Trulieve Reports $303 Million in Revenue in Q2 2024 Financial Results

• Second quarter performance of $303 million in revenue, up 2% sequentially and 8% year-over-year, and 60% gross margin
• Launched adult-use sales in Ohio Aug. 6 at three locations
• Major milestones include opening of 200th retail location and 8-year anniversary of first sale

TALLAHASSEE, Fla., Aug. 6, 2024 – PRESS RELEASE – Trulieve Cannabis Corp., a leading and top-performing cannabis company in the U.S., announced its results for the quarter ended June 30, 2024. Results are reported in U.S. dollars and in accordance with U.S. generally accepted accounting principles (GAAP) unless otherwise indicated. Numbers may not sum perfectly due to rounding.

Q2 2024 Financial and Operational Highlights*

• Revenue of $303 million increased 2% sequentially and 8% year-over-year, with 95% of revenue from retail sales. Strong second quarter sales were driven by higher retail traffic and increased wholesale revenue.
• Achieved gross margin of 60%, with GAAP gross profit of $182 million.
• Reported net loss of $12 million, an improvement of 48% sequentially. Adjusted net income of $0.2 million* excludes non-recurring charges, asset impairments, disposals and discontinued operations.
• Achieved EBITDA of $88 million*, or 29% of revenue and adjusted EBITDA of $107 million*, or 35% of revenue, up 1% sequentially and 36% year-over-year.
• Generated cash flow from operations of $71 million and free cash flow of $45 million*.
• Cash at quarter end was $356 million, inclusive of an additional $2 million in tax refunds received during the second quarter, from amended returns, related to the company’s tax challenge of 280E.
• Opened three new dispensaries in Brooksville, North Palm Beach, and Stuart, Fla.
• Acquired two dispensaries in Beavercreek and Columbus, Ohio.
• Ended the quarter with 32% of retail locations outside of the state of Florida.

*See "Non-GAAP Financial Measures" below for additional information and a reconciliation to GAAP for all Non-GAAP metrics.

Recent Developments

• Launched adult-use sales Aug. 6 in Ohio at three locations: Beavercreek, Columbus, and Westerville.
• Rolled out #YesOn3 product line to support Smart and Safe Florida adult-use campaign.
• Opened six new retail locations in Gulf Breeze, Homosassa, Madison, Ocala, and Panama City, Fla., and Wilkes-Barre, Pa.
• Currently operate 206 retail dispensaries and over 4 million square feet of cultivation and processing capacity in the United States.

Management Commentary

"Today marks another milestone, as Trulieve completed our first recreational sale in the state of Ohio with the successful conversion of our three locations to adult use. Second quarter results demonstrated strength in our core business with our third consecutive quarter of revenue growth and margin expansion," Trulieve CEO Kim Rivers said. "All of the effort and investment over the past two years to set a solid foundation for long term success is paying dividends. Given our financial performance and significant scale in key markets, Trulieve is best positioned for the coming wave of growth catalysts."

A full line-by-line breakdown of the company’s financial highlights is available here.

Non-GAAP Financial Measures (Unaudited)

In addition to our results determined in accordance with GAAP, we supplement our results with non-GAAP financial measures, including EBITDA, adjusted EBITDA, adjusted EBITDA margin %, adjusted net income (loss), adjusted net income (loss) per diluted share and free cash flow. The company calculates EBITDA as net income (loss) before net interest expense, income tax expense, depreciation and amortization; adjusted EBITDA as net income (loss) before net interest expense, interest income, income tax expense, depreciation and amortization and also excludes certain extraordinary items; adjusted EBITDA margin as adjusted EBITDA as % of revenue, adjusted net income (loss) as net income (loss) less certain extraordinary items; adjusted EPS as adjusted net income (loss) divided by basic and diluted shares outstanding; and free cash flow as cash flow from operations less capital expenditures. Our management uses these non-GAAP financial measures in conjunction with GAAP financial measures to evaluate our operating results and financial performance. We believe these measures are useful to investors as they are widely used measures of performance and can facilitate comparison to other companies. These non-GAAP financial measures are not, and should not be considered as, measures of liquidity. These non-GAAP financial measures have limitations as analytical tools in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP. Because of these limitations, these non-GAAP financial measures should be considered along with GAAP financial performance measures. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures. A reconciliation of the non-GAAP financial measures to such GAAP measures can be found below. These non-GAAP financial measures should be considered supplemental to, and not a substitute for, our reported financial results prepared in accordance with GAAP.