3 Cannabis Earnings Reports To Be Aware Of!

During the last month, several high-profile North American cannabis companies have reported quarterly financial results. The average response from the market has been less than positive and we will monitor how this trend continues in future quarters.

Today, we want to highlight 3 cannabis companies that recently reported quarterly financial results. In each breakdown, we provided a few key takeaways from the earnings report and want our readers to be aware of these developments.

Tilray Brands

Earlier this month, Tilray Brands Inc. (Nasdaq: TLRY) (TSX: TLRY) surged higher before it reported quarterly financial results. Following the earnings announcement, the stock plunged lower and we want our readers to be aware of the price movements.

From announcing the acquisition of HEXO Corp. (Nasdaq: HEXO) (TSX: HEXO) to reporting a $1+ billion net loss for the quarter, the market did not respond favorably to Tilray’s earnings report. Since the announcement, the stock has fallen by more than 10% and we are cautiously optimistic with its near-term outlook.

Although the recent pullback has been significant, we remain on the sidelines with Tilray due to the volatility. Below we highlighted 3 of the most significant takeaways from the company’s quarterly financial report and want our readers to be aware of them:

1. During the quarter, Tilray generated $145.6 million of revenue (which is slightly higher than the prior quarter) and reported a net loss of approx. $1.2 billion
2. At the end of the quarter, the company reported to have $408.3 million in cash and marketable securities
3. The management team reiterated its expectations as to recording positive free cash flow from operating segments in fiscal 2023

Aleafia Health

In February, Aleafia Health Inc. (TSX: AH, OTCQB: ALEAF) reported third quarter financial results and we were impressed with the advancements that were made during the period.

From capturing market share in Canada to exporting cannabis to Europe, the Canadian cannabis company reported a series of important milestones. Going forward, we believe Aleafia Health is positioned to capture additional market share in Canada as well as certain international markets.

After Aleafia Health published quarterly earnings, the stock has come under pressure (down more than 30% since then). We believe the selloff is overdone and find Aleafia Health’s risk-reward profile to be favorable at current levels. To better explain the story, we highlighted 3 of the most significant takeaways from the quarterly financial report:

1. Aleafia Health reported positive adjusted EBITDA for the second consecutive quarter
2. The company completed its first shipment as part of a new European agreement
3. Medical cannabis revenue increased by 40% on a year-over-year basis

Indiva Limited

Last week, Indiva Limited (OTC: NDVAF) (TSXV:NDVA) reported fourth quarter financial results and the stock bounced higher on the announcement.

Although we are favorable on the move higher, the rally took place on lighter-than-normal trading volume. Going forward we will continue to monitor this metric and will provide updates on how the stock continues to move.

Over the next year, we expect the Canadian cannabis company to report several significant announcements and our readers should be aware of this. Some of the most important highlights from Indiva’s fourth quarter earnings report include:

1. During the quarter, Indiva generated $9.3 million of net revenue which was approx. 15% higher than the prior quarter. When compared to the same period last year, net revenue was less than 1% lower on a year-over-year basis and the decrease was primarily related to weaker sales of Wana Sour Gummies.
2. Edibles are a major market for Indiva and the product category accounted for $7.5 million of net revenue in the fourth quarter. Last year, edibles accounted for a smaller percentage of net revenue and this was due to higher sales of ingestible extracts
3. According to data from Hifyre, Indvia has the largest market share of edibles in Canada. Based on Hifyre’s data for the fourth quarter, Indiva’s edible products have captured more than 25% of market share in Canada.

If you are interested in learning more about earnings reports from cannabis companies, please send an email to support@technical420.com with the subject “Cannabis Earnings Season” to be added to our distribution list.

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Michael Berger is Managing Partner of StoneBridge Partners, LLC and Founder of Technical420.com. Prior to entering the cannabis industry, Michael was an Equity Research Analyst at Raymond James Financial covering the Energy Sector. Michael has been featured in publications such as The Street, Bloomberg, US Money News, and hosts various cannabis events across North America.

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