Cresco Labs delivers strong quarter, maintains market leadership and unlocks new growth opportunities
CHICAGO – (BUSINESS WIRE) – Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) (FSE: 6CQ) (“Cresco Labs” or the “Company”), an industry leader in branded cannabis products with a portfolio of some of America’s most popular brands and operator of Sunnyside dispensaries, today announced its financial and operating results for the third quarter ended September 30 of this year. GAAP and in U.S. dollars unless otherwise noted and is available on the Company’s investor website here.
Highlights of the third quarter of 2025
Third quarter revenue: $165 million. Third quarter operating cash flow: $6 million.
Gross profit: $79 million. Adjusted gross profit¹ $80 million; and adjusted gross margin¹ of 48.8%.
SG&A $52 million or 31.3% of revenue.
The net loss of $22 million includes a $16 million loss related to debt repayments related to the refinancing of the Company’s senior secured term loan and a $2 million non-cash impairment charge related to the California assets held for sale.
Third quarter adjusted EBITDA¹ of $40 million and adjusted EBITDA margin¹ of 24.1%.
Maintained #1 stock position in multi-billion dollar markets
Management Commentary
“In Q3, we refinanced our debt and strengthened our balance sheet, delivering solid results and maintaining leadership in key markets through disciplined execution. Our proven retail and wholesale capabilities continue to drive profitability, while new dispensaries in Ohio, expansion into Kentucky, and our upcoming product launch in Germany open the way for growth. Labs to Outperform the Market and Create Sustainable Shareholder Value”.
“The cannabis industry is entering a new phase of growth and consolidation, and Cresco Labs is poised to lead the way. Operators with scale, efficiency and discipline will define the next chapter. Leveraging our core assets and operational excellence, we are building a new growth platform designed to create long-term value, both within and beyond the regulated U.S. regulatory framework.”
Balance sheet, liquidity and other financial information
On August 13, 2025, the Company closed a refinancing of its senior secured term loan to reduce total debt and extend the maturity of the debt to 2030. The $325 million senior secured term loan bears interest at 12.5% per annum and matures on August 13, 2030. repay the Company’s previous $360 million loan.
As of September 30, 2025, current assets were $243 million, including cash, cash equivalents and restricted cash of $79 million. An additional $3 million of restricted cash was classified as a non-current asset. The Company had $309 million of senior secured term loan debt, net of discount and issuance costs, and $18 million of mortgage debt, net of discount and issuance costs.
Total shares outstanding on a fully converted basis were 490,889,023 subordinate voting shares as of September 30, 2025.
¹See “Non-GAAP Financial Measures” at the end of this press release for additional information on the Company’s use of non-GAAP financial measures.
²According to Hoodie Analytics.
Conference call and webcast
The Company will hold a conference call and webcast to discuss its financial results on Wednesday, November 5, 2025 at 8:30 a.m. Eastern Time (7:30 a.m. Central Time). The conference call can be accessed via webcast or by dialing 1-833-470-1428 (US toll-free) or 1-646-844-6383 (US local) and providing access code 307245. Archived access to the webcast will be available for one year on Cresco Labs’ investor website here.
Consolidated Financial Statements
The financial information presented in this press release is based on unaudited management prepared financial statements for the quarter ended September 30, 2025. These financial statements have been prepared in accordance with US GAAP. The Company expects to file its unaudited condensed interim consolidated financial statements for the quarter ended September 30, 2025 on SEDAR+ and EDGAR on or about November 7, 2025. Accordingly, such financial information may be subject to change. All financial information contained in this press release is qualified in its entirety by reference to such financial statements. Although the Company does not expect any material changes to occur between this press release and the consolidated financial statements it files on SEDAR+ and EDGAR, to the extent the financial information contained in this press release is inconsistent with information contained in the Company’s financial statements, the financial information contained in this press release is deemed to be amended or superseded by the financial statements. The preparation of an amended or superseded statement shall not be deemed an admission, for any purpose, that the amended or superseded statement, when made, is misleading for purposes of applicable securities laws. Further, the reader should refer to the additional disclosures in the Company’s audited financial statements for the year ended December 31, 2024, which are filed on SEDAR+ and EDGAR.
Cresco Labs refers to certain non-GAAP financial measures throughout this press release that may not be comparable to similar measures presented by other issuers. Please see the Non-GAAP Financial Measures section below for more detailed information.
Non-GAAP financial measures
This release presents its financial results in accordance with US GAAP and includes certain non-GAAP financial measures that do not have standardized definitions in accordance with US GAAP. Non-GAAP measures include: Adjusted EBITDA; Adjusted EBITDA margin; Adjusted gross profit; Adjusted gross profit margin; Adjusted selling, general and administrative expenses (“Adjusted SG&A”), Adjusted SG&A margin; and Free Cash Flow are non-GAAP financial measures and do not have standardized definitions under US GAAP. The Company defines these non-GAAP financial measures as follows: Adjusted EBITDA as EBITDA less other (expense) income, net, fair value measurement for acquired inventory, adjustments for acquisition and non-core costs, impairment and stock-based compensation; Adjusted EBITDA margin as Adjusted EBITDA divided by revenues, net; Adjusted gross profit as gross profit less fair value valuation of inventory acquired and adjustments to acquisition and non-core costs; Adjusted gross profit margin as adjusted gross profit divided by revenues, net; Adjusted SG&A as SG&A less adjustments for acquisition and non-core costs; Adjusted SG&A margin as adjusted SG&A divided by revenues, net; and Free cash flow as net cash provided by operating activities, less purchases of property and equipment and income from tenant improvement benefits. The Company has provided non-GAAP financial measures that are not calculated or presented in accordance with US GAAP as additional information and in addition to financial measures calculated and presented in accordance with US GAAP, which may not be comparable to similar measures presented by other issuers. These additional non-GAAP financial measures are presented because management has evaluated the financial results, both including and excluding adjusted items, and believes that the additional non-GAAP financial measures presented provide additional perspective and insight in analyzing the underlying operating performance of the business. These additional non-GAAP financial measures should not be used in excess of, as a substitute for, or as an alternative to, and should be considered only in conjunction with, the US GAAP financial measures presented herein. Accordingly, the Company has included below reconciliations of additional non-GAAP financial measures with the most directly comparable financial measures calculated and presented in accordance with US GAAP.
About Cresco Labs Inc
Cresco Labs’ mission is to normalize and professionalize the cannabis industry through a CPG approach, creating national brands and a customer-focused retail experience while acting as the industry’s steward on legislative and regulatory initiatives. As a leader in growing, manufacturing and distribution of branded products, the Company uses its scale and agility to grow its portfolio of brands nationally, which include Cresco, High Supply, FloraCal, Good News, Wonder Wellness Co., Mindy’s and Remedi. The company also operates nationally high-performing dispensaries under the Sunnyside brand, which are focused on building patient and consumer trust and providing continuing education and convenience in a great traditional retail experience. Through year-round policy, community outreach and SEED initiative efforts, Cresco Labs is committed to supporting communities through authentic engagement, economic opportunity, investment, workforce development and legislative initiatives designed to create the most responsible, respectful and robust cannabis industry possible. Learn more about the Cresco Labs journey by visiting www.crescolabs.com or by following the company on Facebook, X or LinkedIn.
New Cannabis Ventures’ NCV Newswire aims to gather high-quality content and information about leading cannabis companies to help our readers filter through the noise and stay on top of the most important cannabis business news. The NCV Newswire is edited by an editor and is not, however, automated. Got a secret news tip? Get in touch.
You are reading this week’s edition of New Cannabis Ventures, a weekly magazine we have published since October 2015. The newsletter includes unique insight to help our readers stay ahead of the curve, as well as links to the most important news of the week. We no longer email them like we used to, but post this and all newsletters on our website here.
friends,
Cannabis was legalized seven years ago. Congress didn’t know exactly what it was doing at the time, but it seemed like a good thing at the time: the Farm Act of 2018. From an investor perspective, there wasn’t much excitement, although there were a few CBD-focused companies enjoying this change. These stocks did well initially, but have fallen and are all small companies that should not be publicly traded.
There have been several challenges. CBD has a good perception among consumers, and the benefits go beyond proven health problems such as treating epilepsy (Jazz Pharma, which bought GW Pharma a few years ago, sold more than $300 million of Epidiolex in Q3). Many people use CBD for many reasons, but the FDA is not involved because it is it is extremely difficult to figure out how to manage the setting about it and asked Congress for help in early 2023.
