Trulieve Cannabis Q2 Earnings Call Highlights

Trulieve Cannabis NYSE: TRLV reported second-quarter revenue of $271 million, while outlining plans to expand in Georgia and Texas following changes in medical cannabis regulations and the company’s June listing on the New York Stock Exchange. The company said reported second-quarter results included the combined Trulieve and Harvest businesses through a June 3 deconsolidation transaction, followed by medical-only Trulieve operations for the remainder of June. Revenue from medical-only operations totaled $222 million, up 4% sequentially. Chief Executive Officer Kim Rivers said the company’s NYSE listing, U.S. re-domiciliation and the removal of Section 280E tax treatment for state-licensed medical marijuana operations could reduce its cost of capital over time. Trulieve listed on the NYSE on June 10 and plans to hold a closing bell ceremony on Aug. 18.

Second-Quarter Results and Cash Flow Trulieve reported second-quarter gross profit of $162 million, representing a 60% gross margin. Medical-only operations generated gross profit of $140 million and a 63% margin. Adjusted EBITDA was $98 million, or 36% of revenue. The company reported a net loss of $406 million, primarily reflecting a $407 million impact from the Harvest deconsolidation and equity investment. Excluding non-recurring items, Chief Financial Officer Jan Reese said net income would have been $20 million, or $0.11 per share. Operating cash flow totaled $53 million during the quarter, while capital expenditures were $21 million and free cash flow was $32 million. Trulieve ended the quarter with $325 million in cash and $289 million in debt.

Second-quarter revenue: $271 million Medical-only revenue: $222 million, up 4% sequentially Adjusted EBITDA: $98 million, or a 36% margin Operating cash flow: $53 million Free cash flow: $32 million Quarter-end cash: $325 million The company adopted a share repurchase program in June authorizing purchases of up to the lesser of $50 million or about 8.5 million shares. No shares were repurchased during the second quarter.

Georgia Expansion Gains Momentum Rivers said Georgia represents a significant near-term growth opportunity after the state expanded its medical marijuana program. Beginning July 1, Georgia removed a THC cap, added qualifying conditions including HIV, IBS and lupus, and permitted products including vapor products and inhalable flower. Trulieve said traffic at its Georgia dispensaries tripled during the first two weeks of July, though it subsequently sold out of flower. The company expects flower to return in the coming weeks as cultivation capacity ramps through year-end and into 2027. It also plans to introduce new concentrate and vape...