MariMed Inc. Reports Slight Revenue Increase to $37.96 Million in Q1 2025

MariMed Inc. reported a slight increase in revenue for the first quarter of 2025, totaling $37.96 million, compared to $37.93 million in the same period of 2024. The company experienced a 15.7% rise in wholesale product sales, which reached $16.79 million, while retail sales decreased by 7.0% to $20.78 million. The overall revenue stability was attributed to higher wholesale revenue in states like Illinois and Maryland, which offset declines in retail sales across other locations. However, the company also noted a significant drop in other revenue, which fell to $390,000 from $1.08 million, primarily due to reduced management fees and real estate rentals following recent acquisitions.

In terms of profitability, MariMed reported a net loss of $5.42 million for the quarter, compared to a loss of $1.29 million in the prior year. This increase in losses was driven by higher operating expenses, which rose by 10.6% to $15.99 million, largely due to increased personnel costs associated with recent acquisitions and expanded operations. The company's gross profit also declined to $15.14 million, resulting in a gross margin of 39.9%, down from 43.4% a year earlier. The increase in cost of revenue, which rose to $22.82 million, was primarily due to higher employee-related and facility costs.

Strategically, MariMed completed the acquisition of First State Compassion Center (FSC) on March 1, 2025, which is expected to enhance its market presence in Delaware. The acquisition is anticipated to contribute to revenue growth, as FSC was previously a managed services client. Additionally, the company has been focusing on expanding its product offerings and distribution networks, with plans to launch new products and enter new markets through licensing and acquisitions.

Operationally, MariMed's total assets increased to $208 million as of March 31, 2025, up from $206.99 million at the end of 2024. The company reported a headcount increase, reflecting its expansion efforts, although specific employee numbers were not disclosed. The company also recorded a significant bad debt expense of $1.39 million, primarily related to a reserve for a credit card service provider, which impacted its financial results.

Looking ahead, MariMed's management expressed optimism about future growth, driven by the integration of FSC and ongoing efforts to enhance product quality and customer experience. The company aims to leverage its expanded footprint and product offerings to improve revenue and profitability in the coming quarters, while also navigating the challenges posed by market conditions and regulatory environments.