Cannabis Chart Of The Week: Most MSO Revenue Growth Is New Market Related
Portfolio Pulse from Viridian Capital Advisors
Analysts expect weak Q3 2023 revenue growth for most cannabis companies, with a few exceptions due to acquisitions and new market entries. Companies like 4Front, Cresco Labs, and Trulieve are expected to see sequential declines, while others like Verano, TILT, Ascend Wellness, Jushi, MariMed, TerrAscend, and Schwazze are projected to have sequential growth. Maryland is a key growth factor for Ascend, MariMed, and TerrAscend. Glass House Brands is expected to see a 61% YoY growth due to increased greenhouse production capacity.
October 23, 2023 | 4:34 pm
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NEGATIVE IMPACT
4Front is expected to see a sequential decline of 18.5% due to delays in its Illinois cultivation facility and dispensary network. However, a $10M loan agreement for dispensary buildout could potentially double sales.
The company's delays in Illinois are negatively impacting its revenue growth. However, the new loan agreement could potentially boost sales, offsetting some of the negative impact.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Trulieve is expected to see a sequential decline of 4.4% due to market share loss in Florida and double-digit declines in Arizona state revenues.
The company's market share loss in Florida and revenue declines in Arizona are negatively impacting its revenue growth.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Cresco Labs is expected to see a sequential decline of 7.2% due to flat to slightly down sales in Pennsylvania and Illinois.
The company's exposure to Pennsylvania and Illinois, where sales are flat to slightly down, is negatively impacting its revenue growth.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Ascend Wellness is expected to see sequential growth, with Maryland being a key growth factor.
The company's presence in Maryland is contributing to its sequential growth.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Glass House Brands is expected to see a 61% YoY growth due to increased greenhouse production capacity.
The company's increased greenhouse production capacity is contributing to its YoY growth.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Jushi is expected to see sequential growth, rebounding off weak Q2 results.
The company is expected to rebound from weak Q2 results, leading to sequential growth.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
MariMed is expected to see sequential growth, with Maryland being a key growth factor.
The company's presence in Maryland is contributing to its sequential growth.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
TILT is expected to see sequential growth, rebounding off weak Q2 results.
The company is expected to rebound from weak Q2 results, leading to sequential growth.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Verano is expected to see sequential growth, although the impact of its maximum number of stores in Maryland is barely perceptible due to its size and diversification.
The company's size and diversification are helping it maintain growth, even though the impact of its Maryland stores is minimal.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80