New Cannabis Ventures Expands Revenue Ranking to Reflect Rapid Industry Growth

The Public Cannabis Company Revenue & Income Tracker, managed by New Cannabis Ventures, ranks the top revenue producing cannabis companies. 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 are raising the minimum to US$25 million (C$31 million) to qualify for what we are now calling the senior list and introducing a junior list with a minimum of US$12.5 million (C$15.5 million). At the time of our last update in mid-August, 44 companies qualified for inclusion, including 36 filing in U.S. dollars and 8 in the Canadian currency. With the higher minimum, a total of 35, including 31 filing in U.S. dollars and 4 in the Canadian currency, qualify for the senior list. The junior list includes 12 reporting in U.S. dollars and 6 in Canadian dollars. On a combined basis, the Public Cannabis Company Revenue & Income Tracker includes 53 companies. We expect to add additional companies in the months ahead, and, due to pending mergers, we anticipate some removals as well.

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.

Since our last update, Ayr Wellness (CSE: AYR.A) (OTC: AYRWF), The Parent Company (NEO: GRAM.U) (OTC: GRAMF), TerrAscend (CSE: TER)(OTC: TRSSF), TILT Holdings (NEO: TILT) (OTC: TLLTF), Jushi Holdings (CSE: JUSH) (OTC: JUSHF), Greenlane (NASDAQ: GNLN), Planet 13 Holdings (CSE: PLTH) (OTC: PLNHF), 4Front Ventures (CSE: FFNT) (OTC: FFNTF) and GAGE Growth (CSE: GAGE) (OTC: GAEGF) all reported Q2 financials.

With the addition of the junior list, we now include Glass House Brands (NEO:GLAS.A.U) (OTC: GLASF) Flower One Holdings (CSE: FONE) (OTC: FLOOF), Goodness Growth Holdings, (CSE: GDNS) (OTC: GDNSF),  iPower (NASDAQ: IPW) and urban-gro (NASDAQ: UGRO), which were previously not part of the rankings.

American Dollar Reporting – Public Cannabis Company Revenue Tracker

The only company reporting in September will be MedMen (CSE: MMEN) (OTC: MMNFF), which has scheduled a call on the 23rd to discuss its Q4 results.

Canadian Dollar Reporting – Public Cannabis Company Revenue Tracker

No companies that report in Canadian dollars on the senior list provided financial updates since our last summary, though Auxly Cannabis (TSX: XLY) (OTC: CBWTF) and Delta 9 Cannabis (TSX: DN) (OTC: DLTNF) now qualify for the junior list.

During September, Aurora Cannabis (TSX: ACB) (NASDAQ: ACB) will report its fiscal Q4 ending in June. Retailers Fire & Flower (TSX: FAF) (OTC: FFLWF) and High Tide (TSXV: HITI) (NASDAQ: HITI) will report quarterly financials. According to Sentieo, analysts expect Aurora Cannabis sales to decline 16% to C$61 million, with adjusted EBITDA of -C$15 million. Fire and Flower revenue is expected to increase 59% to C$46 million, with adjusted EBITDA of C$2 million. High Tide is expected to increase revenue by 99% to C$46 million, with adjusted EBITDA of C$5 million.

For those interested in more information about companies reporting in August, we publish comprehensive earnings previews for subscribers at 420 Investor, including for Focus List members mentioned here, Aurora Cannabis and Fire & Flower.

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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