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.
41 companies currently qualify for inclusion, with 26 filing in U.S dollars and 15 in the Canadian currency. Since our last report at the end of May, we have added Canadian retailer Fire & Flower (TSXV: FAF) (OTC: FFLWF). 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.
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 June, there were no financial reports from companies that report in American dollars.
U.S Dollar Reporting – Public Cannabis Company Revenue Tracker
In July, KushCo Holdings (OTC: KSHB), which completed its fiscal Q3 at the end of May, should file by mid-month, though no call is yet scheduled. According to Sentieo, it is expected to generate revenue of $40.4 million, which would be up 15% from its Q2 and 213% from FY18-Q3. The company, which generated $60.5 million revenue in the first half of the fiscal year, has provided guidance for the full year of $140-150 million. Analysts also project EPS of -$0.12.
Of the companies that report in Canadian dollars, Canopy Growth (TSX: WEED) (NYSE: CGC), which has a March fiscal year-end, maintained its leadership position globally with revenue of over C$94 million, which was slightly below expectations. Its adjusted operating income deteriorated from the prior quarter as well to -C$228 million. HEXO Corp (TSX: HEXO) (NYSE American: HEXO) saw a sequential decline in fiscal Q3 sales to C$13 million as its adjusted operating income deteriorated from the prior quarter to -C$17.6 million. Fire & Flower joined the list with revenue of C$9.5 million.
Canadian Dollar Reporting – Public Cannabis Company Revenue Tracker
In July, we expect three reports, including Isodiol International ( CSE: ISOL) (OTC: ISOLF), Organigram (TSXV: OGI) (NASDAQ: OGI) and National Access Cannabis (TSXV: META) (OTC: NACNF). According to Sentieo, Organigram is projected by analysts to have generated revenue in its fiscal Q3 of C$38.1 million, which would be up 18% from its fiscal Q2 and 829% from a year ago. Analysts also expect EPS of C$0.04.
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.
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