The Public Cannabis Company Revenue & Income Tracker, managed by New Cannabis Ventures, ranks the top revenue producing cannabis stocks that generate industry sales of more than US$7.5 million per quarter. This data-driven, fact-based tracker will continually update based on new financial filings so that readers can stay up to date. Companies must file with the SEC or SEDAR to be considered for inclusion. Please note that we raised the minimum quarterly revenue in May from US$2.5 million and from US$5.0 million in October.
45 companies currently qualify for inclusion, with 29 filing in U.S dollars and 16 in the Canadian currency, which is the same as when we reported at the end of November.
In May, we began to include an additional metric, “Adjusted Operating Income”, as we detailed in our newsletter. The calculation takes the reported operating income and adjusts it for any changes in the fair value of biological assets required under IFRS accounting. We believe that this adjustment improves comparability for the companies across IFRS and GAAP accounting. We note that often operating income can include one-time items like stock compensation, inventory write-downs or public listing expenses, and we recommend that readers understand how these non-cash items can impact quarterly financials.
One trend we have observed is that many of the companies are now providing pro forma revenue as well, which is an attempt to more accurately portray the operations by taking into account the results of closed and pending acquisitions as the multi-state operator (MSO) space rapidly consolidates. Our rankings include only actual reported revenue.
For companies that report in U.S. dollars, only C21 Investments (CSE: CXXI) (OTC: CXXIF) and cbdMD (NYSE American: YCBD) provided updated financials during December. C21 experienced 7% revenue growth from Q2 to Q3 as it increased its adjusted operating profit to $1.2 million. cbdMD missed expectations of $10.55 million, with sales of $9.5 million in its fiscal Q4 ending in September representing 18% sequential growth. The company reported that this represented pro forma annual growth of 462% for its CBD business.
During January, we expect a report from only KushCo Holdings (OTC: KSHB), which has scheduled a conference call for January 8th after the market closes to discuss the results from its FY2020 Q1. According to Sentieo, analysts project revenue at $41.5 million, which would represent a sequential decline of almost 12% but growth from a year ago of 64%. Following Q4 and taking into account its expectations for decreased vaping-related product sales early in its fiscal year, the company provided FY20 guidance ranging from $230 million to $250 million, including $25 million from its newly launched hemp trading business.
Of the companies that report in Canadian dollars, Fire & Flower (TSX: FAF) (OTC: FFLWF), HEXO Corp (TSX: HEXO) (NYSE: HEXO) and National Access Cannabis (TSXV: META) (OTC: NACNF) provided financial updates during December. Retailer Fire & Flower advanced revenue 24% during its fiscal Q3 compared to the prior quarter, with revenue exceeding expectations. HEXO Corp saw sales dip 6% from its disappointing Q4 during the first quarter of its fiscal year, as the C$14.5 million fell short of the expected C$17.1 million. National Access (dba Meta Growth) experienced flat sequential revenue growth in its fiscal Q4 ending August 31st.
During January, we expect financial updates from LPs Aphria (TSX: APHA) (NYSE: APHA) and Organigram (TSX: OGI) (NASDAQ: OGI) as well as Liberty Health Sciences (CSE: LHS) (OTC: LHSIF). Aphria, which, according to Sentieo, is expected to see revenue expand only slightly from C$126 million in its Q1 to C$130 million in its Q2 ending 11/30, has the vast majority of its revenue generated from outside the cannabis industry, making comparability a challenge. During Q1, pharmaceutical distribution accounted for over 75% of total revenue. Aphria has suggested that it will generate net revenue for the full fiscal year of approximately C$650 million to C$700 million, with distribution revenue representing slightly more than half of the total net revenue. The company will be reporting on January 14th before the market opens. Organigram is expected to deliver Q1 revenue of C$21.3 million, which would represent growth of 31% from Q4 and 71% from a year ago. Finally, Liberty Health Sciences has no estimates available on Sentieo, but it has indicated that its monthly sales at the end of the prior quarter in August exceeded C$4.6 million, suggesting that the company’s revenue should expand significantly from the C$10.6 million reported in Q2.
Visit the Public Cannabis Company Revenue Tracker to track and explore the complete list of qualifying companies. We have recently created a way for our readers to access our library of Revenue Tracker articles. For our readers who are interested in staying on top of scheduled earnings calls in the sector, we have have created and continually update the Cannabis Investor Earnings Conference Call Calendar.
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