The Cannabist Company Holdings Inc. reported a significant decline in financial performance for the first quarter of 2025, with revenues totaling $87.4 million, a decrease of 29% from $122.6 million in the same period last year. The company's net loss narrowed slightly to $32.2 million, compared to a loss of $34.6 million in the prior year. The reduction in revenue was attributed to a decline in existing retail and wholesale operations, as well as the impact of divestitures, which collectively accounted for a revenue drop of $41.6 million. However, the company noted a positive contribution of $6.4 million from new retail facilities and regulatory changes allowing adult-use sales.
In terms of operational efficiency, Cannabist managed to reduce its cost of sales by 27% to $58.2 million, leading to a gross profit of $29.3 million, down from $42.5 million a year earlier. Selling, general, and administrative expenses also decreased by 30% to $37.3 million, reflecting cost-cutting measures and restructuring efforts. The company reported a loss from operations of $8.2 million, an improvement from the $10.7 million loss recorded in the same quarter of 2024.
The company has been actively restructuring its operations, including the divestiture of non-core assets. Notable transactions include the sale of its Utah operations for approximately $6.5 million and the divestiture of its Florida business, which generated $5 million in cash. As of March 31, 2025, Cannabist had 479.8 million shares of common stock outstanding, reflecting a slight decrease from the previous quarter. The company continues to focus on expanding its retail footprint, with 84 facilities across 13 U.S. jurisdictions, including 66 dispensaries.
Looking ahead, Cannabist's management expressed cautious optimism regarding future performance, contingent on the successful completion of its ongoing debt restructuring efforts. The company is currently engaged in a significant debt exchange transaction aimed at extending the maturity of its existing notes. However, this transaction is subject to litigation, which could impact the company's liquidity and operational flexibility. The company remains committed to improving its financial health and is exploring opportunities for growth through strategic acquisitions and market expansion.
About Cannabist Co Holdings Inc.
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