Debra BorchardtThe Cannabist Company Holdings Inc. (Cboe CA: CBST) (OTCQX: CBSTF) reported its financial results for the fourth quarter and full year ending December 31, 2024. The company saw its sales drop due to a reduction in business to strengthen its balance sheet.
Fourth quarter earnings
In the fourth quarter, Cannabist reported revenue of $96.1 million, which was a decrease of 16% from the third quarter’s revenue of $114 million as well as last year’s fourth quarter earnings of $128 million. The company attributed the decline to the sale of Eastern Virginia and Arizona businesses in August, as well as 14 stores in Florida during the fourth quarter. The revenue missed the Yahoo Finance average analyst estimate for revenues of $110 million.
The net loss in the fourth quarter was an eye-watering $155 million, a huge number compared to the third quarter net loss of $1.7 million and last year’s fourth quarter net loss of $72 million. The earnings per share were ($0.34), which also missed the estimates for earnings of ($0.02).
“As we continued our company’s transformation throughout 2024, we implemented structural changes to the business and executed on key initiatives to optimize our retail and cultivation assets, divest non-strategic assets, root out supply chain inefficiencies, and capitalize on adult use adoption in Ohio,” said David Hart, CEO of The Cannabist Company.
Full-year earnings
Revenue also fell for the full year to $458 million from 2023’s revenue of $511 million. The company noted that wholesale revenue increased 11% over 2023. Wholesale revenue also accounted for approximately 15% of total revenue in 2024, compared to 12% of total revenue in 2023 and 14% in 2022. However, wholesale revenue decreased 20% sequentially in the fourth quarter, impacted in part by asset sales.
The net loss for the year grew to $205 million versus 2023’s net loss of $174 million. The company ended the fourth quarter with $33.6 million in cash, up from $31.5 million in cash at the end of the third quarter, but lower than the $35 million at the end of 2023.
Hart added, “Employing a comprehensive approach to balance sheet management, on February 27, we announced an agreement to extend the maturities on our senior secured debt until December 2028, with options to extend through 2029. With currently 70% support from our noteholders, we are confident that this process will be completed. This transaction provides a runway for us to focus on the continued optimization of our business, as we complete divestitures, continue to reduce operating and overhead costs, refine our inventory assortment, and improve the operational and financial performance of the company.”
Store restructuring
The company made big moves with its store footprint. Cannabist sold 14 retail locations in Florida, closed one location in Boston and sold one location in California. The company also re-opened one location in Colorado and celebrated one new opening in New Jersey during the fourth quarter. The quarter-end active retail count was 59, compared to 73 active retail locations at the end of the third quarter and 86 at year-end 2023.
In February 2025, the company closed three underperforming locations in Colorado, bringing the total active retail count to 56 at present. The company said it has additional retail locations in development, including one in Virginia and three in Ohio.
Looking ahead
