Multi-state cannabis operator Trulieve is coming off a positive first quarter and the company could be looking at potential consolidation targets to help expand its footprint.
CEO Kim Rivers told investors and analysts Wednesday that she believes cannabis pricing compression hasn’t reached its lowest point yet, which could force some smaller cannabis companies to consider M&A options.
“There’s significant debt coming due for a lot of companies…who I don’t think, unless something dramatically changes, have the ability to pay that down like we do,” she said. “So, I think folks are going to be facing some tough decisions, and that creates opportunity. And we’re going to make sure we’re in a position to be opportunistic when those opportunities arrive. But I think there’s no benefit here in not being patient.”
The comments came after Trulieve posted first-quarter results that exceeded analyst expectations, including revenue of $298 million, with 95% of total generated by retail sales. The company also bumped up its gross margin to 62% versus 58% last year, with gross profit of $183 million.
Despite an adjusted net loss of $3 million, Trulieve’s generated cash flow from operations totaled $51 million and free cash flow reached $34 million. Cash on hand at the end of the quarter was $329 million.
"Strong margins and cash flow achieved in the first quarter clearly demonstrate our commitment to operational excellence," said Rivers in a statement. "With our loyal customer base, branded products, and efforts to drive cannabis reform, Trulieve stands out as an industry leader."
Trulieve said its rewards program members reached more than 625,000 members as of March 31, 2025. Loyalty members accounted for 68% of transactions during the first quarter, and the company said during its earnings call that loyalty members on average spend more than non-loyalty members.
The company has also been making investments in the hemp-derived THC beverage market, launching its Onward lineup during the quarter and planning to launch its Upward THC energy drink in June.
