The Cannabist Co. Reports $86M in Q2 Revenue

[PRESS RELEASE] – CHELMSFORD, Mass., Aug. 7, 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 second quarter ended June 30, 2025. 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.

Second Quarter 2025 Financial Highlights (in $ thousands, excl. margin items):

^[1] Denotes a Non-GAAP measure. See “Non-GAAP Financial Measures” in the company’s press release for more information regarding the company’s use of non-GAAP financial measures.

^[2] Both Adj. Gross Profit and Adj. EBITDA exclude $11.4 million in Q2 2025, $1.9 million in Q1 2025 and $162 thousand in Q2 2024; see the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2025, for additional disclosure.

“During the second quarter of 2025, we made critical progress in managing the balance sheet with the completion of the debt restructuring transaction, extending the maturity of all senior debt obligations to at least December 2028,” The Cannabist Co. CEO David Hart said. “We made strides with footprint optimization and bringing cash onto the balance sheet during the quarter, closing on the sale of our remaining license in Florida and two retail locations in California. Today, we are announcing a transaction for the sale of our three retail locations in Pennsylvania for approximately $10 million, as we pivot to a wholesale business model in that market, retaining exposure for an eventual adult-use transition.”

Hart said, “As we continued to make progress in optimizing the business, we saw a 30-basis point improvement in adjusted EBITDA margin sequentially. We will continue to take costs out of the business and right-size operations while we enhance our product offering and improve pricing architecture. We are thrilled to have launched adult use at all three of our locations in Delaware on August 1 and look forward to opening additional retail locations in Ohio during the third and fourth quarters. Our focus remains on managing liquidity, proactively addressing the balance sheet and optimizing our operating footprint.”

Top 5 Markets by revenue in Q2^[3]: Colorado, Maryland, New Jersey, Ohio, Virginia

Top 5 Markets by adjusted EBITDA in Q2^[3]: Colorado, Maryland, New Jersey, Ohio, Virginia

Financial Highlights for Second Quarter 2025

• Second quarter revenue of $86.4 million, a decrease of 1% compared to Q1, in part due to the sale of two locations in California during the quarter.
• Adjusted gross margin in the second quarter was 33%, down from 36% in Q1, largely due to inventory obsolescence, primarily in New York, and an inventory reduction initiative across eight targeted markets.
• Adjusted EBITDA in Q2 of $8.5 million; adjusted EBITDA margin increased 30 basis points sequentially to 9.8%.
• For the 10 markets that will remain following the completion of market divestitures of Florida, California and Illinois, adjusted EBITDA margin was 11.7% in Q2.
• Capital expenditures in the second quarter were $2 million; the company continues to expect capital expenditures to average $2 million to $3 million per quarter in 2025, primarily for new store openings.
• The company ended the second quarter with $15.5 million in cash, compared to $18.9 million at the end of Q1.
• On April 17, the company closed on the sale of its remaining MMTC license in Florida for gross proceeds of $5 million; the sale of one cultivation facility in Florida is pending finalization.
• On May 29, the company closed the previously announced plan of arrangement to extend the maturities of senior secured notes to December 2028, with options to extend through 2029.
• During the quarter, the company implemented a corporate restructuring for an estimated $2 million in annualized cost savings due to adjustments to align with a simplified footprint; this is in addition to several rounds of corporate restructuring during 2024, where the company achieved $23 million in annualized cost savings.
• Subsequent to quarter close, on Aug. 7, the company announced a transaction for the sale of its three Pennsylvania medical dispensaries for approximately $10 million in cash, paid at closing, as well as the signing of a concurrent supply agreement; the company will transition to a wholesale model in Pennsylvania, retaining exposure for an eventual transition to adult use in that market.

Operational Highlights for Second Quarter 2025

• For Q2 2025, wholesale revenue increased 16% sequentially to $18.4 million, compared to 3.5% sequential growth in Q1; wholesale accounted for approximately 21% of total revenue, compared to 18% in Q1.
• Efforts continue to rationalize SKUs and improve pricing architecture across our markets.
• In April, adult-use sales began at the company’s third retail location in New Jersey, Cannabist Mays Landing, which opened on Dec. 31, 2024.
• In June, the company launched a brand partnership with COAST Cannabis Co. edibles in Maryland, bringing a new selection of premium, function-forward gummies to adult-use consumers and medical patients.
• As a result of the sale of two retail locations in California, the quarter-end active retail count was 53, compared to 55 at the end of Q1.
• Subsequent to quarter close, the company signed an MSA for its manufacturing and production facility in Balboa, Calif., in advance of a final sale of that facility.
• Subsequent to quarter close, on Aug. 1, the company celebrated the start of adult-use sales in all three retail locations in Delaware.
• The company has additional retail locations in development, including one in Virginia and three in Ohio, with one Ohio location expected to open in Q3.

A line-by-line breakdown of the company’s financial sheet is here.