Q1 2025 Cresco Labs Inc Earnings Call Transcript
Key Points
- Cresco Labs Inc (CRLBF) reported $166 million in revenue for Q1 2025, in line with guidance.
- The company generated $82 million in adjusted gross profit and $36 million in adjusted EBITDA.
- Cresco Labs Inc (CRLBF) achieved $30 million in operating cash flow, ending the quarter with $162 million in cash, the highest balance in three years.
- The company is expanding its footprint strategically, focusing on high-margin growth states like Pennsylvania and Ohio.
- Cresco Labs Inc (CRLBF) maintains a leading position in branded wholesale products, retaining the number one market share in Illinois and Pennsylvania.
- The company experienced a 5% decline in total retail revenue from Q4, driven by seasonality and competition in Illinois.
- Wholesale revenue declined sequentially due to volume decreases and a strategic decision to limit sales to accounts with credit risk.
- Adjusted gross margin for the quarter was 49%, down 20 basis points sequentially.
- Cresco Labs Inc (CRLBF) expects revenue to be down slightly in Q2 due to Illinois' mandatory seed-to-sale system conversion.
- The company anticipates margin pressure in Q2, further amplified by the Illinois state conversion process.
Good day, and welcome to Cresco Labs first-quarter 2025 earnings conference call. (Operator Instructions) Please note, this event is being recorded. I would like to turn the call over to TJ Cole, Senior Vice President, Corporate Development and Investor Relations for Cresco Labs. Please go ahead. Thank you.
Good morning, and welcome to Cresco Labs first-quarter 2025 earnings conference call. On the call today, we have Chief Executive Officer and Co-Founder, Charles Bachtell; Chief Financial Officer, Sharon Schuler; and President, Greg Butler, who will be available for the Q&A. Prior to this call, we issued our first quarter earnings press release, which has been filed on CEDAR and is available on our Investor Relations website. On Friday, May 30, 2025, we filed the company's quarterly financial statements and MD&A for the quarter ended March 31, 2025, on SEDAR and EDGAR. Before we begin, I want to remind you that statements made on today's call may contain
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