The Cannabist Company Reports 31% Revenue Decline and Increased Losses in Q2 2025

The Cannabist Company Holdings Inc. reported a significant decline in financial performance for the second quarter of 2025, with revenues of $86.4 million, down 31% from $125.2 million in the same period last year. For the first half of 2025, revenues totaled $173.8 million, a decrease of 30% compared to $247.8 million in the first half of 2024. The company's net loss for the quarter was $77.4 million, a stark contrast to a loss of $13.6 million in the prior year, marking a 467% increase in losses. The loss attributable to shareholders was $77.9 million, or $0.16 per share, compared to a loss of $0.03 per share in the previous year.

The company's financial struggles were attributed to a combination of factors, including a decline in revenue from existing retail and wholesale operations and the impact of divestitures. The company reported a net decline of $10.9 million in revenue from ongoing operations and a $30.4 million drop from the sale or closure of certain operations. Despite these challenges, regulatory changes allowing for adult-use cannabis contributed an increase of $2.4 million in revenue during the quarter. Cost of sales also decreased by 10% to $69.2 million, primarily due to the closure of certain operations, although this was partially offset by increased costs in existing operations.

In terms of strategic developments, The Cannabist Company has been actively restructuring its operations, including divesting non-core assets. The company completed several significant divestitures, including its Utah operations for approximately $6.5 million and its Arizona operations for $15 million. Additionally, the company has been involved in a debt restructuring process, exchanging existing notes for new ones with extended maturities, which has resulted in a reduction of current liabilities from $228.7 million at the end of 2024 to $179.0 million as of June 30, 2025.

Operationally, the company has seen a reduction in its employee headcount and a decrease in customer engagement metrics, reflecting the impact of its restructuring efforts. As of June 30, 2025, total assets were reported at $563.8 million, down from $696.2 million at the end of 2024, while total liabilities decreased slightly to $702.7 million. The company’s equity position has deteriorated, with total equity reported at $(138.8) million, compared to $(30.1) million at the end of the previous year.

Looking ahead, The Cannabist Company remains focused on improving its financial performance and operational efficiency. The company anticipates that ongoing restructuring efforts and strategic divestitures will position it for future growth, although it acknowledges the inherent risks and uncertainties in the cannabis industry, including regulatory changes and market conditions. The management has expressed a commitment to enhancing profitability and exploring opportunities for expansion in both existing and new markets.