Cannabis producer Cresco Labs Inc. (CSE:CL) (OTCQX:CRLBF) (FSE: 6CQ) announced on Wednesday its financial and operating results for the first quarter ended March 31, 2024.

"I want to thank the Cresco team for taking our learnings from the Year-of-the-Core, making them a part of our DNA and producing such a strong start to 2024," said Charles Bachtell, CEO of Cresco Labs. "The continued development of our teams' capabilities and our relentless focus on efficient execution is leading to very strong performance across our retail and branded product business resulting in a 10x increase in operating cash flow year-over-year."

Q1 2024 Financial Highlights

• Revenue totaled $184 million and was flat year-over-year, excluding the impact of strategic divestitures aimed to drive profitability.
• Gross profit amounted to $92 million.
• Adjusted gross profit of $95 million was up 7% year-over-year.
• Adjusted gross margin of 51% of revenue, representing a 580 bps improvement.
• Selling, general and administrative expenses totaled $54 million.
• Reduced adjusted selling, general and administrative expenses by 24% year-over-year to $52 million, or 28% of revenue.
• Income before income taxes totaled $16 million, a net loss of $2 million.
• Adjusted EBITDA came in negative at $53 million, up 82% year-over-year.
• Adjusted EBITDA margin was 29%, representing a 1,380 bps improvement.
• $36 million in operating cash flow up 1,000% year-over-year. $33 million in free cash flow.

Cresco also noted that it has retained a No.1 share position in Illinois, Pennsylvania and Massachusetts.

Bachtell added that Cresco is "fulfilling our vision of being the most important company in cannabis and leading the development of the most responsible, respectable and robust industry possible."

He praised the recently announced potential federal rescheduling of cannabis. At the Benzinga Cannabis Capital Conference in Florida last month, Bachtell shared optimistic views on cannabis rescheduling, emphasizing the importance of the process it's undergoing.

"This is going through the process it needs to... it's a matter of when," Bachtell said at the time.

The 19th Benzinga Cannabis Capital Conference is returning to Chicago this Oct. 8-9. Get your tickets now before prices surge by following this link.

CRLBF Price Action

Cresco's shares traded 0.50% higher at $2.02 per share after the market close on Tuesday.