Cannabis Companies Kickoff 2021 With Strong Q1 Financial Results

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$15.5 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.

44 companies currently qualify for inclusion, with 35 filing in U.S. dollars and 9 in the Canadian currency, which is up from 41 when we reported a few weeks ago. We added  five names that report in American dollars, including Verano Holdings (CSE: VRNO) (OTC: VRNO), Ascend Wellness (CSE: AAWH.U), The Parent Company (NEO: GRAM.U) (OTC: GRAMF), Schwazze (OTC: SHWZ) and Vireo Health (CSE: VREO (OTC: VREOF). We removed Supreme Cannabis (TSX: FIRE) (OTC: SPRWF) and Zenabis (TSX: ZENA) (OTC: ZBISF) due to their revenue level slipping below the minimum. Note as well that TerrAscend (CSE: TER) (OTC: TRSSF) moved from being a Canadian dollar reporter to American dollars. Also, we have left Aphria in the Canadian section for now, but we will remove it when Tilray (NASDAQ: TLRY) reports in July. Additionally, we have left GW Pharma in the American dollar reporting section and will remove it or replace it with its acquirer, Jazz Pharmaceutical (NASDAQ: JAZZ), depending upon how they break out its financial performance.

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.

Since our last update, several companies that report in American dollars provided quarterly financials, including, among the largest revenue-generating companies, Scotts Miracle-Gro (NYSE: SMG), Curaleaf Holdings (CSE: CURA) (OTC: CURLF), Green Thumb Industries (CSE: GTI) (OTC: GTBIF), Trulieve (CSE: TRUL) (OTC: TCNNF), GW Pharma, Verano Holdings (CSE: VRNO) (OTC: VRNOF) and Hydrofarm (NASDAQ: HYFM), all of which reported revenue in excess of $100 million. The reports of these companies and others that have reported showed how the industry is scaling, which we discussed in our most recent weekly newsletter.

American Dollar Reporting – Public Cannabis Company Revenue Tracker

While most of the reports are behind us, several more companies will be reporting over the balance of the month. Among the companies generating the highest levels of revenue that are expected to report during the rest of May are Cresco Labs (CSE: CL) (OTC: CRLBF), Ayr Wellness (CSE: AYR.A) (OTC: AYRWF) and TILT Holdings (CSE: TILT) (OTC: TLLTF).

According to Sentieo, Cresco Labs revenue is expected to grow 156% to $170 million, up 5% sequentially. Ayr Wellness is expected to generate revenue of $56 million, up 66% compared to a year ago. TILT Holdings is expected to increase its revenue by 5% compared to a year ago, reaching $44 million.

In May, Aurora Cannabis (TSX: ACB) (NYSE: ACB) reported a large and surprising decline in revenue, which had been forecast to be C$71.3 million. The weakness was the result of its adult-use business, which declined more than 50%. Tilray and Cronos Group, included among the companies above that report in American dollars, also disappointed investors with their financial reports that were marred by weakness in adult-use.

Canadian Dollar Reporting – Public Cannabis Company Revenue Tracker

On June 1st, the largest Canadian LP, Canopy Growth (TSX: WEED) (NASDAQ: CGC) will report its fiscal Q4 ending 3/31. According to Sentieo, the company will increase revenue by 44% compared to a year ago and 1% sequentially to C$155 million. Adjusted EBITDA is expected to improve to -C$64 million compared to -C$68 million in its fiscal Q3.

For those interested in more information about companies reporting in May, we publish comprehensive earnings previews for subscribers at 420 Investor, including for Focus List members Canopy Growth, Cresco Labs and TILT 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.

Get ahead of the crowd by signing up for 420 Investor, the largest & most comprehensive premium subscription service for cannabis traders and investors since 2013.

Exclusive article by Alan Brochstein, CFA
Alan Brochstein, CFA
Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email

Get Our Sunday Newsletter