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$7.5 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 from US$5.0 million in October.
45 companies currently qualify for inclusion, with 29 filing in U.S dollars and 16 in the Canadian currency, which is up from 43 when we reported in mid-November due to three additions, including 4Front Holdings (CSE: FFNT) (OTC: FFNTF), Green Growth Brands (CSE: GGB) (OTC: GGBXF) and Vireo Health (CSE: VREO) (OTC: VREOF), and the removal of DionyMed Brands, which is delinquent after going into receivership during the month.
In May, we began to include 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.
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.
For companies that report in U.S. dollars, the financial reports were quite strong. Trulieve (CSE: TRUL) (OTC: TCNNF) retained its leadership among MSOs, with Q3 sales exceeding expectations by growing 150% from year-ago levels as the company reported an adjusted operating profit in excess of $23 million. GTI (CSE: GTII) (OTC: GTBIF) also surpassed expectations as its revenue soared 296% from a year ago and 52% from Q2 on the back of a full quarter with the operations of Essence in Nevada as well as expanded production capacity in Pennsylvania. Curaleaf (CSE: CURA) (OTC: CURLF) missed the analyst forecast but posted strong growth of 189% as it trimmed its adjusted operating loss by $1.3 million. TILT Holdings (CSE: TILT) (OTC: TLLTF) moved up the ranks with it’s 18% sequential growth in revenue in Q3 as its operating loss fell sharply. MedMen (CSE: MMEN) (OTC: MMNFF) experienced only 5% sequential growth during its fiscal Q1, but its adjusted operating loss declined by 16%. Cresco Labs (CSE: CL) (OTC: CRLBF) grew Q3 revenue by 184% from a year ago and 23% sequentially. Harvest Health & Recreation (CSE: HARV) (OTC: HRVSF) had robust sales growth but expanded its adjusted operating loss from $26.8 million to $34.5 million. The final company to crack $25 million that reported in the back half of the month was Ayr Strategies (CSE: AYR) (OTC: AYRSF), which saw quarterly sales nearly triple as the operating loss expanded by $2 million.
During December, we expect reports from only C21 Investments (CSE: CXXI) (OTC: CXXIF) and cbdMD (NYSE American: YCBD). According to Sentieo, cbdMD is expected to have generated Q4 revenue of $10.55 million, which would represent sequential growth of 31%, a performance that would stand out among its peer group, which saw sales slip in general due to a hyper-competitive environment.
Of the companies that report in Canadian dollars, TerrAscend (CSE: TER) (OTC: TRSSF), which had pre-announced its Q3 sales at C$26.3 million, came in slightly ahead as it grew sales sequentially by 53%. Origin House (CSE: OH) (OTC: ORHOF), in what will likely be its last stand-alone quarterly filing due to its pending merger with Cresco Labs, grew revenue sequentially by 6% as its adjusted operating loss declined from C$19.6 million. Finally, Organigram (TSX: OGI) (NASDAQ: OGI) reported in line with its pre-announcement, with sales declining sequentially as it reported its first adjusted operating loss in more than a year, extending upon a series of weak reports from Canadian LPs.
During December, we expect a financial update from Fire & Flower (TSX: FAF) (OTC: FFLWF), which, according to Sentieo, is expected to see revenue expand to C$12.5 million during its fiscal Q3, and HEXO Corp (TSX: HEXO) (NYSE: HEXO), which is expected to see see fiscal Q1 revenue grow sequentially by 11% to C$17.1 million. The company provided guidance in late October that revenue would be in the range of C$14-18 million. National Access Cannabis (TSXV: META) (OTC: NACNF) is expected to report financials for its fiscal Q4 ending 8/31 as well.
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.