Cannabis Ancillary Company Urban-Gro's Stock Plunges On Reporting Q4 & 2023 Results, Here's Why
Portfolio Pulse from Rolando García
Urban-Gro (NASDAQ:UGRO), a cannabis ancillary company, reported a significant stock price drop of 23.42% to $1.4 following its Q4 and full-year 2023 financial results. The company experienced a net loss increase of 18.2% to $18.7 million and a negative shift in adjusted EBITDA to -$9.7 million, despite a revenue increase to $71.5 million. The losses were attributed to market shifts and a project backlog. Management remains optimistic about future growth, expecting a revenue increase of over $84.0 million in 2024 and positive adjusted EBITDA.
March 28, 2024 | 7:04 pm
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Urban-Gro reported a 23.42% stock price drop to $1.4 after announcing increased net losses and negative adjusted EBITDA for Q4 and FY2023, despite a revenue increase. Management remains optimistic about future profitability and growth.
The significant stock price drop is directly related to the reported increase in net losses and negative adjusted EBITDA, which typically leads to negative investor sentiment in the short term. However, management's optimism about future growth and profitability could mitigate some of the negative impact over time.
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IMPORTANCE 90
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