Thu, Nov 14, 10:08 PM (235 days ago)
Acreage Holdings, Inc. (ACRG) reported a challenging third quarter for 2024, with total revenues declining 30% year-over-year to $39.6 million, largely due to liquidity constraints affecting inventory purchases. Retail revenue dropped 37% to $27.4 million, while wholesale revenue remained relatively stable, down 4% to $12.2 million. The gross profit fell 35% to $13.9 million, leading to a gross margin decline from 38% to 35%. Operating expenses decreased by 5% to $22.6 million, driven by reductions in general and administrative costs and staffing. The net loss attributable to Acreage increased significantly to $19.5 million from $7.6 million in Q3 2023. Adjusted EBITDA also fell, reflecting a $6.6 million drop to $0.6 million, marking a significant operational challenge. The company reported an accumulated deficit of $824.4 million and raised substantial doubt about its ability to continue as a going concern. Despite these challenges, Acreage has executed strategic initiatives, including entering the New York adult-use market and relocating dispensaries to enhance operational efficiency. Future operations may be influenced by ongoing regulatory changes and Canopy Growth's acquisition plans, which remain subject to various conditions.