The federal government’s failure to properly regulate CBD is only part of the problem. The law was poorly written, and companies figured out ways to develop other cannabinoids, including THCA, from hemp. No one was talking about this after the Farm Act was passed, but sales of other products outside of CBD have increased due to the development of technology as well as synthetics. The hemp cannabinoid industry is booming but remains unregulated. Many states have legalized cannabis for medical use, and many have implemented adult-use programs. Unlike manufacturers and sellers of cannabis products, companies that are part of state regulated programs face a much higher level of regulation. They also face 280E taxation.
Discussed this newsletter about fourteen months ago threat and opportunity with cannabis. At the time, no major cannabis companies were involved in cannabis, but that quickly changed as the three largest MSOs all got involved. Curaleaf took one of its Florida medical cannabis dispensaries and turned it into a cannabis store. It also manufactures hemp-based products. Trulieve launched a THC beverage business, and Green Thumb Industries worked with a company that was acquired by publicly traded Agrify. Agrify became RYTHM, Inc., which is controlled by GTI. None of these companies provide much in terms of revenue or even details on the number of units sold. Canadian LPs Canopy Growth, Organigram and Tilray Brands sell THC drinks in the US
This week, another MSO, MariMed, announced it is entering the cannabis market. Glass House Brands, which established a relationship with UC Berkeley, may also enter the industry.
In that August 2024 segment, I suggested that there are good reasons for state-regulated cannabis companies to step out of their comfort zone. The hemp industry remains unregulated by the federal government, so there are potential risks that the federal government will make some changes that will make it more difficult for operators. I would like it to be properly regulated. There are too many unregulated sellers and manufacturers selling bad products to consumers. Many states are cracking down on the hemp industry as well.
One MSO, Jushi Holdings, has filed lawsuits against retailers in Pennsylvania and Virginia for failing to properly follow THC hemp laws in those states. This is not the only sign of war, as many decry the impact of hemp-based cannabinoids on the revenues of state-regulated hemp companies.
This fight is bad for carriers, but it’s also bad for consumers, in my opinion. How this plays out is very uncertain, but hopefully the federal government will be more rational about hemp products. Consumers deserve safe products that are easy to understand and that are available in restaurants and stores.
Sincerely,
Alan:
New Cannabis Ventures publishes curated articles as well as exclusive news. Here is what we published last week.
Based in Houston, Alan leverages his experience as an online community founder 420 Investorthe first and still the largest due diligence platform focused on 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. time New Cannabis Ventureshe is responsible for content development and strategic alliances. Before turning his attention to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst with more than two decades of research and portfolio management experience. A prolific writer, with over 650 articles published since 2007 Looking for Alphawhere he has 70,000 followers, Alan is a frequent speaker at industry conferences and frequent source Media including the NY Times, Wall Street Journal, Fox Business and Bloomberg TV. Contact Alan. Twitter: |: Facebook |: LinkedIn: |: El
Innovative Industrial Properties Reports Third Quarter 2025 Results
Announces $270M Commitment in IQHQ, Premier Life Sciences Real Estate Platform
Closed on a $100 million new secured revolving credit facility
SAN DIEGO–(BUSINESS WIRE)–Innovative Industrial Properties, Inc. (NYSE: IIPR) (“IIP” or the “Company”) today announced results for the third quarter ended September 30, 2025.
Remarks by the Executive Chairman
“We are pleased to have made our first investment outside of the cannabis industry in the third quarter with our $270 million investment in IQHQ, marking a return to growth for IIP and significant diversification and addition for IIP shareholders,” said IIP Executive Chairman Alan Gold. “Additionally, the successful closing of our new $100 million credit facility reinforces our belief that our life sciences investments increase our reach and value of capital. With a strong, low-leveraged balance sheet, this credit facility strengthens our financial flexibility and enables us to capitalize on the long-term growth of the life sciences industry.”
Q3 2025 and Q4 to date highlights
Financial results and dividends
Total revenue of $64.7 million and net income attributable to common stockholders of $28.3 million, or $0.97 per share (all per share amounts in this press release are on a diluted basis unless otherwise noted).
