Cresco Labs Announces Increased Profitability in Third Quarter

Cresco Labs reveal 184%  revenue growth in financial results for the third quarter ended September 30, 2019.

Cresco Labs Inc, one of the largest vertically integrated multistate cannabis operators in the United States, today released its unaudited financial results for the third quarter ended September 30, 2019. All financial information presented in this release is in U.S. dollars, unless otherwise noted.

Summary of the Third Quarter 2019 Highlights:


  • Third quarter revenue of $36.2 million, up 184% year-over-year and 21% quarter-over-quarter.
  • Third quarter pro forma revenue1 increased 48% quarter-over-quarter to $73.6 million, which includes the impact of pending acquisitions and investments.


  • Third quarter Adjusted EBITDA2 of $11.1 million, compared to $9.7 million in the prior-year period. Excluding the impact of biological assets, adjusted EBITDA for the third quarter was $3.1 million.
  • Third quarter 2019 financial results included $4.5 million related to share-based incentive compensation, acquisition and other non-recurring costs of $4.7 million, and $2.2 million in expansion and relaunch costs.

Net Income

  • Third quarter net loss3 of $8.6 million, compared to net income of $1.2 million in the prior-year period.

Balance Sheet

  • As of September 30, 2019, the Company had total assets of $416.5 million, including cash and cash equivalents of $73.7 million and a working capital position of $144.6 million with zero debt on the balance sheet.
  • On November 26, 2019, the Company announced a sale-and-leaseback agreement for its Marshall, Michigan and Yellow Springs, Ohio facilities for $38 million which is expected to close within 30 days.


  • As of September 30, 2019, the Company was operational in six U.S. states, with binding transactions pending in New York and Massachusetts, as well as approved expansion into Michigan.
  • On October 8, 2019, the Company closed its acquisition of 100% of the membership interests of Gloucester Street Capital, LLC, the parent entity of Valley Agriceuticals, LLC, providing the Company with one of 10 vertically integrated licenses granted in the State of New York.
  • The waiting period under the HSR Act for the Company's pending acquisition of Origin House expired on October 22, 2019, satisfying one of the remaining conditions to completing the acquisition. The Company expects its acquisition of Origin House to close in early 2020, which greatly expands its distribution network in California.
  • The Company signed a purchase agreement to acquire certain assets from Tryke Companies, LLC, a vertically integrated seed-to-sale cannabis company, including six prime Reef Dispensary locations in Nevada and Arizona, expanded licensed cultivation and process capacity in Las Vegas and Phoenix, and entry into the Utah market.
  • On November 26, 2019, the Company announced the mutual termination of its proposed acquisition of VidaCann, Ltd eliminating $120 million in near-term cash requirements.


  • The Company continued hiring top talent, bringing total staff headcount to over 1,700 employees at the end of the third quarter of 2019, including pending acquisitions.

"Subsequent to the end of Q3, we closed the acquisition of Valley Agriceuticals, giving us four dispensaries in New York, one of the most significant hubs of consumer influence in the world. In California, the other market that has an outsized influence on U.S. and global consumer behavior, our wholesale revenue more than doubled in the quarter. We are making meaningful progress on our objective of creating the first national cannabis brand."said Charles Bachtell, Co-founder and CEO of Cresco Labs. 

To access the full financial reports please visit the Cresco Labs website here.

Disclaimer: Past performance is not an indicator of future performance.

To learn more about Cresco Labs visit their Company HQ here.

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Niki Mohazeb
Niki Mohazeb

Niki is a Sydney based writer, with a passion for promoting the health benefits of medicinal cannabis. Niki also enjoys researching and writing about the future of cannabis along with the many other benefits that the plant provides, such as the diverse utilities of hemp.

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