Cresco Labs Reports $24M Loss in Q1

The company narrowed its loss compared to the previous quarter and reported record revenue.

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Cannabis company Cresco Labs said it saw record revenue in its latest fiscal quarter but nonetheless reported a loss of $24.1 million for the first three months of the year.

The Chicago-based company reported $178.4 million in revenue for the period, including records for both retail revenue at $82.8 million and net wholesale revenue of $95.6 million. Crescoโ€™s overall revenue for Q1 was up nearly 10% compared to the previous quarter and up nearly 170% compared to the same window in 2020.

The company said gross profit for the quarter was $87 million, up nearly 270% compared to Q1 2020, while its quarterly adjusted earnings of $35 million represented a more than five-fold increase from the beginning of 2020.

Although the company narrowed its loss from the $41.2 million loss in the fourth quarter of 2020, high net expenses continued to keep the company in the red. Cresco officials said numerous initiatives to accelerate the companyโ€™s growth, including both organic expansion and acquisitions, would pay off in subsequent quarters.

The company said it hopes to reach an annualized revenue run-rate of more than $1 billion by the end of the year.

โ€œWe laid the groundwork in Q4 and Q1, and now our expertise with integrating new assets and producing operating leverage will kick in,โ€ Cresco CEO and co-founder Charles Bachtell said in a statement.

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