Leading Publicly Traded Cannabis Companies Post Strong Revenue Growth in June Quarter

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, and we anticipate a further increase from US$5.0 million at the end of September.

54 companies currently qualify for inclusion, with 33 filing in U.S dollars and 21 in the Canadian currency, which is up from 49 just two weeks ago. Since our last report in mid-August, the new additions include U.S. dollar reporting companies Harborside (CSE: HBOR) (OTC: HSDEF), Indus Holdings (CSE: INDS) (OTC: INDXF) and Vapen MJ (CSE: VAPN) (OTC: VAPNF) and Canadian dollar reporters, including Canadian LPs Delta 9 Cannabis (TSXV: DN) (OTC: VRNDF) and WeedMD (TSXV: WMD) (OTC: WDDMF),  ancillary services provider 3 Sixty Secure (CSE: SAFE) (OTC: SAYFF) and CPG company SLANG Worldwide (CSE: SLNG) (OTC: SLGWF). We also removed Canadian dollar reporters Isodiol International (CSE: ISOL) (OTC: ISOLF) and Sunniva (CSE: SNN) (OTC: SNNVF) after both reported quarters that were below the minimum qualifying level. 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 metric, “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 the back half of August, there were 12 financial reports from companies that report in American dollars, including, among those above $15 million in revenue, Curaleaf Holdings (CSE: CURA) (OTC: CURLF), Green Thumb Industries (CSE: GTII) (OTC: GTBIF), TILT Holdings (CSE: TILT) (OTC: SVVTF), Cresco Labs (CSE: CL) (OTC: CRLBF), iAnthus Capital (CSE: IAN) (OTC: ITHUF) and Planet 13 Holdings (CSE: PLTH) (OTC: PLNHF). The sequential revenue growth for these six companies averaged 45%. Curaleaf fell just short of expectations, while GTI beat analyst estimates as it reported positive adjusted EBITDA. While only Planet 13 of the six was able to report a positive adjusted operating income, GTI and Cresco improved from Q1.

American Dollar Reporting – Public Cannabis Company Revenue Tracker

One company that didn’t meet the deadline for August is DionyMed Brands (CSE: DYME) (OTC: DYMEF), which anticipates, according to its CFO, that it will release its financials later today. In September, we expect to see Financials from C21 Investments (CSE: CXXI) (OTC: CXXIF).

Of the companies that report in Canadian dollars, Origin House (CSE: OH) (OTC: ORHOF) and TerrAscend (CSE: TER) (OTC: TRSSF) were the only ones that reported in excess of C$15 million, with the four additions to the list all below C$9 million. TerrAscend upped its full-year guidance to C$141 million from C$135 million.

Canadian Dollar Reporting – Public Cannabis Company Revenue Tracker

In September, companies expected to report financials include Supreme Cannabis (TSX: FIRE) (OTC: SPRWF), which has announced the date already (9/17), as well as Aurora Cannabis (TSX: ACB) (NYSE: ACB) and Fire & Flower (TSX: FAF) (OTC: FFLWF). We note that CannTrust (TSX: TRST) (NYSE: CTST) missed its Q2 filing deadline in mid-August. Supreme pre-announced Q4 revenue of approximately C$19 million and gave preliminary guidance for its fiscal 2020 for sales of C$150-180 million. According to Sentieo, Aurora Cannabis is projected to report Q4 revenue of C$106 million. The company pre-announced Q4 cannabis revenue of $90-95 million on August 6th, which could put it at the top of the list of companies that report in Canadian dollars.

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.

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

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