Adjusted funds from operations (“AFFO”) and normalized funds from operations (“Normalized FFO”) were $48.3 million and $45.2 million, respectively.
Paid a quarterly dividend of $1.90 per common share on October 15, 2025 to stockholders of record as of September 30, 2025. Since its inception, IIP has paid more than $1.0 billion in common stock dividends to its shareholders.
New Cannabis Ventures’ NCV Newswire aims to gather high-quality content and information about leading cannabis companies to help our readers filter through the noise and stay on top of the most important cannabis business news. The NCV Newswire is edited by an editor and is not, however, automated. Got a secret news tip? Get in touch.
Hemp stocks, as measured by the Global Hemp Stock Index, were quite volatile in 2024 and have been in 2025 as well. The index fell 7.5% in December to close 15.2% lower for the year, and has also had a poor start to 2025. It hit a new all-time high of 4.97 on the last day of March, and then dropped in early April. The index gained 11.5% in April, but ended the second quarter from there, closing at 5.02. Q3 was strong with increases in July and August, and September, which started with a pullback, ended with another increase before pulling back on the last day. In September, the index fell slightly. It retreated further in October, falling 11.1% to 6.83.
After collapsing 21.8% in late 2024 to 6.88 in Q4, the index fell heavily in Q1 and then marginally in Q2. The global hemp stock index, which now has 28 members, fell 27% year-to-date in June. After a 53.0 percent rally in the third quarter, the index increased by 11.6 percent compared to last year. Now it has decreased by 0.7%.
Since its peak in February 2021, the global hemp stock index is down 92.6% from a closing high of 92.48.
The top 3 names all rose more than 1% in October;
Each of these shares is updated annually.
The weakest names on October 3 are all down more than 22%.
Two of these stocks are down significantly year-to-date, while Tilray is up slightly.
We will summarize the performance of the index again in a month. In April, we historically combined the two articles, and we update here the other indexes that New Cannabis Ventures continues to maintain: the American Cannabis Operator Index, the Ancillary Cannabis Index, and the Canadian Cannabis LP Index.
American Hemp Operator Index
The ACOI fell again in October, falling 6.0% to 12.21. It jumped 123.6% in Q3 to 12.99 and is now up 46.1% year-to-date, up from 8.36.
The strongest performing stock in October was Ascend Wellness (OTC: AAWH ) (CSE: AAWH.U ), which rose 8.0%. The weakest, TerrAscend (OTC: TSNDF ) (TSX: TSND ), was down 14.6% again.
In November, the index will have ten members with the addition of Vireo Health (OTC: VREOF ).
Auxiliary cannabis index
Ancillary commodities lost 13.4% in October as the index fell to 11.02. The index, which rose 14.5% to 12.72 in 3Q, is down 20.0% year-to-date from 13.77 in 2025.
The strongest performing stock in October was Chicago Atlantic Real Estate Finance ( REFI ), which rose 0.6%. The weakest, SHF Holdings, fell by 64.5%.
In November, the index will have eight members, with the removal of LIEN and SHFS, both of which joined in October.
Canadian Hemp LP Index
Canadian LPs fell 10.4% in October as the index fell to 65.91. The index, which increased by 78.4% in the third quarter, reaching 73.56. now up 31.5% in 2025 from 50.11 so far.
The strongest Canadian LP in October was Adastra Holdings (CSE: XTRX ), which rose 12.8%. Rubicon Organics (TSXV: ROMJ ) was the weakest, down 22.5%.
In November, the index will have thirteen members, and Cannabis Decibel (TSXV: DB) will rejoin.
Based in Houston, Alan leverages his experience as an online community founder 420 Investorthe first and still the largest due diligence platform focused on 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. time New Cannabis Ventureshe is responsible for content development and strategic alliances. Before turning his attention to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst with more than two decades of research and portfolio management experience. A prolific writer, with over 650 articles published since 2007 Looking for Alphawhere he has 70,000 followers, Alan is a frequent speaker at industry conferences and frequent source Media including the NY Times, Wall Street Journal, Fox Business and Bloomberg TV. Contact Alan. Twitter: |: Facebook |: LinkedIn: |: El
