The Public Cannabis Company Revenue & Income Tracker, managed by New Cannabis Ventures, ranks the top revenue producing cannabis companies. December and January were a slow period for reporting, and February saw a pickup that we detail below. March will be a lot busier.
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$34.0 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$17.0million) 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, Jazz Pharma (NASDAQ: JAZZ) and Tilray (TSX: TLRY) (NASDAQ: TLRY) aren’t providing this information. Please note as well that we updated how we are handling Canopy Growth (TSX: WEED) (NASDAQ: CGC), now excluding the non-cannabis revenue of BioSteel.
Tracker Inclusion Updates
At the time of our last update on January 25th, 39 companies qualified for inclusion on the senior list, including 31 filing in U.S. dollars and 8 in the Canadian currency. Currently, 30 companies that file in U.S. dollars qualify and 8 that file in Canadian dollars are qualifying for the senior lists, a total of now 38. The junior list now includes 8 companies reporting in U.S. dollars and 3 in Canadian dollars. On a combined basis, the Public Cannabis Company Revenue & Income Tracker now includes 49 companies.
iPower (NASDAQ: IPW) fell out of the senior group to the junior group when its revenue fell 26% sequentially in its Q1. We expect to add additional companies in the months ahead, and, due to pending or recently completed mergers, we anticipate some removals as well. We note that Intercure (TASE: INCR) (NASDAQ: INCR), which reports in the Israeli currency, qualifies for the junior list, but we haven’t yet added it due to its different reporting currency.
Included Companies That Reported in February
Since our last update, there haven’t been many companies that have reported, and we had no new additions to the rankings.
Senior – American Dollar Reporting
Scotts Miracle-Gro (NYSE: SMG) reported during the month, and its cannabis operations, Hawthorne Gardening, were quite weak. Hawthorne revenue fell sharply, and the company lowered its outlook for FY23. Turning Point Brands (NASDAQ: TPB) saw its Zig-Zag product sales in Q4 fall 11% from a strong Q3.
Green Thumb Industries (OTC: GTBIF) (CSE: GTII) has scheduled its release and a call for 2/28. The company is expected, according to the consensus calculated by Sentieo, to see Q4 revenue slip 2% sequentially to $257 million, up 5% from a year ago. Analysts project adjusted EBITDA will increase 6% from a year ago to $80 million. Trulieve (OTC: TCNNF) (CSE: TRUL), which reports on March 8th, is expected to see revenue flat from a year ago at $306 million with adjusted EBITDA of $98 million. Ayr Wellness (OTC: AYRWF) (CSE: AYR.A) reports on March 9th and is expected to see revenue increase 15% from a year ago to $129 million with adjusted EBITDA of $24 million. Ascend Wellness (OTC: AAWH) (CSE: AAWH.U), which reports on March 14th, is expected to generate $114 million revenue during Q4. This would be a gain of 29% from a year ago. Adjusted EBITDA is expected to increase 47% to $29 million.
REIT Innovative Industrial Properties (NYSE: IIPR) will release its Q4 financials on Monday afternoon and will host a call on Tuesday. Analysts expect revenue to slip from Q3 to $69 million, up 17% from a year ago. They forecast that Adjusted Funds From Operations (AFFO) will be $2.02 per share, down from $2.13 during the prior quarter. WM Technology (NASDAQ: MAPS) is expected to report Q4 revenue of $48 million, down 12% from a year ago, with adjusted EBITDA of -$9 million. Village Farms (NASDAQ: VFF) is expected to grow overall revenue -3% to $71 million with adjusted EBITDA of -$1 million.
Junior – American Dollar Reporting
The iPower report was the only one for this group during February.
Cronos Group (NASDAQ: CRON) (TSX: CRON) reports Tuesday morning. The company is projected to generate Q4 revenue of $24 million, up sequentially but down 8% from a year ago. On March 9th, REIT Chicago Atlantic is expected to report Q4 revenue of $14 million, up 141% from a year ago.
Senior and Junior – Canadian Dollar Reporting
High Tide (NASDAQ: HITI) (TSXV: HITI) reported its Q4 near the end of January. The large adjusted operating income loss was related to a large impairment charge. Canopy Growth (NASDAQ: CGC) (TSX: WEED) reported below expectations for its Q3. The sales we post exclude BioSteel revenue. Aurora Cannabis (NASDAQ: ACB) (TSX: ACB) posted ahead of expectations. Among the junior companies, Humble & Fume (OTC: HUMBF) (CSE: HUMB) reported.
High Tide will report its Q1 on March 17th and host a call on the 20th, and it is expected to to see revenue increase 53% to C$110 million with adjusted EBITDA of C$5 million. HEXO Corp (NASDAQ: HEXO) (TSX: HEXO) Q2 financials are due in March, with the company expected to see revenue decline 32% to C$36 million with adjusted EBITDA of -C$1 million.
Stay up to date
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