Leading Cannabis Public Company Revenue Generator List Expands to 43 in July

The Public Cannabis Company Revenue Tracker, managed by New Cannabis Ventures, ranks the top revenue producing cannabis stocks that generate industry sales of more than US$5.0 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.

43 companies currently qualify for inclusion, with 27 filing in U.S dollars and 16 in the Canadian currency. Since our last report at the end of June, we have added multi-state operator C21 Investments (CSE: CXXI) (OTC: CXXIF) and Canadian LP Valens GroWorks (TSXV: VGW) (OTC: VGWCF). We expect to add more companies in the coming months. We are not able to include Elixinol Global (ASX: EXL) (OTC: ELLXF) and Greenlane (NASDAQ: GNLN), which would otherwise qualify but don’t break out their cannabis-related revenue. We also note that Scotts Miracle-Gro (NYSE:SMG) derives substantial cannabis-related revenue through its Hawthorne Gardening operations, but we are unsure of the exact amount and, thus, aren’t including it at this time.

In May, we began to include an additional item, “Adjusting 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.

In July, there were two financial reports from companies that report in American dollars, including KushCo Holdings (OTC: KSHB) and C21 Investments. KushCo, which had been expected to generate Fy19-Q3 sales of $40.4 million, reported revenue of $41.5 million and increased its guidance for the fiscal year ending August 31 to $145-150 million from the prior range of $140-150 million. C21 Investments joined the list with quarterly sales of $7.8 million for the quarter ended April 30th in the Nevada and Oregon markets.

American Dollar Reporting – Public Cannabis Company Revenue Tracker

In August, almost every company we rank will be reporting, and we will provide an update mid-month and after the month ends. Among the companies reporting in the first half of August, GW Pharma (NASDAQ: GWPH), Columbia Care (NEO: CCHW) (OTC: CCHWF) and CV Sciences (OTC: CVSI) report on the 6th, Innovative Industrial Properties (NYSE: IIPR) reports on the 7th, GrowGeneration (OTC: GRWG) reports on the 8th, Acreage Holdings (CSE: ACRG.U) (OTC: ACRGF and Tilray (NASDAQ: TLRY) report on the 13th, and Charlotte’s Web (TSX: CWEB) (OTC: CWBHF) reports on the 14th. According to Sentieo, GW Pharma revenue is expected to expand to $47 million,  Charlotte’s Web sales are expected to be about $27.5 million, and analysts project Tilray sales at $41 million, tough this includes a substantial amount of hemp-food revenue.

Of the companies that report in Canadian dollars, Organigram (TSXV: OGI) (NASDAQ: OGI) fiscal Q3 sales fell short of expectations at C$24.8 million, declining 8% from the prior quarter due to ordering patterns by its provincial customers. The company posted an adjusted operating income of C$1.2 million. National Access Cannabis (TSXV: META) (OTC: NACNF) grew revenue slightly from its fiscal Q2, with Q3 sales for the quarter ending 5/31 topping C$17 million. The vast majority were from the sale of cannabis and cannabis accessories, with a small amount generated by its clinic operations.

Canadian Dollar Reporting – Public Cannabis Company Revenue Tracker

In August, we will see several filings, with a few in the first half, including Aphria (TSX: APHA) (NYSE: APHA) reporting on August 1st and Canopy Growth (TSX: WEED) (NYSE: CGC) reporting on August 14th (with a call the next morning). Sentieo consensus for the company suggests FY20-Q1 revenue will increase 16% from Q4 to C$109 million. EPS are expected to be -C$0.38. CannTrust (TSX: TRST) (NYSE: CTST) is also expected to file financials by the 14th.  Isodiol International ( CSE: ISOL) (OTC: ISOLF) is delinquent in reporting its financials for the quarter and year ending March 31.

Visit the Public Cannabis Company Revenue Tracker to track and explore the complete list of qualifying companies. For our readers who are interested in staying on top of scheduled earnings calls in the sector, we have recently introduced the Cannabis Investor Earnings Conference Call Calendar.

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