Cresco Labs’ Q1 Loss Widens, Revenue Declines: Retail Terms It A ‘Cautionary Tale’ For Investors

Cresco Labs Inc. (CRLBF) on Friday reported a decline in its first-quarter revenue while losses widened, sending shares down 8% in midday trading.

The company, which makes branded cannabis products, reported revenue of $166 million for the three months through the end of March, down from the $184 million reported in the corresponding period of 2024.

However, this surpassed an analyst estimate of $165 million, as per Finchat data.

The Sunnyside dispensaries operator reported a net loss of $15 million for the quarter, compared to a loss of $2 million in the corresponding period of last year.

Adjusted earnings before interest, taxes, depreciation, and amortization came in at $36 million, in line with an analyst estimate of $35.9 million, but below the $54 million reported in the first quarter (Q1) of 2024.

The company ended the quarter with cash, cash equivalents, and restricted cash of $159 million, as well as senior secured term loan debt, net of discount and issuance costs, of $353 million. The company also had a mortgage loan, net of discount and issuance costs of $18 million.

Cresco was initially slated to report earnings earlier this month, but postponed it to provide additional time to complete procedures for reviewing its first-quarter financial statements.

On Stocktwits, retail sentiment around CRLBF rose from ‘neutral’ to ‘bullish’ territory while message volume rose from ‘low’ to ‘high’ levels.

A Stocktwits user expressed skepticism about the OTC counter, calling it ‘a cautionary tale.’

According to data from Koyfin, six of seven analysts covering the Cresco stock rate it ‘Buy’ or higher, while one rates it a ‘Hold’.

CRLBF is down by 34% this year and by about 66% over the past 12 months.

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