The Public Cannabis Company Revenue & Income Tracker, managed by New Cannabis Ventures, ranks the top revenue producing cannabis companies. This update is our first since late August, and there will be many financial releases very soon.
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. When we launched this resource in May 2019, companies with quarterly revenue in excess of US$2.5 million qualified. As the industry has scaled and as more companies have gone public, we have raised the minimum several times subsequently, including a move to US$5 million in October 2019, to US$7.5 million in June 2020, to US$10 million in November 2020 and US$12.5 million in August 2021. Due to the rapid growth in the cannabis industry, we raised the minimum to US$25 million (C$34.3 million) to qualify for what we now call the senior list and introduced a junior list with a minimum of US$12.5 million (C$17.1 million) in September 2021.
A Note About Adjusted Operating Income
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 have their operating profit included in the tracker. Currently, Canopy Growth (TSX: WEED) (NASDAQ: CGC), Jazz Pharma (NASDAQ: JAZZ) and Tilray (TSX: TLRY) (NASDAQ: TLRY) aren’t providing this information.
Tracker Inclusion Updates
At the time of our last update on August 20th, 35 companies qualified for inclusion on the senior list, including 28 filing in U.S. dollars and 7 in the Canadian currency. Currently, 29 companies that file in U.S. dollars qualify and 6 that file in Canadian dollars are qualifying for the senior lists, a total still of 35. The junior list now includes 12 companies reporting in U.S. dollars and 5 in Canadian dollars. On a combined basis, the Public Cannabis Company Revenue & Income Tracker now includes 52 companies. Since late August, Fire & Flower, which went bankrupt and was liquidated, was removed from the senior list in Canada. In America, StateHouse (CSE: STHZ) (OTC: STHZF) moved from the junior list to the senior list, and POSaBit (CSE: PBIT) (OTC: POSAF) returned to the junior list.
Included Companies That Reported since August
Since our last update, there have not been many companies that have reported. One that did report was Tilray, which saw its cannabis-related revenue increase 9% sequentially in its Q1.
Senior and Junior – American Dollar Reporting
Looking ahead, many companies will be providing quarterly updates beginning November 1st. The very largest revenue-generators have all scheduled calls for November 8th and 9th. Curaleaf (CSE: CURA) (OTC: CURLF) is expected by analysts, according to Sentieo, to see Q3 revenue flat to a year ago at $340 million with adjusted EBITDA of $75 million, down 10%. Trulieve (CSE: TRUL) (OTC: TCNNF) is projected to have experienced a 10% decline in its Q3 revenue to $269 million with adjusted EBITDA of $72 million, down 27%. Analysts expect Green Thumb Industries (CSE: GTII) (OTC: GTBIF) to grow revenue -2% to $257 million with adjusted EBITDA falling 10% to $76 million. They project that Verano (NEO: VRNO) (OTC: VRNOF) will experience 5% growth in revenue to $240 million as adjusted EBITDA declines 9% to $75 million.
Senior and Junior – Canadian Dollar Reporting
In Canada, High Tide (TSXV: HITI) (NASDAQ: HITI) grew cannabis revenue by 5% sequentially and by 33% from a year ago, posting a small operating loss.
The upcoming earnings reports will include some of these too. None of these has quarterly revenue in excess of C$100 million yet, and we will defer on sharing any analyst outlooks here.
Stay up to date
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 created and continually update the Cannabis Investor Earnings Conference Call Calendar.