NEW YORK and TORONTO – iAnthus Capital Holdings Inc., which owns, operates, and partners with regulated cannabis operations across the United States, reported its financial results for the third quarter ended September 30, 2024. The Company’s Quarterly Report on Form 10-Q, which includes its unaudited interim condensed consolidated financial statements for the three and nine months ended September 30, 2024 and the related management’s discussion and analysis of financial condition and results of operations, can be accessed on the Securities and Exchange Commission’s (“SEC’s”) website, on the System for Electronic Document Analysis and Retrieval’s (SEDAR+) website, and on the Company’s website. Comparative period results reflects restated figures from the amended Quarterly Report on Form 10-Q/A for the quarter ended September 30, 2023, which was filed with SEDAR+ and the SEC on February 23, 2024. The Company’s financial statements are reported in accordance with U.S. generally accepted accounting principles (“GAAP”). All currency is expressed in U.S. dollars.
Third Quarter 2024 Financial Highlights
- Revenue of $40.3 million, a sequential decrease of 6.3% from Q2 2024 and a decrease of 6.1% from the same quarter in the prior year.
- Gross profit of $18.1 million, a sequential decrease of 12.6% from Q2 2024 and an increase of 35.5% from the same quarter in the prior year.
- Gross margin of 44.9%, reflecting a sequential decrease of 323bps when compared to Q2 2024 and an increase of 1,377bps from the same quarter in the prior year.
- Net loss of $11.6 million, or a net loss of less than $0.01 per share, compared to a net loss of $9.8 million, or a net loss of less than $0.01 per share in Q2 2024, and compared to a net loss of $19.2 million, or a net loss of $0.01 per share, in the same quarter in the prior year.
- Adjusted EBITDA of $5.3 million, a sequential decrease from an Adjusted EBITDA of $8.9 million in Q2 2024, and an increase from an Adjusted EBITDA of $0.8 million from the same quarter in the prior year.
Non-GAAP Financial Information
Non-GAAP financial measures are defined by the SEC and the Canadian Securities Administrators. Reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are included in the tables above. This information should be considered as supplemental in nature and not as a substitute for, or superior to, any measure of performance prepared in accordance with GAAP.
In evaluating our business, we consider and use EBITDA and Adjusted EBITDA as supplemental measures of operating performance. We define EBITDA as earnings before interest, taxes, depreciation and amortization. We define Adjusted EBITDA as EBITDA before share-based compensation, accretion expense, write-downs and impairments, gains and losses from changes in fair values of financial instruments, income or losses from equity-accounted investments, the effect of changes in accounting policy, non-recurring costs related to the Company’s Recapitalization Transaction, litigation costs related to ongoing legal proceedings, and other income. We present EBITDA because we believe it is frequently used by securities analysts, investors and other interested parties as a measure of financial performance of other similarly situated companies in our industry, and we present Adjusted EBITDA because it removes non-recurring, irregular and one-time items that we believe may distort the comparability of EBITDA from period-to-period and with other industry participants.
EBITDA and Adjusted EBITDA are not standardized financial measures defined under GAAP, and are not a measure of operating income, operating performance or liquidity presented in accordance with GAAP. EBITDA and Adjusted EBITDA have limitations as an analytical tool, and when assessing the Company’s operating performance, investors should not consider EBITDA or Adjusted EBITDA in isolation, or as a substitute for net income (loss) or other consolidated income statement data prepared in accordance with GAAP. Among other things, EBITDA and Adjusted EBITDA do not reflect the Company’s actual cash expenditures. Other companies may calculate similar measures differently than us, limiting their usefulness as comparative tools. We compensate for these limitations by relying on GAAP results and using EBITDA and Adjusted EBITDA only as supplemental information.
About iAnthus
iAnthus owns and operates licensed cannabis cultivation, processing and dispensary facilities throughout the United States.
