Cresco Labs Delivers $30 Million in Q1 Operating Cash Flow

[PRESS RELEASE] – CHICAGO, May 30, 2025 – Cresco Labs Inc., the industry leader in branded cannabis products with a portfolio of America’s most popular brands and the operator of Sunnyside dispensaries, released its financial and operating results for the first quarter ended and year ended March 31, 2025. All financial information presented in this release is reported in accordance with U.S. generally accepted accounting principles (GAAP) and in U.S. dollars, unless otherwise indicated, and is available on the company’s investor website, here.

First Quarter 2025 Highlights

• First quarter revenue of $166 million. First quarter operating cash flow of $30 million and free cash flow¹ of $25 million.
• Gross profit of $79 million. Adjusted gross profit¹ of $82 million; and an adjusted gross margin¹ of 49% of revenue.
• SG&A of $58 million or 35% of revenue.
• Net loss of $15 million.
• First quarter adjusted EBITDA¹ of $36 million and adjusted EBITDA margin¹ of 22%.
• Retained the No. 1 share position in multiple billion-dollar markets.²

Management Commentary

“We entered 2025 with the flexibility and financial strength needed to navigate market volatility, complete our debt refinancing, and remain both strategic and patient as we invest thoughtfully for long-term growth,” Cresco Labs co-founder and CEO Charlie Bachtell said.

“In Q1, we delivered $166 million in revenue, reflecting our successful plan to reduce AR exposure by limiting sales to wholesale accounts with credit risk,” he said. “We generated $82 million in adjusted gross profit and $36 million in adjusted EBITDA. Most importantly, these actions translate into strong cash results. We generated $30 million in operating cash flow and ended the quarter with $162 million in cash, our highest balance in the past three years.

“We’re focused on ensuring our balance sheet remains in the strongest possible position to support long-term value creation. By staying disciplined and thoughtful in how we deploy capital, we’re positioning Cresco Labs to drive margin expansion, gain market share, and invest in sustainable growth when the right opportunities arise.”

Balance Sheet, Liquidity, and Other Financial Information

• As of March 31, 2025, current assets were $311 million, including cash, cash equivalents, and restricted cash of $159 million. The company had senior secured term loan debt, net of discount and issuance costs, of $353 million and a mortgage loan, net of discount and issuance costs of $18 million.
• Total shares on a fully converted basis to subordinate voting shares were 484,592,240 as of March 31, 2025.

Conference Call and Webcast

The Company will host a conference call and webcast to discuss its financial results at 8:30 a.m. ET on June 2, 2025.  The conference call may be accessed via webcast or by dialing 1-833-470-1428 (US Toll Free) or 1-404-975-4839 (US Local), providing access code 671160. Archived access to the webcast will be available for one year on Cresco Labs’ investor website, here.

Non-GAAP Financial Measures

This release reports its financial results in accordance with U.S. GAAP and includes certain non-GAAP financial measures that do not have standardized definitions under U.S. GAAP. The non-GAAP measures include: earnings before interest, taxes, depreciation, and amortization (EBITDA); adjusted EBITDA; adjusted EBITDA margin; adjusted gross profit; adjusted gross profit margin; adjusted selling, general, and administrative expenses (adjusted SG&A), adjusted SG&A margin; and free cash flow are non-GAAP financial measures and do not have standardized definitions under U.S. GAAP. The company defines these non-GAAP financial measures as follows: EBITDA as net loss (income) before interest, taxes, depreciation, and amortization; adjusted EBITDA as EBITDA less other (expense) income, net, fair value mark-up for acquired inventory, adjustments for acquisition and non-core costs, impairment and share-based compensation; adjusted EBITDA margin as adjusted EBITDA divided by revenues, net; adjusted gross profit as gross profit less fair value mark-up for acquired inventory and adjustments for acquisition and non-core costs; adjusted gross profit margin as adjusted gross profit divided by revenues, net; adjusted SG&A as SG&A less adjustments for acquisition and non-core costs; adjusted SG&A margin as adjusted SG&A divided by revenues, net; and free cash flow as net cash provided by operating activities less purchases of property and equipment and proceeds from tenant improvement allowances. The company has provided the non-GAAP financial measures, which are not calculated or presented in accordance with U.S. GAAP, as supplemental information and in addition to the financial measures that are calculated and presented in accordance with U.S. GAAP and may not be comparable to similar measures presented by other issuers. These supplemental non-GAAP financial measures are presented because management has evaluated the financial results both including and excluding the adjusted items and believes that the supplemental non-GAAP financial measures presented provide additional perspective and insights when analyzing the core operating performance of the business. These supplemental non-GAAP financial measures should not be considered superior to, as a substitute for or as an alternative to, and should only be considered in conjunction with, the U.S. GAAP financial measures presented herein. Accordingly, the company has included below reconciliations of the supplemental non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP.