TAMPA, Fla. — FLUENT Corp., a vertically-integrated, multistate cannabis company, reported financial and operating results for the fourth quarter and full year ended December 31, 2024. Unless otherwise indicated, all financial results are presented in U.S. dollars.
Management commentary
“Closing out the year, we proudly increased our revenues by 6.4%, underscoring our commitment to maintaining sustainable financial growth,” said CEO Robert Beasley. “The successful acquisition of RIV Capital was a transformative milestone, expanding our operational footprint with the addition of retail, wholesale, and cultivation assets in the key New York market. We also completed a non-dilutive debt refinancing under favorable terms, enhancing our capital structure while maintaining financial discipline. With over $40 million in cash and cash equivalents at year-end, we are well-positioned to pursue strategic growth opportunities. Furthermore, the targeted launch of brands such as MOODs and KNACK in New York, and Hyer Kind concentrates in Florida, underscores our continued commitment to brand innovation and market penetration.”
Beasley added, “Looking ahead, we have largely completed our integration efforts and gained valuable insights into what resonates in the New York market, enabling us to refine our approach for even greater impact with both consumers and patients. Our cultivation facility in Chestertown is producing strong results, with the latest crops yielding impressive outputs and THC levels. We are thrilled with the early success of the first harvests under our management, as our operations teams continue to collaborate seamlessly and deliver exceptional performance well. With our enhanced platform now in place, we are confidently optimizing our operational footprint positioning ourselves for continued success in the year ahead.”
Beasley concluded, “While our plans were not reliant on the passage of Amendment 3 in Florida, we have been somewhat impacted by broader industry dynamics. Many in the sector had prepared extensively for the amendment’s passage, and its delay has created market challenges, such as oversupply, heightened competition, and increased product discounting. Despite these headwinds, we remain well-positioned with a robust medical footprint and deep market expertise, enabling us to continue delivering exceptional products and executing our growth strategy as these factors stabilize.”
Q4 2024 Financial Highlights (vs. Q4 2023)
- Revenue was $24.9 million compared to $25.5 million.
- Pro Forma revenue including a full quarter of New York operations would be $29.6 million.
- Florida revenue was $20.3 million compared to $21.6 million.
- Gross profit before fair value adjustments was $10.0 million or 40.1% of revenue, compared to $12.6 million or 49.4% of revenue.
- Adjusted EBITDA was $3.0 million compared to $6.9 million, with the decrease primarily driven by the decrease in revenues in the Florida market.
- Cash flow used in operations for the three months ending December 31, 2024, was $14.7 million compared to cash flow provided by operations of $1.4 million in the prior year.
On December 31, 2024, the Company had approximately $40.1 million of cash and cash equivalents and $82.4 million of total debt outstanding, with approximately 630 million shares outstanding on an as-converted basis, compared to $10.5 million of cash and cash equivalents and $61.2 million of total debt, with approximately 300 million shares outstanding on December 31, 2023.
Additionally, the Company reported an impairment of intangible assets of $64.3 million for the quarter, compared to no impairment in Q4 2023. The impairment charge related to the cannabis license in Florida, and reflects lower anticipated operating profits for the Florida market compared to the last impairment testing date, largely as a result of the pricing pressures in the Florida market. The impairment expense is a non-cash item in the current period and reduces the carrying value of the Company’s intangible assets on its consolidated statements of financial position to $37.6 million.
Full Year 2024 Financial Highlights (vs. Full Year 2023)
Revenue increased 6.4% to $103.6 million compared to $97.3 million.
- Florida revenue increased 0.3% to $86.8 million compared to $86.5 million.
- Gross profit before fair value adjustments was $50.3 million or 48.6% of revenue, compared to $49.5 million or 50.9% of revenue.
- Adjusted EBITDA was $25.0 million compared to $27.2 million, with the decrease primarily driven by the slow down in the Florida market.
Recent Operational Highlights
- Currently operating 42 locations across a footprint spanning Florida, New York, Pennsylvania, and Texas. FLUENT anticipates opening an additional three stores by the end of 2025.
- Progressed construction at brand new, Tampa-based cultivation and processing facility, Rosa, targeting to complete its first harvest target by Q2 2025. The facility expansion will add an additional 7,000 sq ft of canopy to FLUENT’s growing Florida footprint.
- Completed the acquisition of RIV Capital Inc., expanding the Company’s footprint to include New York, with retail, wholesale, and cultivation operations spanning the state.
- Debuted the popular Florida brand MOODs into the New York market. Various MOODs formats are being launched in New York, with the full offering expected to be available in 2025.
- Launched new flower brand KNACK in New York, with an anticipated expansion into Florida in early 2025.
- Introduced FLUENT’s first-ever concentrates line Hyer Kind in Florida, with plans to launch in additional markets in 2025.
- Completed a new senior secured credit agreement of up to $96,500,000 with Chicago Atlantic Admin, LLC, refinancing the Company’s existing $71,000,000 senior secured term loan that was set to mature May 29, 2025.
