The Public Cannabis Company Revenue & Income Tracker, managed by New Cannabis Ventures, ranks the top revenue producing cannabis companies. October was a light month for reporting.
Tracker Rules
This data-driven, fact-based tracker will continually update based on new financial filings so that readers can stay up to date. Companies must file with the SEC or SEDAR and be current to be considered for inclusion. When we launched this resource in May 2019, companies with quarterly revenue in excess of US$2.5 million qualified. As the industry has scaled and as more companies have gone public, we have raised the minimum several times subsequently, including a move to US$5 million in October 2019, to US$7.5 million in June 2020, to US$10 million in November 2020 and US$12.5 million in August 2021. Due to the rapid growth in the cannabis industry, we raised the minimum to US$25 million (C$34.2 million) to qualify for what we now call the senior list and introduced a junior list with a minimum of US$12.5 million (C$17.1million) in September 2021.
A Note About Adjusted Operating Income
In May 2019, we added an additional metric, “Adjusted Operating Income”, as we detailed in our newsletter. The calculation takes the reported operating income and adjusts it for any changes in the fair value of biological assets required under IFRS accounting. We believe that this adjustment improves comparability for the companies across IFRS and GAAP accounting. We note that often operating income can include one-time items like stock compensation, inventory write-downs or public listing expenses, and we recommend that readers understand how these non-cash items can impact quarterly financials. Many companies are moving from IFRS to U.S. GAAP accounting, which will reduce our need to make adjustments. Please note that our rankings include only actual reported revenue and not pro forma revenue. We also note that companies with non-cannabis operations must provide segment-level financial reports that detail not only revenue but also operating profit to be have their operating profit included in the tracker. Currently, Jazz Pharma (NASDAQ: JAZZ) and Tilray (TSX: TLRY) (NASDAQ: TLRY) aren’t providing this information.
Tracker Inclusion Updates
At the time of our last update on September 30th, 38 companies qualified for inclusion on the senior list, including 30 filing in U.S. dollars and 8 in the Canadian currency. Currently, 30 companies that file in U.S. dollars qualify and 8 that file in Canadian dollars are qualifying for the senior lists, a total of still 38. The junior list now includes 11 companies reporting in U.S. dollars and 6 in Canadian dollars. There were no other additions and deletions or category changes during October. On a combined basis, the Public Cannabis Company Revenue & Income Tracker now includes 55 companies.
We expect to add additional companies in the months ahead, and, due to pending or recently completed mergers, we anticipate some removals as well. We note that Intercure (TASE: INCR) (NASDAQ: INCR), which reports in the Israeli currency, qualifies for the junior list, but we haven’t yet added it due to its different reporting currency.
Included Companies That Reported in October
Since our last update, there haven’t been many companies reporting. November will be very busy.
Senior – American Dollar Reporting
The only companies to report revenue in October were Turning Point Brands (NASDAQ: TPB) and Tilray (NASDAQ: TLRY) (TSX: TLRY), which saw cannabis sales increase 10% sequentially to $58.6 million. This was down 17% from a year ago. Turning Point Brands saw its Zig-Zag revenue gain 13% sequentially in Q3, up 23% from a year earlier.
Most of the rest of these companies will be reporting in November, with many already scheduled to do so. Among the largest names by revenue, we are going to see 9 of the largest MSOs report soon, including Curaleaf (OTC: CURLF) (CSE: CURA), Trulieve (OTC: TCNNF) (CSE: TRUL), Green Thumb Industries (OTC: GTBIF) (CSE: GTII), Verano Holdings (OTC: VRNOF) (CSE: VRNO), Cresco Labs (OTC: CRLBF) (CSE: CL), Columbia Care (OTC: CCHWF) (NEO: CCHW) (CSE: CCHW), Ayr Wellness (OTC: AYRWF) (CSE: AYR.A), Ascend Wellness (OTC: AAWH) (CSE: AAWH) and TerrAscend (OTC: TRSSF) (CSE: TER).
According to Sentieo, analysts expect Curaleaf revenue is projected to increase 21% in Q3 to $387 million with adjusted EBITDA of $130 million. Analysts project Trulieve generated revenue of $358 million in Q3, up 13%, with adjusted EBITDA of $124 million. GTI is expected to have generated Q3 revenue of $257 million, up 10%, with adjusted EBITDA of $79 million. Verano Holdings is projected to have generated revenue in Q3 of $236 million, up 14%, with adjusted EBITDA of $78 million. Cresco Labs revenue is expected to be similar to a year ago at $214 million with adjusted EBITDA of $49 million.
Among the smaller of the largest MSOs, Columbia Care revenue is expected to be $136 million in Q3, up 2%, with adjusted EBITDA of $17 million. Ayr Wellness revenue is forecast by analysts to have increased in Q3 by 25% to $120 million with adjusted EBITDA of $22 million. Ascend Wellness is expected to have generated revenue during Q3 of $108 million, up 14%, with adjusted EBITDA of $25 million. TerrAscend is expected by analysts to have Q3 revenue of $77 million, up 57%, with adjusted EBITDA of $13 million.
Some of the largest ancillary companies will report in early November as well. Scotts Miracle-Gro, which owns Hawthorne, reports its Q4 on 11/2. Hydrofarm (NASDAQ: HYFM) reports 11/9 and is projected see revenue of $75 million in Q3, down sequentially and down 44% from a year ago. Adjusted EBITDA is projected to be -$6 million. GrowGeneration (NASDAQ: GRWG) Q3 revenue is expected to fall 50% from a year ago to $58 million with adjusted EBITDA of -$5 million. REIT Innovative Industrial Properties (NYSE: IIPR) is expected to see revenue increase 27% from a year ago to $68 million, down sequentially. Finally, WM Technology (NASDAQ: MAPS) is projected to generate revenue of $51 million in Q3, roughly flat to a year ago, with adjusted EBITDA of breakeven.
Junior – American Dollar Reporting
No companies reported in October, but November will be filled with reports from this group, though most haven’t yet scheduled. Cronos Group (NASDAQ: CRON) (TSX: CRON) could lift to the senior list, as the company is projected to report 25% growth from a year ago in revenue to $25 million.
Senior – Canadian Dollar Reporting
HEXO Corp. (NASDAQ: HEXO) (TSX: HEXO) reported its Q4 during October. Sales fell sequentially by 14% but more than doubled from a year ago due to acquisitions. The operating loss was large, but it included write-downs.
In November, the largest company in revenue and market cap, Canopy Growth (NASDAQ: CGC) (TSX: WEED) will report its Q2 financials. Analysts expect that the company will generate revenue of C$114 million, down 14% from a year ago. Adjusted EBITDA is expected to be -C$65 million.
Junior – Canadian Dollar Reporting
Most of these companies will report in November, but none have yet scheduled release dates.
Stay up to date
Visit the Public Cannabis Company Revenue Tracker to track and explore the complete list of qualifying companies. We have recently created a way for our readers to access our library of Revenue Tracker articles. For our readers who are interested in staying on top of scheduled earnings calls in the sector, we have created and continually update the Cannabis Investor Earnings Conference Call Calendar.
