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$12.5 million per quarter (C$15.7 million). 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 and be current to be considered for inclusion. Please note that we have raised the minimum quarterly revenue several times as the industry has scaled up, including from US$10.0 million in November 2020, US$7.5 million in June 2020, US$5.0 million in October 2019 and US$2.5 million in May 2019.
41 companies currently qualify for inclusion, with 29 filing in U.S. dollars and 12 in the Canadian currency, which is up by 3 from our update a few weeks ago. Joining the list were 4Front Ventures (CSE: FFNT) (TSX: FFNTF), Alcanna (TSX: CLIQ) (OTC: LQSIF) and Hydrofarm (NASDAQ: HYFM). 4Front transitioned to U.S. GAAP accounting, which allowed a higher level of revenue to be recognized that resulted in its Q3 revenue qualifying for inclusion.
In May 2019, we added 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. Many companies are moving from IFRS to U.S. GAAP accounting, which will reduce our need to make adjustments. Please note that our rankings include only actual reported revenue, and not pro forma revenue. We also note that companies with non-cannabis operations must provide segment-level financial reports that detail not only revenue but also operating profit to be included in the tracker.
Extending upon the solid results of several peers that reported earlier in March, the companies reporting over the balance of the month generally met or exceeded expectations. Trulieve (CSE: TRUL) (OTC: TCNNF), which had been expected to expand revenue 19% sequentially, reported 28% growth. Cresco Labs (CSE: CL) (OTC: CRLBF), which had been expected to generate 5% sequential growth, expanded it by 6%. Harvest Health and Recreation (CSE: HARV) (OTC: HRVSF) beat expectations of 8% sequential growth, delivering an increase of 13%. GrowGeneration (NASDAQ: GRWG) beat its own pre-announced level slightly and raised its 2021 outlook dramatically, with the company now projecting sales of $415-430 million. Greenlane (NASDAQ: GNLN) revenue was in line with expectations, while Charlotte’s Web (TSX: CWEB) (OTC: CWBHF) was slightly lower than expected with adjusted EBITDA slightly better than expected.
In April, several CSE-listed companies that haven’t yet adopted U.S. GAAP accounting will be reporting their Q4 results, including 4Front, Cansortium (CSE: TIUM.U) (OTC: CNTMF), Harborside (CSE: HBOR) (OTC: HBORF), Jushi Holdings (CSE: JUSH) (OTC: JUSHF), Planet 13 Holdings (CSE: PLTH) (OTC: PLNHF) and TILT Holdings (CSE: TILT) (OTC: TLLTF). Additionally, KushCo Holdings (OTC: KSHB) will report its fiscal Q2 ending 2/28 on 4/8.
According to Sentieo, TILT Holdings is expected by the two analysts covering it to show modest growth, with revenue expanding 4% sequentially to $41.9 million. Its adjusted EBITDA is expected to improve from $2.8 million to $5.3 million. KushCo Holdings is expected to generate revenue of $32.8 million, up 23% sequentially and 9% from a year ago. Its adjusted EBITDA is expected to be $0.6 million. The company hiked its FY21 outlook last quarter, providing guidance for revenue of $130-160 million with adjusted EBITDA of $5-7 million. Jushi Holdings has provided guidance of $28-30 million revenue, with adjusted EBITDA of $4-5 million. Additionally, it has provided guidance for 2021, expecting to generate revenue of $205-255 million with adjusted EBITDA of $40-50 million. Analysts expect Q4 revenue will increase 24% sequentially to $30.8 million, with adjusted EBITDA of $2.8 million. Planet 13 Holdings is expected to see modest sequential growth in revenue, with analysts forecasting $23.1 million, up 40% from a year ago, with adjusted EBITDA of $6 million.
In the back part of March, Alcanna, TerrAscend (CSE: TER) (OTC: TRSSF), High Tide (TSXV: HITI) (OTC: HITIF) and Zenabis (TSX: ZENA) (OTC: ZBISF) reported financials. TerrAscend, which will be moving to U.S. GAAP accounting and filing with the SEC in American dollars going forward, had pre-announced its revenue, which grew 28% sequentially to C$65 million, and adjusted EBITDA, which grew 46% sequentially to C$26 million, producing a margin of 40% . High Tide fiscal Q1 results, which included a full contribution from the recently acquired META Growth, expanded 54% sequentially, with the company reporting an adjusted EBITDA of $4.6 million. Alcanna’s Q4 cannabis revenue grew 8% sequentially, with the operating segment breaking even. During March, the company spun out its cannabis operations, and we will be reporting its results. Due to the timing of the close of the merger, the company will likely not qualify for inclusion following Q1. Zenabis barely managed to stay on the list as it saw sales slip 16% sequentially.
During April, Aphria (TSX: APHA) (NASDAQ: APHA), Organigram (TSX: OGI) (NASDAQ: OGI) and Valens Company (TSX: VLNS) (OTC: VLNCF) will report financials for the quarter ending 2/28, while Fire & Flower (TSX: FAF) (OTC: FFLWF) will report results for its fiscal year ending on 2/1. Analysts expect Aphria’s fiscal Q3 revenue, which includes cannabis and extensive non-cannabis sales, to increase 9% sequentially to C$174 million, 21% above year-ago levels. Adjusted EBITDA is expected to increase to C$16.5 million from C$12.6 last quarter. Organigram fiscal Q2 revenue is expected to increase 5% sequentially to C$20.2 million, down 13% from a year ago. Fire & Flower is expected to have generated C$38 million revenue in its fiscal Q4, up 15% sequentially and 126% compared to a year ago. Adjusted EBITDA is expected to be $1 million. Valens fiscal Q1 revenue is expected to jump 30% sequentially to C$20.8 million, down 35% from the record quarter a year ago. The company has provided guidance that revenue will be between C$19 million and C$23 million. Adjusted EBITDA is expected to improve from -C$4.3 million to -C$1.8 million.
For those interested in more information about companies reporting in April, we publish comprehensive earnings previews for subscribers at 420 Investor, including for Focus List members Aphria, Fire & Flower, Flower One, Harborside, KushCo Holdings, Organigram and Planet 13 Holdings.
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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