FY 2024 increased more than 200 bps year over year, and adjusted EBITDA margin for the full year was essentially flat compared to 2023 for those 12 markets.
• Q4 results were impacted by a $3.1 million provision for credit losses and a $2.1 million intangible impairment.
• On Nov. 7, the company closed on the sale of all 14 Cannabist dispensaries and two cultivation facilities in Florida for consideration of $5 million; transactions for the sale of the remaining Medical Marijuana Treatment Center (MMTC) license and one cultivation facility are pending finalization.
• Capital expenditures in the fourth quarter were $1.7 million; the company continues to expect capital expenditures to average $2 million to $3 million per quarter again in 2025.
• In Q4 2024, the company achieved a positive operating cash flow of $4.3 million.
• The company ended the fourth quarter with $33.6 million in cash, up from $31.5 million in cash at the end of Q3.
• Through several rounds of corporate restructuring during 2024, the company achieved $23 million in annualized cost savings, due to adjustments to align with a simplified footprint.
• Subsequent to the quarter close, the company announced an agreement with noteholders to extend the maturities of senior secured notes to December 2028, with options to extend through 2029.

Operational Highlights for Fourth Quarter and Full Year 2024

• For FY 2024, wholesale revenue increased 11% over 2023; wholesale accounted for approximately 15% of total revenue in 2024, compared to 12% of total revenue in 2023 and 14% in 2022.
• Wholesale revenue decreased 20% sequentially in Q4, impacted in part by asset sales in Eastern Virginia and Arizona; wholesale represented 16% of total revenue in Q4.
• New York demonstrated the largest increase in adjusted EBITDA quarter over quarter as the wholesale market improved; New York was a Top 5 market in gross margin and adjusted EBITDA in Q4.
• As a result of the sale of 14 retail locations in Florida, the closure of one location in Boston, the sale of one location in California, the re-opening of one location in Colorado, and one new opening in New Jersey during Q4, the quarter-end active retail count was 59, compared to 73 active retail locations at the end of Q3 and 86 at year-end 2023.
• In February 2025, the company closed three underperforming locations in Colorado, bringing the total active retail count to 56 at present.
• The company has additional retail locations in development, including one in Virginia and three in Ohio.

Non-GAAP Financial Measures

In this press release, the company refers to certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Gross Profit and Adjusted Gross Margin. The company considers certain non-GAAP measures to be meaningful indicators of the performance of its business. These measures are not recognized measures under GAAP, do not have a standardized meaning prescribed by GAAP and may not be comparable to (and may be calculated differently by) other companies that present similar measures. Accordingly, these measures should not be considered in isolation from nor as a substitute for our financial information reported under GAAP. These non-GAAP measures are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our business that may not otherwise be apparent when relying solely on GAAP measures. These supplemental non-GAAP financial measures should not be considered superior to, as a substitute for, or as an alternative to, and should be considered in conjunction with, the GAAP financial measures presented. We also recognize that securities analysts, investors and other interested parties frequently use non-GAAP measures in the evaluation of companies within our industry.

With respect to non-GAAP financial measures, the company defines EBITDA as net income (loss) before (i) depreciation and amortization; (ii) income taxes; and (iii) interest expense and debt amortization. Adjusted EBITDA is defined as EBITDA before (i) share-based compensation expense; (ii) goodwill and intangible impairment, (iii) adjustments for acquisition and other non-core costs; (iv) gain on remeasurement of contingent consideration, net, (v) fair value changes on derivative liabilities; and (vi) fair value mark-up for acquired inventory. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by Revenue. Adjusted Gross Profit is defined as gross profit before the fair mark-up for acquired inventory. Adjusted Gross Margin is defined as gross margin before the fair mark-up for acquired inventory.

The company views these non-GAAP financial measures as a means to facilitate management’s financial and operational decision-making, including evaluation of the company’s historical operating results and comparison to competitors’ operating results. These non-GAAP financial measures reflect an additional way of viewing aspects of the company’s operations that, when viewed with GAAP results and the reconciliations to the corresponding GAAP financial measure, may provide a more complete understanding of factors and trends affecting the company’s business. The determination of the amounts that are excluded from these non-GAAP financial measures is a matter of management judgment and depends upon, among other factors, the nature of the underlying expense or income amounts. Because non-GAAP financial measures exclude the effect of items that will increase or decrease the company’s reported results of operations, management strongly encourages investors to review the company’s consolidated financial statements and publicly filed reports in their entirety.

Reconciliations of non-GAAP financial measures to their nearest comparable GAAP measures are included in this press release and a further discussion of some of these items is contained in our annual report on Form 10-K.

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