Cresco Labs CEO Charlie Bachtell, who runs one of the largest multi-state cannabis operators (MSO) in the U.S., expects significant consolidation for his company in the coming year.
Cresco Labs just reported its third-quarter earnings, highlighted by $165 million in revenue. He said his company has a solid cash position – with about $243 million in cash and cash equivalents – and it has put some debt refinancing behind it, which puts it in a good position to pursue M&A.
“Our pipeline includes several compelling opportunities that align with our operational strengths, accretive, synergistic and strategically located,” he said during today’s earnings call. “The quality of deals available today is the strongest we’ve seen in years and we expect M&A to become a meaningful growth lever in 2026.”
Bachtell said the M&A he’s currently seeing runs the gamut from single stores to multi-state platforms.
“These assets need better homes and we’re excited to evaluate all of them and find the ones that fit best for us,” he said.
Cresco Labs has a strong presence in markets including Illinois, Pennsylvania and Florida and is currently establishing a more robust retail footprint in Ohio. The company said it’s also on track to begin cultivation and processing operations soon in Kentucky, which is close to kicking off its medical cannabis market. In the coming weeks, Cresco will also launch its branded flower in Germany, which will mark its first launch in the European Union.
Like other major cannabis MSOs, Cresco Labs is also carefully considering hemp-derived THC as a potential part of its product portfolio. The company said it has a number of prototype hemp products including beverages and edibles, but committed to taking it slow as the regulatory framework clarifies and distributors figure out what works best for them.
