Cresco Labs on Wednesday announced record third-quarter revenues of $153.3 million, a 63 percent, $59 million quarter-over-quarter increase. The company also reported a record EBITDA of $46.4 million, a 182 percent increase from the previous quarter.
Cresco said that it earned $90.5 million in wholesale revenue, positioning it as the largest wholesaler of branded products in the industry.
Charles Bachtell, Cresco Labs co-founder and CEO, noted that the firm increased its revenues by $87 million from Q1 to Q3, “while keeping SG&A flat.”
“The investments we made to support growth are paying off, and as a result our profitability has grown dollar for dollar with gross profit. Because of the decisions we’ve made, the changes we’ve managed through and the hard work devoted by our team over the last 12 months, Cresco Labs has substantiated itself within the very top tier of the industry and confirmed the value that is driven by our differentiated strategy.” – Bachtell in a statement
Additionally, the company reported a net income of $4.9 million, which includes unrealized gains and losses on mark-to-market instruments, changes in fair value of biological assets, and interest and tax expense. Cresco said it has net cash provided by operating activities of $17.8 million, a $7.9 million increase compared to Q2.
The company said the “increase in cash provided by operating activities was driven by increased operating leverage across the business as the company scales.”
On Tuesday, Curaleaf – another multi-state operator – also announced record revenues during the third quarter.