Cresco Labs’ Disciplined Strategy Drives Record Cash Flow in 2024 Financial Results

[PRESS RELEASE] – CHICAGO, March 12, 2025 – Cresco Labs Inc., the industry leader in branded cannabis products with a portfolio of America’s most popular brands and the operator of Sunnyside dispensaries, released its financial and operating results for the fourth quarter and year ended Dec. 31, 2024. All financial information presented in this release is reported in accordance with U.S. generally accepted accounting principles (GAAP) and in U.S. dollars, unless otherwise indicated, and is available on the company’s investor website, here.

Fiscal Year 2024 Highlights

• Revenue of $724 million. Record operating cash flow of $132 million and free cash flow¹ of $114 million.
• Gross profit of $364 million. Adjusted gross profit¹ of $374 million; and an adjusted gross margin¹ of 52% of revenue, a 270 basis-points (bps) improvement year-over-year.
• SG&A of $221 million. Reduced adjusted SG&A¹ by 12% year-over-year to $212 million, or 29% of revenue.
• Net loss of $60 million, which includes one-time, non-cash charges of $66 million, related to the company’s expected benefits from its updated 280E position, as initially described in the second quarter of 2024.
• Adjusted EBITDA¹ of $200 million, up 15% year-over-year; and adjusted EBITDA margin¹ of 28%, a nearly 510 bps improvement year-over-year.
• Retained the No. 1 share position in Illinois, Pennsylvania and Massachusetts for the full year.²

Fourth Quarter 2024 Highlights

• Fourth quarter revenue of $176 million. Fourth quarter operating cash flow of $29 million and free cash flow¹ of $27 million.
• Gross profit of $84 million. Adjusted gross profit¹ of $87 million; and an adjusted gross margin¹ of 50% of revenue.
• SG&A of $56 million or 32% of revenue.
• Net income of $0.4 million.
• Fourth quarter adjusted EBITDA¹ of $42 million and adjusted EBITDA margin¹ of 24%.

Management Commentary

“In 2024, the team executed with discipline—streamlining operations, prioritizing profitability, and generating record free cash flow,” Cresco Labs CEO and co-founder Charlie Bachtell said. “With $132 million in operating cash flow, a leading brand position in our core markets, and retail productivity that outperforms the industry, our foundation is stronger than ever. In 2025, we’re extending our focus to strategically deploy capital to create growth and maximize returns for the years ahead. It’s a straightforward approach: execute at the highest level, generate cash, reinvest in high-ROI opportunities, and repeat.

“Kentucky is our first of these new market expansions—a strategic addition backed by clear regulations. As one of only two Tier 3 cultivators, we have up to 25,000 square feet of canopy, representing more than 20% of the state’s total allocation. This allows us to scale efficiently, serve patients quickly, and reinvest in our operations—just as we have in Illinois, Pennsylvania, and Ohio. Congratulations to the Cresco team on a phenomenal 2024 and let’s go in 2025!”

 Balance Sheet, Liquidity, and Other Financial Information

• As of Dec. 31, 2024, current assets were $294 million, including cash, cash equivalents, and restricted cash of $141 million. The company had senior secured term loan debt, net of discount and issuance costs, of $352 million and a mortgage loan, net of discount and issuance costs of $18 million.
• On Oct. 25, 2024, the company repurchased $40 million principal amount of our senior loan and paid $0.3 million of accrued interest. There were no prepayment penalties or exit fees due on this repurchase.
• Total shares on a fully converted basis to subordinate voting shares were 474,236,616 as of Dec. 31, 2024.

Non-GAAP Financial Measures

This release reports its financial results in accordance with U.S. GAAP and includes certain non-GAAP financial measures that do not have standardized definitions under U.S. GAAP. The non-GAAP measures include: Earnings before interest, taxes, depreciation, and amortization (EBITDA); 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 U.S. GAAP. The company defines these non-GAAP financial measures as follows: EBITDA as net loss (income) before interest, taxes, depreciation, and amortization; Adjusted EBITDA as EBITDA less other (expense) income, net, fair value mark-up for acquired inventory, adjustments for acquisition and non-core costs, impairment and share-based compensation; Adjusted EBITDA Margin as Adjusted EBITDA divided by revenues, net; Adjusted gross profit as gross profit less fair value mark-up for acquired inventory and adjustments for 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 proceeds from tenant improvement allowances. The company has provided the non-GAAP financial measures, which are not calculated or presented in accordance with U.S. GAAP, as supplemental information and in addition to the financial measures that are calculated and presented in accordance with U.S. GAAP and may not be comparable to similar measures presented by other issuers. These supplemental non-GAAP financial measures are presented because management has evaluated the financial results both including and excluding the adjusted items and believe that the supplemental non-GAAP financial measures presented provide additional perspective and insights when analyzing the core operating performance of the business. These supplemental non-GAAP financial measures should not be considered superior to, as a substitute for or as an alternative to, and should only be considered in conjunction with, the U.S. GAAP financial measures presented herein. Accordingly, the company has included below reconciliations of the supplemental non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP.