These Key Canadian Cannabis Companies Will Be Reporting Financials in January

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 raised the minimum to US$25 million (C$32 million) to qualify for what we are now calling the senior list and introduced a junior list with a minimum of US$12.5 million (C$16.0 million) in September. At the time of our last update in late November, 36 companies qualified for inclusion on the senior list, including 30 filing in U.S. dollars and 6 in the Canadian currency. The junior list now includes 13 reporting in U.S. dollars and 4 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 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.

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, several companies that qualify for the junior list reported, including Harborside (CSE: HBOR) (OTC: HBORF), Cansortium (CSE: TIUM.U) (OTC: CNTMF),  YourWay Cannabis Brands (CSE: YOUR) (OTC: HSTRF) and Flower One Holdings (CSE: FONE) (OTC: FLOOF).

American Dollar Reporting – Public Cannabis Company Revenue Tracker

In January, Tilray (TSX: TLRY) (NASDAQ: TLRY) will be reporting its fiscal Q2 ending in November on January 10th. According to Sentieo, overall revenue for the company is expected to increase just 3% to $173 million, with adjusted EBITDA of $14.3 million. As a reminder, the company’s cannabis business represented only 42% of overall revenue in its Q1, with its pharmaceutical distribution, alcohol business and hemp food products making up the majority. Cronos Group (TSX: CRON) (NASDAQ: CRON), which remains delinquent in its filings from Q3, is expected to report in January as well, with revenue expected to have increased 20% sequentially to $18.7 million.

During December, HEXO Corp (TSX: HEXO) (NASDAQ: HEXO and Fire & Flower (TSX: FAF) (OTC: FFLWD) reported financials. HEXO Corp saw a large jump in revenue sequentially in its fiscal Q1 due to the inclusion of revenue from the recently acquired Redecan, though it was slightly below expectations. Its massive C$155.9 million operating loss included one-time charges in excess of C$88 million. The company reported an adjusted EBITDA of -C$11.6 million, slightly worse than during its Q4. Fire & Flower fiscal Q3 revenue was slightly ahead of expectations. Adjusted EBITDA of C$2.1 million marked the sixth straight quarter of profitability on this basis.

Canadian Dollar Reporting – Public Cannabis Company Revenue Tracker

In January, High Tide (TSXV: HITI) (NASDAQ: HITI), which has exposure to Canadian adult-use cannabis, North American ancillary products and CBD, will report its fiscal Q4 ending in October. According to Sentieo, revenue is expected to increase 8% sequentially to C$52 million with adjusted EBITDA of C$1.4 million. Additionally, Organigram (TSX: OGI) (NASDAQ: OGI), which sits atop the junior list, is expected to see revenue increase 19% sequentially to C$29.6 million with adjusted EBITDA of -C$6.0 million.

For those interested in more information about companies reporting in January, we publish comprehensive earnings previews for subscribers at 420 Investor, including for Focus List members mentioned here, Cronos Group, Organigram and Tilray.

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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